Times Mirror Operating Profit Slips; Net Income Rises Sharply in Quarter

Times Mirror Co., showing continued weakness in newspaper advertising sales and the effects of an ongoing reorganization in its book publishing unit, reported 4.5% lower third-quarter operating profit compared to a year ago.

However, the strength of the company’s cable television operations, plus $82 million in onetime gains from sales of marketable securities and a small cable TV system, led to sharp increases in net income and income from continuing operations.

Times Mirror Chairman and Chief Executive Robert F. Erburu said that while advertising revenue at the company’s Eastern newspapers improved slightly, “continuing advertising declines at the Los Angeles Times lead us to remain cautious about our outlook for the year.”

Operating profit dipped to $82.8 million in the third quarter this year from $86.6 million last year.

Net income for the quarter ended Sept. 26 was $77.7 million, or 60 cents a share, up from $40.7 million, or 32 cents a share, for the quarter ended Sept. 27, 1992.

Income from continuing operations was $73.6 million, or 57 cents a share (including 37 cents a share from the securities and cable system sale), on revenue of $924 million. That compares to income from continuing operations of $36.4 million, or 29 cents a share, on revenue of $888 million in the year-earlier quarter.

For the first nine months of 1993, net income was $155.4 million, or $1.21 a share, compared to a loss of $4.9 million, or 4 cents a share, in the corresponding period of 1992. Revenue for the first nine months was $2.70 billion this year and $2.61 billion a year ago.

During the quarter, newspaper publishing revenue rose 2.1% to $470.4 million. Ad revenue at The Times fell to $181.5 million, compared to $184.8 million in third-quarter 1992. At the company’s Eastern newspapers--including Newsday and New York Newsday, the Baltimore Sun papers and the Hartford Courant--ad revenue edged up 1.5% to $160 million.

Cable TV revenue for the quarter was $117.1 million, up 6.9%, and operating profit was $24.2 million, up 5.2% from 1992.

The book and magazine division saw revenue rise 5.8% to $336.6 million for the quarter. However, operating profit sank by 10.8% to $59.4 million, mainly because of an ongoing reorganization at Matthew Bender & Co.