Times Mirror Posts 57.6% Jump in Profit in Second Quarter
Times Mirror Co., parent company of The Times, on Tuesday reported a 57.6% gain in profit from continuing operations in the second quarter, attributable in part to lower costs in its newspaper operations.
Income from continuing operations rose to $46 million, or 33 cents per share, from $29.2 million, or 14 cents per share, in the year-ago quarter. Prior-year results included an after-tax loss on an asset sale of $2.1 million, or 2 cents per share.
Net income in the quarter was $46 million, up from $26 million in the year-ago period. Revenue was down, to $837.3 million from $843.1 million.
“We made excellent progress toward achieving our 1996 financial objectives in the second quarter, even though the advertising environment in Los Angeles remains difficult,” said Mark H. Willes, Times Mirror’s chairman, president and chief executive officer.
Willes said earnings gains in subsequent quarters will slow as the cost savings work their way through the system.
“It was a real nice quarter,” said Lanny Baker, an industry analyst with Salomon Bros. in San Francisco. “I think Times Mirror is getting closer to the point at which these strong earnings will start coming from growth of the company.”
The Los Angeles-based company cited cost controls and expense reductions as the main factor in a 43.1% increase in operating profit of its Newspaper Publishing Group, to $76 million from $53.1 million a year earlier.
In addition to The Times, Times Mirror publishes Newsday, The Baltimore Sun, The Hartford Courant and other papers.
But newspaper revenue dropped 1.8% in the quarter to $517.1 million from $526.6 million in the prior year.
The main factor there was a 2.6% drop in advertising revenue, to $391.3 million from $401.7 million.
Times Mirror blamed department store and supermarket mergers in Southern California that reduced retail ad linage at The Times, as well as a drop in ad revenue due to the closure of New York Newsday.
Times Mirror shares added 12.5 cents to $40.50 on the New York Stock Exchange Tuesday.
