Times Mirror Profit Rises 7.8% in First Quarter

Times Mirror Co., publisher of the Los Angeles Times, said Tuesday that its first-quarter profit rose 7.8% from a year earlier on additional advertising revenue, led by its Eastern newspapers.

Net income increased to $48.8 million, or 58 cents per diluted share, from $45.3 million, or 44 cents, the company said. The year-earlier results included a $706,000 loss from discontinued operations.

Results from Times Mirror, which also publishes Newsday in New York, the Baltimore Sun and other newspapers, beat the expectations of analysts surveyed by First Call Corp. of 55 cents per share for the quarter ended March 31.

Times Mirror’s earnings per share also rose more sharply than overall net income because the company’s stock-buyback program resulted in 14% fewer shares outstanding in the latest period.

First-quarter revenue increased 4.5%, to $746 million from $714.1 million for the same period a year earlier.

Mark H. Willes, chairman, president and chief executive officer of Times Mirror and publisher of The Times, said: “We’re off to a good start with double-digit growth in operating profit at Newsday and the Baltimore Sun, offsetting a small, expected first-quarter decline at the Los Angeles Times,” which still faces expenses from a major restructuring last year. “Looking ahead, we expect to meet our earnings objectives for the year.”

Analysts said the jury is still out on whether Willes’ cost-cutting steps will lead to long-term growth.

“Willes took brave steps that needed to be made, but I’m not sure we can conclude success yet,” said Lauren Rich Fine of Merrill Lynch.

Newspaper revenue for the first quarter rose 5.6% to $573.5 million, compared with $542.9 million a year earlier. Excluding acquisitions, revenue from Times Mirror’s Eastern newspapers climbed 2.8% from last year’s first quarter; it rose 1.1% at The Times.

Times Mirror shares fell 25 cents to close at $61.88 on the New York Stock Exchange.

Bloomberg News was used in compiling this report.