Posted on 06/08/2004 8:30:53 AM PDT by Grampa Dave
Tribune falls after warning, downgrade
By Russ Britt, CBS.MarketWatch.com
Last Update: 11:01 AM ET June 8, 2004
LOS ANGELES (CBS.MW) -- Shares of Tribune Co. dropped 4 percent Tuesday in the wake of the newspaper publisher's warning on sales projections and a downgrade from a Wall Street analyst.
Chicago-based Tribune (TRB: news, chart, profile) fell $1.88 to $46.80 after the company said Monday it expects sales growth to be slower than expected within its publishing group and will have to take a $10 million to $15 million charge in the second quarter to make up for it.
That prompted A.G. Edwards analyst Michael Kupinski to downgrade Tribune stock to "hold" from "buy." Kupinski said, however, that Tribune's downside should be "limited."
"In our view, the likely catalyst toward higher stock valuations will be positive earnings surprises and sequential growth in quarterly revenues," Kupinski wrote in a note issued Tuesday. "Patient investors willing to wait an upturn in revenue growth at the company, which appears possible in a favorable economic environment, are encouraged to retain positions."
The publisher of the Los Angeles Times and Chicago Tribune said it will take the charge because it is reducing expense growth from 5.5 percent down to 3 percent. Tribune officials said, however, they still expect to fall within analyst estimates for the quarter.
Tribune is cutting 200 staff positions, undertaking newsprint conservation programs and reducing spending in all departments. Company officials said the growth plans that existed earlier in the year weren't meeting expectations.
"Although help wanted advertising is improving month-over-month, and preprints year-to-date are delivering strong growth, other advertising categories are not meeting the aggressive plans we had for the year," Jack Fuller, president of Tribune Publishing, said in a statement. "The shortfall is limited to a few newspapers, including the Los Angeles Times."
Tribune expects sales growth of roughly 4 percent for the full year.
The company put out its warning as it announced sales were up 3.2 percent for a roughly monthlong period ended May 23.
Russ Britt is the Los Angeles Bureau Chief for CBS.MarketWatch.com.
The LA Slimes and the Trib continue to turn off subscribers, and that is apparently impacting the advertisers.
FYI and ping list.
Liberal propaganda doesn't seem to sell anymore...
These people must be watching the cubs for the past two weeks.
I don't get any newspapers anymore. I miss out a little on local news but so what? I basically get all my information here.
Liberal spins,lies, propaganda and the DNC agenda seem to have less sales each day, month, and year when they pretend to be news.
Cubs? Who are they? :)
How are these socialist newspapers supposed to compete with taxpayer funded socialist radio (NPR)...
In competing markets for information, news that parades as propaganda doesn't sell in a free society.
Life must suck to be a liberal
We take the local newspaper due to my wife and they have a fair coverage of local news.
Interesting enough, there seems to be a battle going on with the new editor and his masters and the liberals he inherited. He seems more interested in the news instead of advancing the left wing agenda.
We stopped taking the Slime and Newsweak weekly DNC agenda posing as weekly news during Reagans first year as president.
Then we discontinued the San Francisco GayRhonicle during the 1992 election.
We haven't watched ABCNNBC BS phoney nightly news for 4 years, since we got Dish.
Like you, my news basically comes from Free Republic.
What an insult to fish.LOL! Even birdcages reject the LA Slimes.
You mean propaganda that parades as news?
You have just summarized what is happening to the Left Wing controlled media:
"Capitalism at work."
"In competing markets for information, news that parades as propaganda doesn't sell in a free society.
"Life must suck to be a liberal1"
You have just summarized what is happening to the Left Wing controlled media:
"Capitalism at work."
"In competing markets for information, news that parades as propaganda doesn't sell in a free society.
"Life must suck to be a liberal1"
The fish are dead, so they can't protest.
The birds are still alive and don't want the LA/NY Slimes or the Trib on the bottom of their cages.
MSM TABLOIDS going down hill,kerry must not be news any more with all the FLIP-FLOPPING going on
Yes
Or not.
.
...Tribune-Owned KTLA Channel 5's Morning News reported this morning that the New York Times is reporting that...
...100 Tribune-Owned Los Angeles Times Staff Positions will also be eliminated.
.
Unless they're Demoncrats, their dead weigh in every election! LOL!
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