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.
I always wonder about the Sunday coupons. The advertisers pay to have the coupons included, and the LA Times sells the paper by hyping that subscribers will save hundreds of dollars per week.
If there were a more moderate alternative with the same coupons and ads, more people might switch papers. In San Diego, the local paper, the Union Tribune carries the same coupons, but it isn't much better than the LAT and costs about twice as much as the LAT.
The last information I saw on the +/- ratio showed Illinois and almost all NE and industrial states send more money to the feds than they get back while Southern and Western states are receiving more than they contribute. I am sure it is still that way.
Job loss under Blago is no more attributable to him than the nationwide losses were attributed to Bush. I can't stand the SOB since he was my US Rep. before the election but fair is fair. I met the guy while he was campaigning and he was as smarmy as a Chicago alderman.
Did you mean "one massive governmental welfare program?"
My perspective is that we have one of the worst legislatures in the nation and have had for decades. Since I have lived in Chicago for 40 yrs. I am well aware of the RAT shenanigans and the nonsense the party pushes.
I'm glad to see that other Chicagoans cancelled their subscriptions as well.
The Tribune Co. owns the Chicago Cubs and basically shuns the White Sox in their sports section. The White Sox could win the World Series and the Tribune would put the health of poor Mark Prior on the frontpage.
So not only are they liberal in the news section but they are completely biased in their coverage of Chicago baseball. I blame them for much of the problems with White Sox attendance.
So yes I am thrilled to see their stock is falling.
Good news. The local Trib rag is the Sun Sentinel, a.k.a. The Broward County RAT House Organ. I hope it's spewing red ink....
It sells enough that a Marxist-leaning, traitor to the U.S. is ahead of a good president by 6 points in the newly-released Gallup Poll. With straignt news reporting. Bush leads 70-30. Without the internet and talk radio, the traitor leads 60-40. If the French-looking traitor wins, there will be all kind of measures taken to empower the awful mainstream media, and much done to weaken the impact of the new media which we depend on.
I write sports for a major daily. Your comment, "Lesbians and sissy-boys run the shows," is absolutely true. And, they are the most arrogant group of people I've ever encountered - even moreso than professional sthletes. And, they are not especially bright - certainly not independent thinkers. They're mostly follow-the-leader types who write for the approval of their peers. Despite their fading influence, though, they have put an awful, awful man in position to win the White House.
That's because management at many papers, even some liberal ones, tends to be more "moderate," while the writers and people on the copy desk (making decisions which stories will run, and with what emphasis - after management has went home) were defiling the flag (or their bras) 35 years ago. And, the younger ones want to fit in with the old-time Marxists. For some reason, the unwritten rule at newspapers is that management lets personnel do its own thing in reporting. Kind of like a baseball manager giving Lou Brock the freedom to steal bases on his own (speaking of the Cubs, and Ernie Broglio).
Peddle Sh*t eat Sh*t as grandpa use to say.
Women and sissies are so grateful to be in the ballgame they'll do whatever they're told. Because women aren't groomed for independent thinking and decision-making, they simply fall back on the written rulebook so as not to be held accountable for problems.
Janet Reno comes to mind.
Sissies see life in terms of sexual orientation trumping everything, which puts the rest of us with a wider perspective at a disadvantage.
Again, Janet Reno.
I was a news reporter, too. My experience is similar to yours, but IMO management always has a definite bias which is fostered by giving "correct-thinking" reporters better assignments and promotions. No editor doesn't toe the line, even if an occasional story slips through for the sake of "balance."
The myth of a free press.
But the Trib used to be a great paper. Do they still run the "Injun Summer" magazine cover every autumn? Or is it too politically-incorrect?
Right after Rod took over the Governorship, the fruits and nuts came out of the woodwork and passed the ERA. What waste.
Good! Then they get a double whammy with customers stopping the trash and the lack of cold phone calls.
"If they fired the writers who claim credit for form written "diversity" and gay marriage articles they could slash their labor budget 50%. I hope they tank."
I wonder if they really pay these idiots to crank out these pre formed PC articles?
When powerhouses get taken over by lunatic libs who first priority is $crewing over America and customers while not properly running the business, they tank hard.
Hopefully the boards of the advertisers will wake up and pull their ads from the slimes and ABCNNBC BS.
.
At least the newly layed off 100 Los Angeles staffers won't be complaining about BUSH...
in the Los Angeles Times.
.
Look for coupons on the internet and print them out.
Good!
I hope they go broke.
May all of these left wing frauds which pretend to be news papers go broke and maybe get sued for fraud on the way out.
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