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.
This all because you cancelled your subscription.
This is danged good news. I cancelled my Fibune subscription a looong time ago and recently talked with other Republicans who had done the same thing.
Media treachery and manipulation just won't cut it anymore. Haaaa!
Prairie
Wonderful! I get my REAL news from Free Republic!:)
"Even birdcages reject the LA Slimes"
I put the Times in my bird cage and the poor thing died of constipation. I guess there are things even a bird will not do.
Great News!
Now if only a black hole would open up and swallow the downtown offices during working hours....
A proud non-subscriber for almost 20 years.
LOOSING SHARE ? TRY THE TRUTH !
This is late, but I will add it anyway, especially since I live very near to Chicago:
HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA, HA!!!!!!!!!
It couldn't happen to a finer liberal rag POS of a newspaper (unless one counts the Southtown Communist or the Red Star). ROFL!!!!!
I feel a lot better now.
You are ahead of the curve: "A proud non-subscriber for almost 20 years."!
It is never too late to laugh at the Left Wing Fish Wraps as they slither down their snake hole.
I will buy myself a bottle of White Star champagne the day they go under. It is hellish to live in this liberal infested area. God Bless FreeRepublic.
The ex and I subscribed for a few months back in 1987 before I got pissed and that's been it.
Admittedly, I have purchased from newstands and the grocery store the "Clinton Impeached" Slimes (couldn't resist) and probably less than a couple dozen Sunday papers since then.
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