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McClatchy CEO: ‘We will work through this transition’
By Dale Kasler - dkasler@sacbee.com
Published 10:44 am PDT Tuesday, May 13, 2008

The McClatchy Co.’s chairman and chief executive tried to reassure shareholders Tuesday that the Sacramento publisher is on the right track despite falling profits, revenue and stock price.

Gary Pruitt, addressing the annual shareholders’ meeting in Sacramento, also said the company is open to selling its 49.5 percent share of the Seattle Times Co. It acquired the stake as part of the purchase of Knight Ridder Inc. in 2006.

Pruitt said he has told the Blethen family, which owns the rest of the Times Co., that it’s interested in selling the minority share at some point. McClatchy has repeatedly written down the value of its stake in the firm. It now values its share at $12.1 million, down from $19.3 million at the end of 2007.

“Long-term, we would be open to selling” the stake, Pruitt said in response to a shareholder’s question.

As for McClatchy overall, Pruitt acknowledged that he doesn’t know when the company’s decline in revenue will end. But he said McClatchy, by focusing heavily on Internet operations, is poised for recovery once the economy improves.

“We are confident we will work through this transition,” he said.

McClatchy has struggled with weakness in the economy and the ongoing migration of business to the Internet. Although its online revenue is up, it hasn’t grown fast enough to offset declines in print revenue.

McClatchy stock rose 5 cents a share, to $9.33, in trading on the New York Stock Exchange.