Apr 12, 2006 8:28 am US/Central
Gannett Reports Profit Hit
NEW YORK (AP) ―
Gannett Co., the largest newspaper publisher in the country, reported Wednesday an 11.5 percent decline in profit for its first quarter as the company began expensing stock options and recording costs from its new newspaper partnership in Detroit.
Gannett earned $235.3 million, or 99 cents per share, in the thirteen weeks ending March 26, down from $265.7 million, or $1.05 per share, in the same period a year ago, which included 2 cents per share profit from discontinued operations.
The results were in line with the forecasts of analysts polled by Thomson Financial, and include a non-cash expense of 3 cents per share in the latest quarter from stock option expenses, which the company began recording in the first quarter as required by accounting rules.
Revenues rose 6.5 percent to $1.88 billion from $1.77 billion in the same period a year ago.
The increase was mainly due to the consolidation of the Detroit Free Press, which it acquired from Knight Ridder Inc. in August of last year and then combined into a partnership with The Detroit News, which MediaNews Group Inc. bought from Gannett.
Excluding the Detroit transaction other newspaper deals, Gannett's revenues would have edged down 0.5 percent in the quarter from the same period a year ago.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Click to enlarge
Stumble It!
