The U.S. newspaper industry continues to suffer, as advertising declines have dragged profits down and resulted in more job cuts.

The Washington Post Co. said fourth-quarter profit dropped 13 percent, mostly due to declining print ad sales and costs to reorganise some units such as Kaplan education group, the Los Angeles Times reported last week.

The Washington Post Co.'s net income decreased to US$82.9 million, or $8.71 a share, from $95.5 million, or $9.97, in the same period one year ago. Sales were up 8.1% percent to $1.13 billion. Its shares fell $2.63 to $723.37, and have dropped 6 percent in 2007, according to a Los Angeles Times report posted by MediaInfoCenter.

Another newspaper company, McClatchy Co., reported a 14 percent fall in sales in January and predicted similar performance for the remainder of the quarter for its 30 daily titles.

Chief Financial Officer Pat Talamantes said that the company is experiencing the effect of "worsening economic trends." Its January revenue totaled $176.8 million, as ad sales declined 16 percent to $145.5 million. McClatchy shares slid 25 cents to $10.12 and have plunged 73 percent in the last year, according to the article.

In addition, The Newspaper Guild of Greater Philadelphia announced that Philadelphia Media Holdings has cut 68 workers in advertising, circulation, customer service, finance, marketing and systems. The union said only a "very small" number of managers will be laid off, the Los Angeles Times reported.

A spokesman for Philadelphia Media Holdings said the weak advertising market forced the company to make cuts, according to the article posting on MediaInfoCenter.