Media General Inc., owner of several U.S. newspapers and TV stations, has announced it expects to generate less money from publishing, but will still beat analysts' estimates, Boston.com reported.

Chief Financial Officer John Schauss said the company expects its second quarter earnings from continuing operations of six cents to 10 cents per share, excluding 14 cents per share in severance costs.

Analysts, surveyed by Thomson Financial, forecast its earnings of six cents per share.

Media General expects its full-year earnings from continuing operations between US$1.35 and $1.45 per share, excluding the 14 cents of severance expense, though analysts forecast earnings of 94 cents per share.

Schauss said that the forecast is based on the scenario of no further economic deterioration in U.S. or Florida.

For the full year 2008, newspaper revenue is expected to decline between eight to 10 percent, while the broadcast sector is expected to generate more revenue around six percent to eight percent, mostly driven by political and Olympics advertising, according to Boston.com.

The company's interactive media division is also expected to bring in $3 million revenue, up about 40 percent.

Media General said last month that job cuts beginning in early 2007 will be realised by the third quarter and help trim operating costs. It will cut up to 750 positions, or nearly 11 percent.

According to President and Chief Executive Marshall N. Morton, the company “expects to recover the severance expense by the end of the third quarter in salary savings.”

Morton added the company is trying other ways to reduce expenses, including deferring capital spending, consolidating printing sites, centralising some graphics production and advertising functions and outsourcing customer service. He expressed confidence that the company will improve its financial status over time, Boston.com reported.

In Tuesday afternoon, Media General shares dropped 29 cents to $13.61. It has fallen from a 52-week high of $35.76 last June to a low of $12.96 in April.