The New York Times Company's profits dropped 51.4 percent in the third quarter of 2008 compared to the same time last year, the company announced, The New York Times reported Thursday.

The U.S. publisher stated will write down the value of its assets in its New England Media Group, and may also cut its dividend. Janet Robinson, company's chief executive, said in a statement that the board of directors will go over the current dividend policy before the end of 2008 “to determine what is most prudent in light of the overall market conditions.”

Continuing operations fell by US$2.1 million, or 1 cent per share, compared to last year's $19 million in profits. The loss might be a consequence to the company's US$12.8 million tax bill in 2008, compared to 2007's US$9 million. After-tax severance costs amounted to 6 cents a share, higher than the predicted 4 cents a share. The net income added up to $6.5 million, compared to last year's US$13.4 million, The New York Times reported.

Advertising revenue from print newspapers, which constitutes the majority of the company's profits, decreased by 18.5 percent in the third quarter this year. Reasons include the economic difficulties across the country and the continuing move of papers away from print. According to The New York Times, the industry is experiencing the “worst period since the Depression.”

Internet revenue jumped slightly by 2.5 percent for the firm's papers like the NYT, The Boston Globe, The International Herald Tribune and 17 other smaller titles. Other online ventures like About.com increased by nearly 16 percent.

The New York Time Co.'s operating profit plummeted by nearly 65 percent from $28.1 to $10 million since 2007. Operating costs fell by 6.8 percent to $677 million, while total revenue fell by 8.9 percent to $687 million.

Annual expense reductions will also be more than the expected, from $130 million in 2008, to $230 million for 2009. Severance costs also surged from $40 million to $50 million for 2008, according to The New York Times. Previous savings predictions did not take into account the company's recent move to close down its City & Suburban unit, which delivers publications in metropolitan New York. The firm refused to say how much it would be recovering from the shut down, planned for January 2009, The New York Times reported.