Cost cutting and a tax adjustments have helped newspaper publisher McClatchy Co. in its third-quarter earnings, at a time when its advertising revenue has plunged, The Associated Press reported.

The publisher of The Miami Herald and 29 other dailies had its Shares up in the quarter, as investors believed that the toughest time of the recession were over for the newspaper industry.

The company's quarterly profit improved from US$4.2 million, or 5 cents a share, one year ago, to $23.6 million, or 28 cents per share, according to the AP article posted on Google News.

However, some of the big profit increases resulted from a tax rate adjustment. Excluding one-time gains, McClatchy would have earned $11 million, or 13 cents per share, versus $10.4 million, also 13 cents per share, in the same period last year on a comparable basis. McClatchy's revenue was down 23 percent to $347 million, and its advertising downturn did not slow down much in the third quarter. McClatchy's ad sales were down 28 percent in the third quarter after a 30 percent drop in the first half of the year.

"The advertising declines we've experienced show some signs of slowing, but the ad environment remains weak overall," McClatchy CEO Gary Pruitt said in a statement.

On a positive note, online advertising rose 3 percent year-over-year, the AP reported.