Lee Enterprises reports 1Q profit down

Posted by Erina Lin on January 21, 2009 at 2:21 PM

Lee Enterprises Inc. announced its first-quarter earnings Tuesday, which showed its profit down 69 percent on an aggravated ad sales slump, The Associated Press reported.

Net income after paying preferred dividends decreased from US$22.1 million, or 48 cents per share, to $6.8 million, or 15 cents per share year-over-year.

Excluding a $2.2 million write-down for unused equipment and other items, earnings equaled 21 cents per share in the period. The results are "preliminary and don't include the potential impact of impairment charges," according to the company.

Revenue was down 13 percent to $243.6 million, mostly due to the 15 percent decline on advertising sales, which accounted for $184.6 million in the quarter. Employment ad sales plummeted about 44 percent, real estate ads were down 30 percent and auto ads lost more than 26 percent, according to the AP article posted on Google.

The company is slashing costs by laying off more than 10 percent of its staff during the quarter. More cuts will be announced soon, according to Chairman and Chief Executive Mary Junck in a statement.

Lee Enterprises has also outsourced or combined some of its printing and distribution operations, the AP reported.