Posted on 06/08/2004 8:30:53 AM PDT by Grampa Dave
Tribune falls after warning, downgrade
By Russ Britt, CBS.MarketWatch.com
Last Update: 11:01 AM ET June 8, 2004
LOS ANGELES (CBS.MW) -- Shares of Tribune Co. dropped 4 percent Tuesday in the wake of the newspaper publisher's warning on sales projections and a downgrade from a Wall Street analyst.
Chicago-based Tribune (TRB: news, chart, profile) fell $1.88 to $46.80 after the company said Monday it expects sales growth to be slower than expected within its publishing group and will have to take a $10 million to $15 million charge in the second quarter to make up for it.
That prompted A.G. Edwards analyst Michael Kupinski to downgrade Tribune stock to "hold" from "buy." Kupinski said, however, that Tribune's downside should be "limited."
"In our view, the likely catalyst toward higher stock valuations will be positive earnings surprises and sequential growth in quarterly revenues," Kupinski wrote in a note issued Tuesday. "Patient investors willing to wait an upturn in revenue growth at the company, which appears possible in a favorable economic environment, are encouraged to retain positions."
The publisher of the Los Angeles Times and Chicago Tribune said it will take the charge because it is reducing expense growth from 5.5 percent down to 3 percent. Tribune officials said, however, they still expect to fall within analyst estimates for the quarter.
Tribune is cutting 200 staff positions, undertaking newsprint conservation programs and reducing spending in all departments. Company officials said the growth plans that existed earlier in the year weren't meeting expectations.
"Although help wanted advertising is improving month-over-month, and preprints year-to-date are delivering strong growth, other advertising categories are not meeting the aggressive plans we had for the year," Jack Fuller, president of Tribune Publishing, said in a statement. "The shortfall is limited to a few newspapers, including the Los Angeles Times."
Tribune expects sales growth of roughly 4 percent for the full year.
The company put out its warning as it announced sales were up 3.2 percent for a roughly monthlong period ended May 23.
Russ Britt is the Los Angeles Bureau Chief for CBS.MarketWatch.com.
Don't forget the Slum Times and that marvelous Daily Defender.
My wife and her family are life long Cubs fans, and I sent my comments by email to her and her family. I will catch it to night. Actually, I'm more of a Cubs Fan than a Giants fan these days.
I think that the beginning of the end of the old media actually started during the Clintoon years, when so many of us conservatives tuned out and cancelled subscriptions.
Now we are seeing that tuning out/cancelling spreading.
You are incorrect about the pay/receive federal fund ratio.
Illinois, as with most wealthy states, pay far more into the fed treasury than it receives back. Your view of the state's economy is completely off the wall.
Thanks, this is an interesting statement by the Trib:
"Although help wanted advertising is improving month-over-month.....other advertising categories are not meeting the aggressive plans we had for the year,"......
Decoded, it says, "The job market and economy are improving in our area, but our advertising $'s outside of help wanted ads are going down."
"They've all been "feminazized." Like all public schools and universities. Lesbians and sissy-boys run the shows.
"Now they've taken over print media."
Lets hope that their arrogance and agendas that most Americans don't support, continue to drive away subcribers and advertisers.
It's been published in Crain's business annually for over TWENTY YEARS, put out by the State of Illinois Department of Economic Development.
They have also lost 50,000 full time jobs since the current Governor was sworn in Jan, 2003.
The State is one massive governmental program, I've been watching the decline for years. They have a 2.3 billion dollar deficit this year!
There only debate on how to get out of their mess is LEGALIZED GAMBLING. What a joke, the entire state knows it.
What is your perspective on the state and your sources?
I will borrow your tagline for awhile to honor President Reagan.
Good news about the Liebune and the LA Slimes!
It was a great newspaper when I was growing up, but I can't stand it now.
When did the Tribune become the Liebune?
We lived in the Chicago area in 1961 to 1962, and I recall it being somewhat liberal at that time.
No, it was conservative when I was growing up (late sixties through seventies). The editorial page was especially conservative, with exclusively conservative cartoonists every day (Dick Locher and Jeff McNally). I continued to buy it during the eighties. But by the time George HW Bush ran against Clinton, it was trashed.
I don't know that I'd call the Trib a liberal paper in the NYTimes, LATimes sense.
I don't think they've ever endorsed a Democrat for President since they've been around.
I am deeply saddened....NOT!
You and I share the same Not Deeply Saddened emotions about this.
Disney used to be a powerhouse, too, now it's trying not to get bought out by Comcast. You can only dump on the public and act snotty when you get caught lying for so long.
It's definately liberal and in more of a "yuppie/metrosexual" type of liberalism.
During gay pride weekend last summer, CLTV (the Trib's cable channel)had non-stop (24/7) coverage and profiles on the homosexual/lesbian community that is "Wrigleyville". I felt like puking when I saw it.
As for the Tribune's editorial section, every first Sunday in January they feature all the members of their editorial board. A couple of years ago I saw it and their was only one conservative to 12 liberals.
Jim (?) Warren is the Editor, he always represented the lefty point of view on MSNBC.
The trib is total trash, no in-depth or detailed reporting in their publication.
The 'do not call' lists are a big part of this. Telemarketing for newspaper subscriptions was a major way of getting new customers.
If they fired the writers who claim credit for form written "diversity" and gay marriage articles they could slash their labor budget 50%. I hope they tank.
Actually, I'm still worried, at least about the LATimes because they have an effective monopoly on our local market. (I'm not familiar with the Chicago Tribune or their other papers.)
The Sunday top/main article of the LAT was totally offensive. It should have been news about Reagan's passing and his life, but the 4th paragraph (you know, those 2 brief sentence "paragraphs") insulted all of our memories by editorializing that Clinton achieved more. Johanna Neuman is the author of that off-topic article.
It was so infuriating, we don't know if there was anything else in that day's paper. Maybe advertisers are recognizing that readers who don't turn past the top of page A1 won't see the expensive advertisements....
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