NEW YORK (AP) _ McClatchy Co., a newspaper publisher based in Sacramento, Calif., is expecting lower profits in the first quarter of this year as advertising revenues soften and newsprint costs rise.
McClatchy said Wednesday it now expects to earn between 20 and 24 cents per share in the first quarter, well below the forecast of 34 cents expected by analysts surveyed by First Call/Thomson Financial. The company earned 35 cents per share in the same period a year ago.
McClatchy, which publishes the Star Tribune of Minneapolis, The Sacramento Bee and other newspapers, reported that consolidated advertising revenues for February declined 2 percent from the same month a year ago.
McClatchy joins a growing number of newspaper companies that have revised profit forecasts lower. Tribune Co. also warned investors late Wednesday of lower profits, and Dow Jones & Co., The New York Times Co. and Knight Ridder have all issued similar warnings.
McClatchy’s shares were off 51 cents to close at $38 Thursday amid an overall decline on the New York Stock Exchange.