Loss lessens for parent of Post-Dispatch
Post-Dispatch parent Lee Enterprises reported a narrower loss in its fiscal second quarter thanks to smaller writedowns on the value of its assets. But revenue fell sharply on weak advertising, and the company said it plans more cost-cutting.
The publisher, based in Davenport, Iowa, lost $51.8 million in the quarter, including writedowns and charges to refinance debt. Absent one-time costs, Lee lost $2.9 million, or 7 cents a share, compared to a $4.2 million profit in the same period last year.
Revenue fell 20 percent because of weak advertising demand, though the company said revenue declines have "flattened over the last three months check cash advance."
To deal with the falling revenue, Lee upped its cost-cutting targets for the year by about $20 million, and now plans to pare 16 percent from its 2008 budget, or about $120 million. In March it had a target of 13 percent.