To: gamesmistress who wrote (72038 ) 9/20/2004 7:04:21 PM From: Brian Sullivan Respond to of 793851 New York Times Co. Lowers Outlook New York Times Co. Lowers Full-Year Earnings Forecast; Says Quarterly Results Will Fall Shortprinterfriendly.abcnews.com NEW YORK Sept. 20, 2004 — The New York Times Co. warned investors Monday that its third-quarter earnings would fall below Wall Street estimates because of slower-than-expected growth in advertising in September. The company also lowered its full-year forecast. The news sent the company's stock price down 55 cents, or just over 1 percent, to $40.25 in morning trading on the New York Stock Exchange. The publisher, which also owns The Boston Globe and The International Herald Tribune, said that 2004 costs would come in at the high end of estimates because of expenses related to covering the election, the launch of new editorial products and hurricane damage to its properties in the Southeast. The company now expects to earn between 30 cents and 33 cents per share in the third quarter, compared with the 35 cents per share that analysts surveyed by Thomson First Call had been expecting. The publisher also lowered its estimate for full-year earnings, saying it now expected to earn at or below the $1.98 per share it reported in 2003, compared with its previous estimate of growth in the low to mid-single-digit percentage range. Analysts had been expecting $2.03, according to Thomson First Call. Leonard P. Forman, the Times' chief financial officer, said in a prepared statement that "September's performance to date, which has been negatively affected by the timing of the Labor Day weekend (normally a period of reduced advertising), has failed to demonstrate the kind of consistent revenue growth we had been looking for as we reach the fall." The company also reported that August advertising revenue rose 7.8 percent and total company revenue increased 3.5 percent from a year earlier. August advertising revenue at the New York Times Media Group, which includes flagship The New York Times and The International Herald Tribune, rose 6.9 percent from a year earlier. National ad revenue grew as strength in American fashion and entertainment offset softness in transportation, media and financial/insurance advertising, the company said. The Times benefited significantly from "T" Style Magazine, its redesigned special section of The New York Times Magazine, which debuted on Aug. 29. In addition, The Times saw increased advocacy advertising due to the Republican National Convention in New York. Retail advertising revenue also rose as growth in department store advertising offset weak home furnishing store advertising. Classified ad revenue rose during the month with strength in all major categories.