New York Times Co today said fourth-quarter earnings would be weaker than Wall Street forecasts because the broad deterioration in the US economy that followed the September 11th attacks hurt advertising.
The publisher of the
New York Times
,
Boston Globe
and other papers said it expects to earn 48 to 52 cents per share in the fourth quarter, well down from the 68 cents per share earned a year earlier.
The company had not previously provided a forecast for the quarter, but Wall Street analysts had been looking for the Times to earn 54 to 67 cents per share, with a mean estimate of 59 cents, according to research firm Thomson Financial/First Call.
"The economy should begin rebounding in the second half of next year," the Times said, adding it may be able to generate earnings growth then at a mid-single digit to high-double digits rate. Even if no recovery takes hold, the company said it still believes modest earnings growth is possible.
The New York Timeslike other media groups, has suffered through a year-long advertising drought that grew worse after the September 11th attacks on the US. The cost of covering the events and the subsequent drop in advertising has hurt sales and profits across the sector.