Tribune reports $1.82 billion gain

May 9, 2008

Tribune Co. reported a first-quarter gain of $1.82 billion from continuing operations yesterday because of a change in tax status but said revenue declined 8 percent as newspaper ad sales continued to slump. The tax-related gain compared with first-quarter earnings of $11 million a year ago. It resulted almost entirely from an income tax adjustment of $1.86 billion related to the company's change in tax status at the beginning of the year to a subchapter S corporation. Tribune, however, had a loss from continuing operations before income taxes of $30 million - down from income of $31 million in the same period of 2007. "Print ad revenues continue to be challenged by the weak economy's impact on real estate and classified advertising," Chairman and Chief Executive Officer Sam Zell said.