Times Mirror Co., owner of The Sun and The Evening Sun, said yesterday that profits from continuing operations fell slightly in the final three months of 1994 compared with a year earlier, and likely would remain low in this year's first quarter.
The company's stock fell $3.125 a share to finish the day at $20.25 in heavy trading.
The news contributed to a mixed picture in the newspaper industry. Earlier this week, Knight-Ridder Inc. reported its profits rose by nearly 4 percent, while the Washington Post Co. said its fourth-quarter profits rose by 23 percent. All three companies' stock prices have fallen this week, as investors worry that higher newsprint costs will reduce profits.
The Los Angeles-based publishing company, which also owns magazines, book publishers, and newspapers, including the Los Angeles Times and Newsday in New York, said profits from continuing operations dropped to $46.9 million in the three months that ended Dec. 31, from $50.2 million in the comparable period of 1993.
The company reported net earnings of $52.7 million in the most recent quarter, down from $161.8 million in the final quarter of 1993. Net income figures included the impact of one-time charges and gains in both years, including the sale of television stations and the retirement of debt. Revenue in the latest quarter increased to $957.4 million from $897 million a year earlier.
Company Chairman Robert F. Erburu said yesterday that the first quarter was traditionally the company's weakest, and that he expected "continuing operations to show a decline from last year's low levels." Contributing to the lower profits, he said, were planned investments in electronic information ventures, and the jump in newsprint prices.
For the year, the company reported income from continuing operations of $115.6 million, up from $99.4 million, in 1993. Sales rose to $3.4 billion from $3.2 billion.
Mr. Erburu said Times Mirror, which completed the sale of its cable operations to Cox Communications Inc. on Jan. 31, expects to report a $1.6 billion gain in the first quarter from the deal.
Times Mirror Co.
Los Angeles ... ... ... ... Ticker ... ... ... Yesterday's
... ... ... ... ... ... ... Symbol ... ... ... Cls. ... ... Chg.
... ... ... ... ... ... ... TMC .. ... ... ... 20 1/4 .. .. .. -3Period ended
12/31 ... ... ... ... .. .. 4th qtr. ... .. .. Year ago ... ... Chg.
Revenue ... ... ... ... ... $957,382 ... .. .. $897,066 ... ... +6.7%
Net Income ... ... .. .. .. $52,723* ... .. .. $161,806** .. .. -67.4%
Primary EPS .. ... .. .. .. $0.41 ... .. .. .. $1.26 ... ... .. -67.5%
... ... ... ... ... ... ... 12 mos. ... ... .. Year ago ... ... Chg.
Revenue ... ... ... ... ... $3,357,450 ... ... $3,243,749 .. .. +3.5%
Net Income ... ... .. .. .. $173,117* .. .. .. $317,159** .. .. -45.4%
Primary EPS .. ... .. .. .. $1.35 ... .. .. .. $2.46 ... ... .. -45.1%
* Includes a charge to earnings of $12.2 million stemming from the early retirement of debt.
** Includes a gain of $131.7 million on the sale of television stations.
Figures in thousands (except per share data)