New York Times Co reports surprising second quarter profit

NEW YORK -- The New York Times Co. said Thursday its second-quarter profit climbed nearly 85 percent, as it cut costs aggressively to deal with a worsening decline in advertising. Its stock jumped in premarket trading.

The company said it cut its operating costs by 20 percent to manage the revenue falloff, following a pattern that also emerged in recent earnings reports from fellow newspaper publishers Gannett Co. and McClatchy Co.

The publisher of The New York Times, The Boston Globe, The International Herald-Tribune and 15 other daily newspapers said Thursday that it earned $39.1 million, or 27 cents per share, from April through June. That compares with a profit of $21.1 million, or 15 cents per share, in the same quarter a year ago.

The company was helped by a favorable tax adjustment, which boosted earnings by $37.7 million, or 26 cents per share.

But even after one-time events, the company said it would have earned 8 cents per share. On that basis, analysts polled by Thomson Reuters expected a loss of 4 cents per share.

Times Co. revenue fell 20 percent to $584 million. Analysts were expecting $603 million.

Advertising revenue plunged 30 percent from the second quarter of 2008. The Times Co. had seen a 27 percent year-over-year decline in the first quarter, leading to a net loss of $74.5 million.

Times Co. shares were up 88 cents at $7.50 in trading before the market opened.