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Decline In Ad Sales Causes Loss For Sun-Times

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Mar 11, 2008 8:40 pm US/Central

Decline In Ad Sales Causes Loss For Sun-Times

CHICAGO (Sun-Times Media Wire) ― Sun-Times Media Group Inc. reported a wider fourth-quarter loss because of declining advertising sales and costs related to job cuts.

The net loss of $59.1 million, or 73 cents a share, compares with a loss of $34.6 million, or 43 cents, a year earlier, the publisher of the Chicago Sun-Times and dozens of daily and weekly suburban newspapers reported Tuesday. The loss included $6.4 million in severance-related costs.

Sales in the quarter fell 15 percent to $93.3 million.

For the year, the company swung to a profit of $271.6 million, $3.37 a share, compared to a loss of $56.7 million, 66 cents per share, in 2006 — due mainly to a benefit from a Canadian tax settlement. Revenue fell 11 percent to $372.3 million.

"The company has moved vigorously to address its financial challenges, including starting an aggressive cost-reduction plan," said Cyrus F. Freidheim Jr., president and chief executive officer.

A program to reduce costs by $50 million, disclosed in December, is expected to be completed by June 30.

Last month, Sun-Times Media Group hired investment banking firm Lazard to help evaluate offers to buy the company in whole or part and assess other methods to increase shareholder value.

(Source: Sun-Times Media Wire © Chicago Sun-Times 2009. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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