Scripps posts profit for third quarter
E.W. Scripps Co., owner of the Rocky Mountain News, posted higher third-quarter profit as newspaper advertising sales held up better than analysts expected.
Scripps’ profits rose on continued growth in its cable TV networks and in its new online shopping subsidiary, Shopzilla. The Cincinnati-based Scripps said earnings jumped 48 percent to $82.2 million in the quarter, or 50 cents per share, from $55.6 million, or 34 cents per share. Revenue rose 19 percent to $594.7 million.
The results included a $40.8 million cash payment resulting from a decision to discontinue publishing an afternoon daily in Birmingham, Ala.
Profit in Scripps’ newspaper division fell 23 percent to $41.6 million. The company attributed much of the decline to costs associated with combining production of the News and The Denver Post, which are published under a joint operating agreement. Scripps chief executive Kenneth Lowe said the consolidation will increase efficiencies and cost savings in the long term.
Puma, Ann Taylor to join new mall
Puma, Ann Taylor Loft, J. Jill, Acorn and Francesca’s Collection have signed on as tenants in Twenty Ninth Street, the redevelopment of Boulder’s former Crossroads Mall.
Project developer Westcor, a subsidiary of Santa Monica, Calif.-based Macerich Co., said all five retailers will be located in the central area of the property, which will feature several blocks of shops sandwiched by a Foley’s and a 16-screen Century Theatres complex.
First Data profits fall 8% in third quarter
First Data Corp. said Friday its third-quarter profit fell 8 percent, as the e-commerce and payment services company took charges that offset a revenue gain.
The Greenwood Village-based operator of Western Union stores reported net income of $421.5 million, or 54 cents a share.
That’s down from the prior year’s $460.6 million, or 54 cents a share. Shares outstanding were 765.5 million at the end of this year’s third quarter, a decrease from 829.8 million in the previous year.
Results for the latest quarter included charges of 7 cents for integrating Concord EFS Inc., which First Data bought in 2004, and for exiting the Encorus mobile payments business. The result also included a gain of 1 cent a share on the sale of First Data’s remaining stake in International Banking Technologies.
Wall St. hopes reports will overcome scare
Wall Street is hoping that this week’s cascade of corporate earnings reports will help the markets overcome an October scare prompted by increasing concerns that economic growth could skid to a halt.
Investors are still worried that the economy may not be able to sustain itself if high gasoline and heating costs prompt consumers to spend less just as companies opt to raise prices to cover their own rising costs.
It’s all but certain that the consumer will indeed have to cut back somewhat or else fall deeper into debt, and energy prices aren’t likely to fall substantially in the near future.
So it falls to America’s corporations to reassure Wall Street with third-quarter earnings reports and, more importantly, their forecasts for the fourth quarter and 2006.
Dow Jones industrials Alcoa Inc. and General Electric Co. saw strong earnings and decent forecasts, and retail sales reports for September were good.
Struggling Refco fights to keep its customers
Weighed down by an accounting scandal, a former chief executive under indictment and the possibility of serious trouble with the Securities and Exchange Commission, commodities broker Refco Inc. appears to be struggling to hold on to as many customers – and as much cash – as possible.
There was more evidence Friday that the $545 million accounting scandal in a Refco subsidiary that led to the arrest of ex-chief executive Phillip Bennett was spilling out into the company’s other businesses.
Credit rating agency Standard & Poor’s said the situation was getting so bad, the company was likely to default on its debt payments due to a lack of cash.
