Earnings: Gannett Prelim Q4 Results Show Profits Drop 36 Percent, Billions In Charges

This story was written by David Kaplan.
Gannett (NYSE: GCI) released its preliminary earnings and the news was just as poor as the rest of its newspaper industry peers. Profits fell 36 percent to $158 million EPS was $0.69 per share versus $1.06 per share last year. Part of that was due to $56 million in pre-tax severance expenses ($36.1 million after tax or $0.16 per share) related to the 3,000 layoffs across its 80 local papers during the quarter. Overall, the company's total charges are expected to range from $4.5- to $5.2 billion after taxes due to the economic downturn. Revenues on preliminary basis fell 10.5 percent to $1.7 billion from $1.9 billion. More to come

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By David Kaplan