New York Times Earnings Slide

Earnings fell by half at the New York Times Co.(NYT Quote) in the third quarter, held back by surging paper prices and tepid ad growth.

The company turned a profit of $23.1 million, or 16 cents a share, in the quarter, compared with $48.3 million, or 33 cents a share, a year ago. The latest period included a layoffs charge of 5 cents a share and options-expensing costs of 1 cent a share. Total revenue rose 2.2% to $791.1 million.

Analysts surveyed by Thomson First Call were forecasting precharge earnings of 17 cents a share on sales of $787.8 million.

The Times' top line benefited considerably from the addition of About.com, which saw ad sales rise 67% in the quarter. At the parent, third-quarter advertising revenue rose 4% year over year, but only 1.3% when About.com is excluded. Excluding About.com, the company's gain in overall revenue falls from 2.2% to 0.4%.

In its New England Media Group, which publishes the Boston Globe, among other things, advertising revenue fell 2.8% in the quarter. The company blamed "continuing softness in the Boston economy."

The company's newsprint expense rose 3% in the third quarter, reflecting a 5.4% jump in prices and a 2.4% decline in consumption. Total costs and expenses excluding staff reductions, About.com, stock-based compensation, raw materials and depreciation and amortization increased 5.2%.

New York Times left full-year guidance intact for various volume and ad metrics. It sees total company advertising revenue rising in the low-single digits, while its newsprint cost per ton will be up 9% to 11%.