Publisher Knight Ridder(KRI Quote) will badly miss third-quarter earnings estimates because of rising raw material costs and a sluggish advertising market, particularly in the automotive sector.
The company sees third-quarter earnings from continuing operations of about 65 cents a share, well short of the Thomson First Call consensus estimate of 89 cents. The updated guidance reflects a 20% decline from Knight Ridder's year-ago continuing-operations number of 81 cents a share, excluding a gain.
A 9.1% year-over-year increase in newsprint costs is driving the decline. Meanwhile, total advertising in August is up just 1.2% from August 2004, as solid gains in help wanted and real estate were mostly offset by a 9.5% decline in automotive advertising. ...
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