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Gannett sees 2Q on target
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June 19, 2001: 11:55 a.m. ET
CEO of largest U.S. newspaper publisher says results in line despite ad slump
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NEW YORK (CNNfn) - Gannett Co. CEO Douglas McCorkindale said Tuesday the nation's largest newspaper publisher expects second-quarter earnings to be line with Wall Street forecasts despite the continued slump in newspaper advertising sales.
Gannett shares jumped on the news, rising $2.77 to $63.50 in morning trading on the New York Stock Exchange
McCorkindale, speaking at the Mid-Year Media Review in New York, said he sees second-quarter results for Gannett (GCI: Research, Estimates) -- the publisher of USA Today and 99 other U.S. daily newspapers – to be between 86 cents and 90 cents a share, but lower than $1 a share a year earlier. Analysts forecast 91 cents a share, according to earnings tracker First Call.
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"Our toughest year-to-year comparisons for our newspapers are behind us," McCorkindale said. But he remained cautious on his outlook. "We do not have good visibility on what the second half of 2001 will bring," he said.
A slowing economy has forced many publishers to trim costs and eliminate thousands of jobs as advertising spending continues to fall. Four of the biggest U.S. media companies reported declining advertising sales Monday that are cutting into the industry's profits. 
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