NY Times Dying a Slow Death

The New York Times reported worse-than-expected results on Thursday as advertisers cut spending on both print and digital outlets, sending shares down 12 percent. The newspaper company said that revenue was up almost 1 percent to $449 million. Still, the result missed the analysts' consensus estimate of $479.23 million, according to Thomson Reuters I/B/E/S.

Adjusting for severance costs and other special items, the company reported a quarterly loss of 1 cent per share, well below expectations of earnings of 8 cents per share. The slight uptick in revenue was due to a 7.4 percent rise in circulation revenue helped by the company's digital subscription plans.

But as the company tries to rely more on circulation for its revenue, advertising sales are in a persistent slump. "It wasn't a nice quarter on revenue," said Edward Atorino, an analyst with Benchmark Co. "The advertising numbers look terrible. I thought they might do a little better. They are caught up in the downslide like everybody else." Read more >>

DuPont and United Technologies plan massive job cuts

Foxbusiness.com
Faced with weakening revenue, two big companies warned on Tuesday that they would cut jobs as a way of protecting their profits. DuPont Co said it planned to lay off about 1,500 workers - roughly 2% of its global headcount - as the chemical company grapples with weakening demand from the construction and renewable energy sectors.

United Technologies Corp did not specify the magnitude of the cuts it was considering but said it would raise its full-year restructuring budget by 20% to $600 million as demand for its military equipment declines. Both companies reported weaker-than-expected sales for the third quarter, following an overall trend.

Of the companies in the broad Standard & Poor's 500 index that had reported results for the quarter as of Monday, 62% came in below analysts' revenue forecasts - well above the 38% sales-miss rate in a typical earnings season, according to Thomson Reuters I/B/E/S.

"Obviously we're looking carefully at the macro environment," United Tech Chief Executive Louis Chenevert told Reuters. "In Europe, the economy continues to be very sluggish, and in North America, it's a slow recovery.

DuPont and United Tech are by no means the only big U.S. companies to begin cutting jobs. Most dramatically, chipmaker Advanced Micro Devices said last week that it would reduce its 12,000-person workforce by 15% as it copes with weak demand and a consumer shift towards tablet computers.

Engine maker Cummins Inc , the PayPal arm of eBay Inc and for-profit college operator Apollo Group Inc announced smaller rounds of cuts earlier this month. Read more >>