Cascades withstands perfect storm of price increase and low fibre generation
http://www.cbc.ca/cp/business/070510/b0510103A.html
MONTREAL (CP) - Packaging company Cascades Inc. (TSX:CAS) recorded a first quarter profit after surviving a "perfect storm" that saw Asian demand dramatically boost recycled fibre costs in light of a seasonal North American slowdown in material generation.
The price of recycled fibre, which represents 75 per cent of Cascades' fibre input, more than doubled after Christmas to US$150 a tonne. It has now settled at US$90.
"Old recycled fibre, whether it be corrugated cardboard or office paper, all categories skyrocketed," president and CEO Alain Lemaire told a news conference Thursday following the company's annual meeting.
The change cost Cascades $33 million in the quarter. Yet it earned $22 million, or 22 cents a share for the period ended March 31, thanks to special items such as proceeds from the sale of a U.S. boxboard plant.
That compared with seven cents a share when it made $6 million a year earlier.
Excluding one-time items, Cascades earned $5 million in the quarter, down $1 million from 2006. The five-cent earnings were below market expectations.
Continue Article
The impact of the fibre cost increase was severe because the world's ninth largest user of recycled paper consumes 2.5 million tonnes of the waste per year.
Asian demand, particularly from China, surged when producers looked to build inventory before starting up large new mills.
Analyst Pierre Lacroix of Desjardins Securities called the confluence of Asian demand and weaker North American generation a perfect storm that will weaken in the coming months.
"The results in the first quarter were impacted by one-time items or temporary factors such as waste paper price surge," he said in an interview.
"At the same time product prices are going up in boxboard, container board and tissue, so the end products are healthy, prices are rising and you have a softening of the cost pressure."
Cascades' diversified portfolio should help it confront the pulp and paper industry's ongoing challenges of weaker demand, Lemaire said.
"We are lucky to be in different sectors that will be more equal," he told reporters.
Looking ahead, Lemaire said he expects continued challenges as the company moves ahead this year, but it will focus on growing its business and keeping costs under control.
"We intend to evaluate our assets and remain on the lookout for acquisitions that allow us to reinforce our position in our best sectors," he told shareholders.
"We clearly demonstrated in 2006 that we could adapt and excel in difficult business conditions and we will continue to do so."
Cascades said it had one-time gains in the quarter, notably a $25-million gain before taxes on the January sale of its 40 per cent interest in GSD Packaging to Rock-Tenn Co. for US$32 million.
The company also benefited from its move to acquire the other half of its former joint-venture unit Norampac, Canada's largest cardboard producer, from Domtar (TSX:DTC).
But it was also hit by a boiler failure that shut down production at its coated recycled boxboard mill in Toronto.
Quarterly revenues jumped to just over $1 billion for the first time, from $818 million.
Cascades' drive to be an industry leader on the environmental front was marked last quarter by the launch of a degradable polystyrene foam tray. Popular Quebec restaurant chain St. Hubert has become among its first customers for takeout containers.
Lemaire said the company continues to prove that pushing sustainable development can also be profitable.
"If some companies rush to adopt responsible behaviour, Cascades can boast to them that it has been green for more than 40 years," he told shareholders.
Founded in 1964, Cascades produces packaging and tissue products composed mainly of recycled fibres. The company employs nearly 14.000 people at 100 mills and production centres in North America and Europe.
The board of directors declared a four-cent quarterly dividend to be paid June 14.
On the Toronto Stock Exchange, Cascades shares gained 26 cents to $11.97 in Thursday trading.
© The Canadian Press, 2007
Friday, May 11, 2007
Tuesday, May 08, 2007
NewPage reports $20M 1Q loss
NewPage reports $20M 1Q loss
Dayton Business Journal - 10:13 AM EDT Monday, May 7, 2007
Paper company NewPage Corp. posted a $20 million loss in the first quarter on lower sales.
Sales were down 6 percent to $476 million from $507 million in first quarter 2006, the company reported Monday.
The loss, however, was narrower than the $60 million loss in the same quarter last year.
Volume and price were down as the company continued to see negative effects of imports of coated paper from China, Indonesia and South Korea, said Mark Suwyn, chief executive officer and chairman.
The Dayton company filed petitions with the U.S. Department of Commerce and U.S. International Trade Commission last year seeking antidumping and countervailing taxes on coated paper imports from the three countries. Countervailing taxes help restrict international trade where imports are subsidized by a foreign country and hurt domestic producers. Dumping happens when a country exports a significant amount of goods at prices much lower than in the domestic market.
The commerce department imposed preliminary countervailing taxes on the countries in March. An answer on the dumping cases is expected this month.
"We are willing to compete with anyone in the world as long as we have a level playing field," Suwyn said.
NewPage has been planning an initial public offering since 2006 but has yet to go public. The company has about 4,300 employees, including 250 at its Dayton headquarters. The company produces coated paper at plants in Michigan, Maryland, Maine and Kentucky.
Dayton Business Journal - 10:13 AM EDT Monday, May 7, 2007
Paper company NewPage Corp. posted a $20 million loss in the first quarter on lower sales.
Sales were down 6 percent to $476 million from $507 million in first quarter 2006, the company reported Monday.
The loss, however, was narrower than the $60 million loss in the same quarter last year.
Volume and price were down as the company continued to see negative effects of imports of coated paper from China, Indonesia and South Korea, said Mark Suwyn, chief executive officer and chairman.
The Dayton company filed petitions with the U.S. Department of Commerce and U.S. International Trade Commission last year seeking antidumping and countervailing taxes on coated paper imports from the three countries. Countervailing taxes help restrict international trade where imports are subsidized by a foreign country and hurt domestic producers. Dumping happens when a country exports a significant amount of goods at prices much lower than in the domestic market.
The commerce department imposed preliminary countervailing taxes on the countries in March. An answer on the dumping cases is expected this month.
"We are willing to compete with anyone in the world as long as we have a level playing field," Suwyn said.
NewPage has been planning an initial public offering since 2006 but has yet to go public. The company has about 4,300 employees, including 250 at its Dayton headquarters. The company produces coated paper at plants in Michigan, Maryland, Maine and Kentucky.
Friday, May 04, 2007
Analysis: paper
Analysis: paper
Helen Morris, printweek.com, 22 March 2007
http://www.printweek.com/paper/news/645623/Analysis-paper/
Industry braces for yet more increases, with 15% rises on the cards.
Come September, printers could be paying 15% more for paper. March has brought a rise in paper prices of up to 8% and there is no obvious sign of a let-up.
A few years ago, price rises were described as unpredictable, which some say made things worse. Now they’ve become a bi- or even tri-annual event printers have to factor in.
This month’s increase has been blamed on a fall in capacity following the closures of loss-making mills and equally rising energy and pulp costs, which have conspired to drive manufacturers to raise prices.
Many in the industry feel that the price increases will continue this year. Freddie Kienzler, managing director of Essex-based commercial printer Formara, says paper costs are certainly an important factor for any print business. He cites as an example his firm, which has already had two increases this year on business papers and one on other stocks. Kienzler adds that printers are also being warned of further increases later this year. He says: “That is potentially a 15% rise during 2007. I don’t know of any printer that can pass that 15% on to their customers.”
Prepared for worse
Alasdair Browne, managing director of trade stationery printer Abbot Print in Hemel Hempstead, agrees. He says that day-to-day, he needs to deal with the reality of the situation, and believes the price rises will continue year on year. Those tied into contracts to print a particular product over a period of time need to have put a caveat in place. “It needs to say they can then pass on the cost of a paper increase. Those that have not got this, or are unable to make their customer appreciate this, are going to suffer.”
Many believe that mills are just reacting to a decline in the market and shutting operations and switching capacity.
Browne says mills need to work at marketing and advertising paper. “We all hear of the paperless office, but nothing is being done to promote paper to the end-user and reverse this trend.”
For example, he says that carbonless is a far cheaper and quicker way of producing month-end statements for a medium-sized company than reams of blank A4 and loads of ink cartridges and this should be promoted.
Cost-effective
He adds that he believes there is no concerted effort to respond and suggest that pre-printed is actually more cost effective and better quality. “They have something to sell, so sell it. Carbonless should be a good news story. At the very least, the mills should promote the particular product.”
Kienzler says that stability is a another issue that needs to be addressed. “How about customers who are willing to pay a little more for a service that offers something a cut above the usual. Now, that would make a change.”
But there could be light at the end of the tunnel.
One commercial printer thinks the number of increases cannot continue in the next couple of years, blaming the mills for creating an artificial shortage in order to boost prices. He says: “If they go up too much, then Far Eastern mills will all of a sudden be interested in supplying Europe again and the prices will have to fall.”
Browne says the simple answer is to help the mills pass on the costs. He would be happier with a price increase if it was part of a broader strategy that included marketing what printers and mills sell. He says: “Unfortunately, the reality is that mills will reactively cut costs and increase prices in a downturn, not proactively spend on marketing to reverse it. How many other industries have this approach and survive?”
Helen Morris, printweek.com, 22 March 2007
http://www.printweek.com/paper/news/645623/Analysis-paper/
Industry braces for yet more increases, with 15% rises on the cards.
Come September, printers could be paying 15% more for paper. March has brought a rise in paper prices of up to 8% and there is no obvious sign of a let-up.
A few years ago, price rises were described as unpredictable, which some say made things worse. Now they’ve become a bi- or even tri-annual event printers have to factor in.
This month’s increase has been blamed on a fall in capacity following the closures of loss-making mills and equally rising energy and pulp costs, which have conspired to drive manufacturers to raise prices.
Many in the industry feel that the price increases will continue this year. Freddie Kienzler, managing director of Essex-based commercial printer Formara, says paper costs are certainly an important factor for any print business. He cites as an example his firm, which has already had two increases this year on business papers and one on other stocks. Kienzler adds that printers are also being warned of further increases later this year. He says: “That is potentially a 15% rise during 2007. I don’t know of any printer that can pass that 15% on to their customers.”
Prepared for worse
Alasdair Browne, managing director of trade stationery printer Abbot Print in Hemel Hempstead, agrees. He says that day-to-day, he needs to deal with the reality of the situation, and believes the price rises will continue year on year. Those tied into contracts to print a particular product over a period of time need to have put a caveat in place. “It needs to say they can then pass on the cost of a paper increase. Those that have not got this, or are unable to make their customer appreciate this, are going to suffer.”
Many believe that mills are just reacting to a decline in the market and shutting operations and switching capacity.
Browne says mills need to work at marketing and advertising paper. “We all hear of the paperless office, but nothing is being done to promote paper to the end-user and reverse this trend.”
For example, he says that carbonless is a far cheaper and quicker way of producing month-end statements for a medium-sized company than reams of blank A4 and loads of ink cartridges and this should be promoted.
Cost-effective
He adds that he believes there is no concerted effort to respond and suggest that pre-printed is actually more cost effective and better quality. “They have something to sell, so sell it. Carbonless should be a good news story. At the very least, the mills should promote the particular product.”
Kienzler says that stability is a another issue that needs to be addressed. “How about customers who are willing to pay a little more for a service that offers something a cut above the usual. Now, that would make a change.”
But there could be light at the end of the tunnel.
One commercial printer thinks the number of increases cannot continue in the next couple of years, blaming the mills for creating an artificial shortage in order to boost prices. He says: “If they go up too much, then Far Eastern mills will all of a sudden be interested in supplying Europe again and the prices will have to fall.”
Browne says the simple answer is to help the mills pass on the costs. He would be happier with a price increase if it was part of a broader strategy that included marketing what printers and mills sell. He says: “Unfortunately, the reality is that mills will reactively cut costs and increase prices in a downturn, not proactively spend on marketing to reverse it. How many other industries have this approach and survive?”
The First Coated Paper Made With 100% Post-Consumer Waste
New Leaf Paper Sets New Environmental Standard With New Leaf Sakura 100 - The First Coated Paper Available In The U.S. Made With 100% Post-Consumer Waste
San Francisco, CA - New Leaf Paper has set a new environmental standard with the national launch of New Leaf Sakura 100, the first coated paper manufactured from 100% post-consumer waste (PCW). Most recycled coated papers in the U.S. fall well below this standard, containing only 10% to 30% PCW. New Leaf Paper set the previous standard with their product lines New Leaf Reincarnation Matte and New Leaf Primavera Gloss and Silk, made with 50% PCW and 40% PCW respectively.
New Leaf Sakura 100 is the latest in a long history of environmentally superior product innovations at New Leaf Paper, a company well respected for its leadership in driving sustainability in the paper industry. New Leaf Sakura 100 is praised for exceptional printability and detailed imagery reproduction. "Sakura 100 has a beautiful surface quality," says Jeff Mendelsohn, President of New Leaf Paper. "Designers like the sheet because of its ability to reproduce vibrant photography and graphic imagery, and printers appreciate how well it runs on press."
Environmental attributes of New Leaf Sakura 100 reflect New Leaf Paper's holistic approach to sustainability:
100% post-consumer waste, which preserves forests and reduces landfill and greenhouse gas emissions
Processed chlorine free, which helps keep rivers free of poisonous bleaching products
Designated Ancient Forest Friendly, which reflects the highest environmental standard in North America
Manufactured with 100% Green-e certified renewable wind energy, which helps reduce the nation's output of the greenhouse gases that cause global warming
Designated ANCIENT FOREST FRIENDLY, the environmental gold standard Ancient Forest Friendly represents the most comprehensive standards for environmental responsibility in the paper industry. To earn the Ancient Forest Friendly (AFF) designation, a paper must be manufactured with a high percentage of post-consumer waste and not contain any virgin fiber from old-growth, ancient or endangered forests. If there is virgin fiber in the paper, it must be both FSC certified and assessed to not originate from endangered forests. This coveted designation was created by Markets Initiative (http://www.marketsinitiative.org/), an organization instrumental in stimulating the market for environmentally responsible papers, which in turn has had measurable benefits to human health and the biodiversity of forests.
SOURCE: New Leaf Paper
San Francisco, CA - New Leaf Paper has set a new environmental standard with the national launch of New Leaf Sakura 100, the first coated paper manufactured from 100% post-consumer waste (PCW). Most recycled coated papers in the U.S. fall well below this standard, containing only 10% to 30% PCW. New Leaf Paper set the previous standard with their product lines New Leaf Reincarnation Matte and New Leaf Primavera Gloss and Silk, made with 50% PCW and 40% PCW respectively.
New Leaf Sakura 100 is the latest in a long history of environmentally superior product innovations at New Leaf Paper, a company well respected for its leadership in driving sustainability in the paper industry. New Leaf Sakura 100 is praised for exceptional printability and detailed imagery reproduction. "Sakura 100 has a beautiful surface quality," says Jeff Mendelsohn, President of New Leaf Paper. "Designers like the sheet because of its ability to reproduce vibrant photography and graphic imagery, and printers appreciate how well it runs on press."
Environmental attributes of New Leaf Sakura 100 reflect New Leaf Paper's holistic approach to sustainability:
100% post-consumer waste, which preserves forests and reduces landfill and greenhouse gas emissions
Processed chlorine free, which helps keep rivers free of poisonous bleaching products
Designated Ancient Forest Friendly, which reflects the highest environmental standard in North America
Manufactured with 100% Green-e certified renewable wind energy, which helps reduce the nation's output of the greenhouse gases that cause global warming
Designated ANCIENT FOREST FRIENDLY, the environmental gold standard Ancient Forest Friendly represents the most comprehensive standards for environmental responsibility in the paper industry. To earn the Ancient Forest Friendly (AFF) designation, a paper must be manufactured with a high percentage of post-consumer waste and not contain any virgin fiber from old-growth, ancient or endangered forests. If there is virgin fiber in the paper, it must be both FSC certified and assessed to not originate from endangered forests. This coveted designation was created by Markets Initiative (http://www.marketsinitiative.org/), an organization instrumental in stimulating the market for environmentally responsible papers, which in turn has had measurable benefits to human health and the biodiversity of forests.
SOURCE: New Leaf Paper
Thursday, May 03, 2007
Tumut pulp mill expansion gets planning green light
Tumut pulp mill expansion gets planning green light
http://www.abc.net.au/news/newsitems/200705/s1913138.htm
Planning approval has been given for the $450 million expansion of a pulp and paper mill at Tumut, in southern New South Wales, but there is still doubt about the project because local roads will need to be upgraded.
Visy plans to more than double the capacity of its mill is expected to create 900 jobs, 400 of them ongoing.
But a company spokesman, Tony Gray, says $24 million is needed to bring local roads up to scratch.
"The issue of roads and transport management is definitely one of the major stumbling blocks to definitely proceeding with the mill," he said.
"We have already put a lot of work into the traffic plan and we'll be attempting to minimise the number of truck movements wherever possible."
Tumut Mayor Gene Vanzella says he is also concerned about roads.
He says the expansion will put a lot of pressure on local resources.
"Last time when they built the stage one, accommodation was booked out as far as Wagga. There was buses coming in with guys from Wagga, Gundagai, Adelong, Batlow, Tumbarumba - even Talbingo was heavily booked," he said.
http://www.abc.net.au/news/newsitems/200705/s1913138.htm
Planning approval has been given for the $450 million expansion of a pulp and paper mill at Tumut, in southern New South Wales, but there is still doubt about the project because local roads will need to be upgraded.
Visy plans to more than double the capacity of its mill is expected to create 900 jobs, 400 of them ongoing.
But a company spokesman, Tony Gray, says $24 million is needed to bring local roads up to scratch.
"The issue of roads and transport management is definitely one of the major stumbling blocks to definitely proceeding with the mill," he said.
"We have already put a lot of work into the traffic plan and we'll be attempting to minimise the number of truck movements wherever possible."
Tumut Mayor Gene Vanzella says he is also concerned about roads.
He says the expansion will put a lot of pressure on local resources.
"Last time when they built the stage one, accommodation was booked out as far as Wagga. There was buses coming in with guys from Wagga, Gundagai, Adelong, Batlow, Tumbarumba - even Talbingo was heavily booked," he said.
Tuesday, May 01, 2007
Ahead of the Bell: MeadWestvaco
Ahead of the Bell: MeadWestvaco
http://news.moneycentral.msn.com/printarticle.aspx?feed=AP&date=20070430&id=6813627
NEW YORK (AP) - Packaging company MeadWestvaco Corp. holds a meeting for shareholders on Monday, ahead of first-quarter results on Wednesday.
Analysts expect MeadWestvaco to report earnings 3 cents per share on sales of $1.55 billion, according to a Thomson Financial poll.
MeadWestvaco didn't fare too well in the fourth quarter, as profit declined 34 percent. Although pricing on its high-quality paperboard and productivity at its paperboard mills both improved, hefty restructuring charges offset results.
Elsewhere in the sector, paper company Bowater Inc. recently widened its first-quarter loss and missed Wall Street estimates by a wide margin. Bowater said weakness in newsprint demand and a seasonal slowdown in the coated paper market weighed on profit.
Bowater's results provided further evidence of weakness in newsprint demand and a seasonal slowdown in the coated paper market, analysts said.
Shares of MeadWestvaco declined 16 cents to $33.04 on the New York Stock Exchange on Friday, and are up 33.5 percent since a 52-week low of $24.76, hit in August.
© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
http://news.moneycentral.msn.com/printarticle.aspx?feed=AP&date=20070430&id=6813627
NEW YORK (AP) - Packaging company MeadWestvaco Corp. holds a meeting for shareholders on Monday, ahead of first-quarter results on Wednesday.
Analysts expect MeadWestvaco to report earnings 3 cents per share on sales of $1.55 billion, according to a Thomson Financial poll.
MeadWestvaco didn't fare too well in the fourth quarter, as profit declined 34 percent. Although pricing on its high-quality paperboard and productivity at its paperboard mills both improved, hefty restructuring charges offset results.
Elsewhere in the sector, paper company Bowater Inc. recently widened its first-quarter loss and missed Wall Street estimates by a wide margin. Bowater said weakness in newsprint demand and a seasonal slowdown in the coated paper market weighed on profit.
Bowater's results provided further evidence of weakness in newsprint demand and a seasonal slowdown in the coated paper market, analysts said.
Shares of MeadWestvaco declined 16 cents to $33.04 on the New York Stock Exchange on Friday, and are up 33.5 percent since a 52-week low of $24.76, hit in August.
© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
From Bad To Worse: Newspapers' Circ Declines
From Bad To Worse: Newspapers' Circ Declines
by Erik Sass, Tuesday, May 1, 2007 8:00 AM ET
http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=59553&Nid=29924&p=204904
AMERICA'S FLAGSHIP NEWSPAPERS ARE STILL afloat, but their crews may want to don swimsuits soon. The Audit Bureau of Circulations posted numbers Monday showing that in the six months ending March 2007, total daily circulation fell 2.1% to 44,961,066. Sunday circ fell 3.1% to 48,102,437, compared to the same period last year.
The ABC FAS-FAX numbers follow a litany of bad industry news over the last few weeks, including weak first-quarter earnings from leading newspaper companies, and a decline in the housing market, with ominous implications for newspaper classifieds.
This marks the 17th straight year of decline for both weekday and Sunday circs; this is an industry in distress. Indeed, the latest ABC FAS-FAX numbers look almost identical to previous figures, released biannually in what has become a grim drumbeat of contraction. In the September 2006 report, daily circ fell 2.8% as Sunday circ dropped 3.4%; in March 2006 they fell 2.5% and 3.1%, respectively; September 2005, 2.6% and 3.1%; and March 2005, 1.9% and 2.5%.
As in previous years, big metro dailies took some of the biggest hits, with The New York Times down 1.9%, the Los Angeles Times down 4.2% to 815,723, The Washington Post down 3.5% to 699,130, Chicago Tribune down 2.1% to 566,827, Houston Chronicle down 2% to 504,114, Dallas Morning News down 14.3% to 411,919, the San Francisco Chronicle down 2.9%, Long Island's Newsday down 6.9% to 398,231, and The Boston Globe down 3.7% to 382,503.
These figures actually contain (relatively) good news for some of the big titles, as their percentage rate of decline appears to be slowing. In the September 2006 ABC report, the New York Times' daily circ was down 3.5%, Los Angeles Times 8%, San Francisco Chronicle 5.3% and The Boston Globe 6.7%. On the other hand, losses accelerated slightly at the Chicago Tribune and The Washington Post, increasing by about half a percentage point.
In this gloomy environment, publications that hold their own are success stories: USA Today's circ is up 0.5% and The Wall Street Journal grew 0.6%. The biggest standouts were New York City's two daily tabloids, as the New York Daily News grew 1.4% to 718,174, and the New York Post jumped a remarkable 7.6% to 724,748.
In recent weeks, the nation's biggest newspaper companies have posted weak first-quarter results, citing revenue declines due to Internet competition. In the first quarter of 2007, the New York Times Company saw print ad revenue decline 3.4%, compared to the same period last year, as total profit fell 9.9% to $54.5 million. At the Tribune Company, overall operating revenues slipped 4% to $1.2 billion and operating profit was down 16% to $181 million. Gannett saw total revenues decline slightly from $1.88 billion in 2006 to $1.87 billion in 2007, as net income fell from $235.3 million in first quarter 2006 to $210.6 million in 2007, a roughly 10.5% drop.
by Erik Sass, Tuesday, May 1, 2007 8:00 AM ET
http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=59553&Nid=29924&p=204904
AMERICA'S FLAGSHIP NEWSPAPERS ARE STILL afloat, but their crews may want to don swimsuits soon. The Audit Bureau of Circulations posted numbers Monday showing that in the six months ending March 2007, total daily circulation fell 2.1% to 44,961,066. Sunday circ fell 3.1% to 48,102,437, compared to the same period last year.
The ABC FAS-FAX numbers follow a litany of bad industry news over the last few weeks, including weak first-quarter earnings from leading newspaper companies, and a decline in the housing market, with ominous implications for newspaper classifieds.
This marks the 17th straight year of decline for both weekday and Sunday circs; this is an industry in distress. Indeed, the latest ABC FAS-FAX numbers look almost identical to previous figures, released biannually in what has become a grim drumbeat of contraction. In the September 2006 report, daily circ fell 2.8% as Sunday circ dropped 3.4%; in March 2006 they fell 2.5% and 3.1%, respectively; September 2005, 2.6% and 3.1%; and March 2005, 1.9% and 2.5%.
As in previous years, big metro dailies took some of the biggest hits, with The New York Times down 1.9%, the Los Angeles Times down 4.2% to 815,723, The Washington Post down 3.5% to 699,130, Chicago Tribune down 2.1% to 566,827, Houston Chronicle down 2% to 504,114, Dallas Morning News down 14.3% to 411,919, the San Francisco Chronicle down 2.9%, Long Island's Newsday down 6.9% to 398,231, and The Boston Globe down 3.7% to 382,503.
These figures actually contain (relatively) good news for some of the big titles, as their percentage rate of decline appears to be slowing. In the September 2006 ABC report, the New York Times' daily circ was down 3.5%, Los Angeles Times 8%, San Francisco Chronicle 5.3% and The Boston Globe 6.7%. On the other hand, losses accelerated slightly at the Chicago Tribune and The Washington Post, increasing by about half a percentage point.
In this gloomy environment, publications that hold their own are success stories: USA Today's circ is up 0.5% and The Wall Street Journal grew 0.6%. The biggest standouts were New York City's two daily tabloids, as the New York Daily News grew 1.4% to 718,174, and the New York Post jumped a remarkable 7.6% to 724,748.
In recent weeks, the nation's biggest newspaper companies have posted weak first-quarter results, citing revenue declines due to Internet competition. In the first quarter of 2007, the New York Times Company saw print ad revenue decline 3.4%, compared to the same period last year, as total profit fell 9.9% to $54.5 million. At the Tribune Company, overall operating revenues slipped 4% to $1.2 billion and operating profit was down 16% to $181 million. Gannett saw total revenues decline slightly from $1.88 billion in 2006 to $1.87 billion in 2007, as net income fell from $235.3 million in first quarter 2006 to $210.6 million in 2007, a roughly 10.5% drop.
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