Tuesday, December 9, 2008

McClatchy says its latest results are "lousy"

Gary Pruitt, McClatchy's huckster CEO, announced today prior to a scheduled speech that McClatchy's latest results are lousy.

McClatchy Co (MNI.N: Quote, Profile, Research, Stock Buzz) said its current results are "lousy" and the economy appeared to be worsening, but the U.S. newspaper publisher aims to narrow revenue declines and further streamline operations in 2009.

Chief Executive Gary Pruitt said in a statement ahead of a UBS media conference on Tuesday that McClatchy would work to boost revenue from Internet advertising, permanently reduce its cost structure and pay down more debt.

"We are all aware of just how difficult this year has been for the newspaper industry," Pruitt said.

"We recognize that part of our advertising decline is permanent -- reflecting the secular shift to the Internet. Another part is temporary -- reflecting the cyclical nature of our business in a recession," he said in his statement.

McClatchy, which owns The Miami Herald, Sacramento Bee and Anchorage Daily News among its media properties, has been under pressure to cut costs as it must meet heavy debt payments from its purchase of newspaper chain Knight Ridder Inc in 2006.

The company had $2.07 billion in debt as of Sept. 30, having paid down about $404 million in debt principal in the first nine months of the year.

"We have made further progress in paying down debt in the fourth quarter and expect to do so again next year." Pruitt said in the statement before his presentation.

He gave no specifics on how McClatchy would streamline operations next year. The New York Times reported over the weekend that McClatchy has approached potential buyers about selling the Miami Herald.
Hat tip: Romenesko
UPDATE: A Baghdad Bob comparison. (Hat tip: comments)


Anonymous said...

Here's one for you. Newsbusters got hold of it. Headline: McClatchy CEO Gary Pruitt Performs a "Baghdad Bob"


Anonymous said...

So everything is rosy, and MNI will have a glorious future once the recovery gets underway in 2009? Yes, but how come economists now are not forecasting a recovery until 2010. How come we never get an honest assessment out of these Sacto bandits? THey just lie out of habit, and they know they are lying.

Anonymous said...

-“cyclical nature of our business” -

I’ve heard that tired old excuse for 25 years. It’s pablum for the soft-brain arrogant managers of McClatchy. It’s tantamount to saying, “We are so Important, and so Needed that readers and advertiser’s dollars Must come back to us -- and they’ll pay what we demand!.”

That arrogance of monopoly and ignorance of change also drips off statements like, “We are the most Important news and information source in the region.”.

If it was just marketing drivel, it may be so bad. However, since it is truly believed in McClatchy manager’s offices, it’s the root of the self-inflicted cancer that will finally kill the ink on deadwood.

Kevin Gregory said...

Anonymous 9:14 -- agreed, the arrogance of the elite media is unbelievable.