KR says earnings could be flat

SAN JOSE, Calif., June 14 (AP) - Knight Ridder, the second-largest newspaper publisher in the country, warned on Tuesday that its second-quarter earnings could be flat with year-ago results, because of charges and weak results at the company's Detroit operations.

The company also reported a 3.5 percent rise in overall advertising revenue last month, with retail advertising growth of 5.7 percent being offset by a 7 percent decline in national ads.

Classified ad sales rose 5.5 percent on sharply higher employment and real estate listings, while automotive ad sales decreased in the period.

For the quarter ending this month, Knight Ridder said its profit should be similar to last year's income of $1.08 a share, excluding a gain of 10 cents from a tax break and favorable adjustments in Detroit, where it runs The Detroit Free Press.

Severance costs and a decline in operating earnings from Detroit will weigh on its quarterly results, the company added.

On average, analysts are looking for earnings of $1.05 a share on $776.1 million in revenue. Knight Ridder's revenue totaled $760 million in the year-ago quarter.

Knight Ridder shares fell 84 cents, to $61.50.

[Published: June 15, 2005]