The media company, which publishes the Philadelphia Inquirer and the San Jose Mercury News, reported net income of $253.2 million, or $3.56 a share, compared with $76.9 million, or 99 cents a share, a year earlier.
The results included a gain of $207.9 million related to the sale of the Detroit Free Press and the Tallahassee Democrat. Earnings from continuing operations were 61 cents a share, compared with 93 cents a year earlier, slightly better than it had forecast.
Adjusted earnings per share were 67 cents, or 1 cent higher than the average forecast of analysts polled by Reuters Research. In early trade, the company's stock rose $1.28, or 2.3 percent, to $56.43 on the New York Stock Exchange.
While third-quarter operating revenue was up 2.2 percent at $723.8 million, costs rose 7 percent, partly due to expenses related to newsprint.
"That level of cost increase will not be repeated in the fourth quarter," Chief Executive Tony Ridder said in a statement.
The sharp rise in costs should moderate in the fourth quarter, Knight Ridder said, estimating that expenses would increase about 1 percent year-over-year.
Along with other publishers, including New York Times Co., Knight Ridder has turned to job cuts to trim costs. It recently announced plans to cut 100 jobs at its Philadelphia Inquirer and Daily News newspapers.
Advertising soft spots took a toll in the third quarter. Areas that were particularly weak included retail -- hurt by soft advertising from department stores, home electronics and grocery and national technology and entertainment.
Advertising revenue for the quarter was up 3 percent to $571.5 million. But excluding newspapers it acquired during the quarter, the rise was just 1.8 percent.
[October 14, 2005]
Click on the headline to see a press release on the report on the Knight Ridder site
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