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The New York Times Company Reaffirms Second-Quarter Outlook and 2010 Expectations

Tuesday 18. May 2010 - The New York Times Company today will discuss its business, strategy and management's outlook during the 38th Annual J.P. Morgan Global Technology, Media and Telecom Conference.

“Based on what we have seen to date, we continue to expect year-over-year revenue trends for the second quarter for print advertising to improve from the levels of the first quarter, while digital advertising is expected to trend similarly to the first quarter, with increases from 2009 in the high teens,” said Janet L. Robinson, president and chief executive officer.
The Company also reaffirms its previously announced 2010 expectations, provided in its first-quarter earnings release, as follows:
2010 Expectations
While we will remain diligent in managing our operating expenses, we expect that through the remainder of 2010 year-over-year cost savings will moderate, in part because we will be cycling past several major expense-reduction initiatives implemented in mid-2009, we reinstated many of the salary rollbacks implemented in the second quarter of 2009, and newsprint prices are currently rising. We do expect to manage our operating cost base such that we will adjust expense levels to offset any revenue declines through the remainder of the year.
Given recent announcements of additional price increases by suppliers, we expect newsprint price comparisons to be slightly favorable in the second quarter and unfavorable in the third and fourth quarters of 2010.
In addition, the Company expects the following on a pre-tax basis in 2010:
Depreciation and amortization: $125 to $130 million,
Capital expenditures: $45 to $55 million,
Interest expense, net: $85 to $90 million, and
Income from joint ventures: $5 to $10 million, excluding a gain of approximately $13 million (the Company’s share is approximately $10 million) from the sale of an asset at one of the paper mills in which the Company has an investment and a gain of approximately $9 million from the sale of a portion of the Company’s interest in NESV.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include national and local conditions, as well as competition, that could influence the levels (rate and volume) of retail, national and classified advertising and circulation generated by our various markets, material increases in newsprint prices and the development of our digital businesses. They also include other risks detailed from time to time in the Company’s publicly filed documents, including the Company’s Annual Report on Form 10-K for the year ended December 27, 2009. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.