The New York Times Company said yesterday that expenses related to job cuts would lower its fourth-quarter profit.
The company is forecasting earnings per share of 45 to 47 cents in the quarter, compared with 75 cents in the period a year earlier, according to a statement.
The estimate includes expenses of $34 million to $37 million, or 14 to 15 cents a share, for the job cuts. The company announced in September that it would reduce its work force by 500 workers. The company also plans to take a charge associated with the cutbacks in the first quarter of 2006, the statement said.
In addition, the company said stock-based compensation expenses in the fourth quarter would be $16 million to $17 million, or 7 cents a share. For the year, stock-based compensation expense is expected to be $31 million to $33 million, compared with earlier estimates of $28 million to $32 million.
Earlier this month, the chief executive of the Times Company, Janet L. Robinson, described the media marketplace as challenging in 2005 and predicted that would continue in 2006. Like other newspapers, The Times is struggling to hold onto readers and advertisers in the face of increased competition from the Internet.
The earnings forecast was issued after the close of regular stock trading. Shares of the Times Company closed at $26.98, down 27 cents, and fell as low as $26.07 in after-hours trading.
