Three of the nation's largest newspaper companies, New York Times Co., Gannett Co., and Tribune Co., have reported poor profits for the first quarter, reflecting a downward trend in newspaper publishing which has been ongoing for more than three years and has been attributed to slumps in the classified and national ad categories. Most advertisers have either shifted to the Internet because of increasing online traffic or have experienced losses as a result of the slump in print-ad sales. Although online revenue has increased, it has not balanced the loss of revenue from print ads. The New York Times Co. (NYT) declared a 26% decline in its first-quarter profits. Overall, online business added 9.5% of its total revenue—an increase from last year's 7.6% in the first quarter. Gannett (GCI) reported advertising-sales earnings of $210.6 million or $0.90 per share, compared with a net income of $235.3 million or $0.99 per share last year. Advertising revenue slipped by 1.9% to $1.24 billion, while revenue and circulation figures remained static at $1.87 billion and $324 million, respectively. Tribune Co. lost $15.6 million or $0.06 per share, although last year it saw a profit of $100.7 million or $0.33 per share in the first quarter. Overall publishing revenue dwindled by 5% to $931 million. The greatest loss was seen in the classified category, whose revenue fell by 14%.
SuperValu benefits from acquisition of Albertson's grocery chain
After acquiring the Albertson's grocery chain, Eden Prairie, MN-based SuperValu, Inc., registered a profit for its fiscal fourth quarter. Its revenues were $119 million or $0.57 per share, reflecting a huge leap from the previous year's revenues of $6 million or $0.04 per share for the fourth quarter. The company's net sales also increased to $10.3 billion for the fourth quarter. SuperValu's net sales for the year were $37.4 billion, and its net earnings were $452 million, which catapulted the company to its position as an emerging retail powerhouse. Jeff Noddle, SuperValu's chairman and CEO, said in a press release that the company is poised for the next stage of its growth. SuperValu expects sales figures for next year to hover around $44 billion. The company also plans to open 25 to 30 standard-size stores and 60 to 80 limited-assortment stores, including licensed stores, in 2008, in addition to remodeling others.
Mittal Steel to export 200,000 tons of steel
A division of Arcelor Mittal, Mittal Steel USA will export 200,000 tons of steel from several of its Eastern and Midwestern units. With the exports, which are scheduled to begin in the second quarter, the company plans to take advantage of the growing international market. Emerging potentialities in the global market have emboldened the company to test new waters in order to identify its capabilities. It also plans to take advantage of the resources of Arcelor Mittal International, the company's international trading arm. Mittal Steel USA and its affiliates produce more steel than any other company in North America. Arcelor Mittal is the world's number-one steel company and has 330,000 employees in more than 60 countries. Global market leader Arcelor Mittal's 2006 pro forma financial records show combined revenues of $88.6 billion and a crude-steel production volume of 118 million tones—about 10% of the world's total steel output.
The Pantry, Inc., set to expand in the South
With the purchase of convenience stores in Alabama, Florida, and North Carolina, Sanford, NC-based The Pantry, Inc., is set to expand. It has announced a definitive agreement for the purchases, although details of the agreement remain undisclosed. If the company gets regulatory approval for its acquisitions, the deal should be sealed by the third quarter, a company release stated. The Pantry has also finalized deals for 11 stores in Spartanburg, SC, as well as a store in Apex, NC, with Willard Oil Co., Inc. It presently operates 1,638 stores in 11 states. The company's revenue figures for 2006 stand at $6 billion. Currently, The Pantry has 152 stores that have either been acquired or are in the process of being acquired. The company has been in expansion mode in the South since last November, acquiring more than 50 stores in the region.
Grange Mutual appoints board member
M. Marnette Perry is the newest member of Columbus, OH-based insurance company Grange Mutual Casualty Co.'s board of directors. Perry also serves Cincinnati-based Kroger Co. as senior vice president. One of the country's largest chains of retail grocery stores, Kroger brings in more than $60 billion in annual sales. Perry joined Kroger in 1972 and, over a period of 35 years, rose to a supervisory post from which she oversaw seven of Kroger's supermarket divisions. Perry's efforts contributed to the growth of the company, which now occupies the number-21 position on the Fortune 500 list. Michael V. Parrott, Grange Mutual Casualty board chairman, welcoming Perry to the insurance company, said that the company will gain leverage from Perry's vast experience at Kroger as well as her experience serving the community. Kroger operates 2,468 grocery stores in 31 states, including 57 in Central Ohio. Insurance provider Grange Mutual Casualty Group offers auto, home, life, business, and farm insurance protection through Grange Insurance and Integrity Insurance. Grange Insurance Co.'s revenue for 2006 stands at approximately $1.3 billion.
