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Dow Jones posts lower revenue, earnings

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New York--Dow Jones & Co. reported Tuesday that second-quarter revenue was down 5.6% from a year earlier to $393.6 million.

Including special items, Dow Jones reported net income was $30.8 million, or 38 cents per share, in the second quarter of 2002, compared with $54.0 million, or 64 cents per share, in the second quarter of 2003.

The special items in these results include the proceeds from an insurance settlement gain related to Sept. 11 in the second quarter of 2003 and from the sale of assets in the second quarter of 2002. Excluding these special items, Dow Jones’ net income was $22.2 million in the second quarter of 2003, up slightly from $21.4 million in the second quarter of 2002.

Dow Jones said its operating expenses, excluding special items, were $358.8 million, down 6.1% from the second quarter of 2002. Also excluding special items, operating income for the second quarter was $34.8 million, compared with $35.1 million a year earlier.

“While the advertising and business environment is still difficult, we are beginning to see some indications of improvement,” said Peter R. Kann, Dow Jones’ chairman-CEO, in a statement. Dow Jones also said that it expects earnings per share before special items in the third quarter to be in the upper single-digit range, compared with 6 cents per share in the third quarter of 2002.

These anticipated results assume that third-quarter 2003 linage at The Wall Street Journal will be flat to up slightly versus the third quarter of 2002. The Journal's advertising linage declined 7.9% in the second quarter.

--Sean Callahan

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