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Penton lowers revenue, earnings estimates

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Cleveland--In more bad news from Penton Media, the company released lower revenue and earnings estimates for this year.

Penton said it now expects revenues for the year to be $245 million to $270 million, down from guidance of $280 million to $320 million announced on May 1.

Adjusted earnings before income taxes, depreciation and amortization (EBITDA) for 2002 are now expected to be between $25 million and $35 million, down from guidance of $50 million to $60 million first provided on Jan. 7.

Thomas L. Kemp, Penton chairman-CEO, attributed the lower forecasts to continued weakness in the technology sector, which is hurting the company's Internet World properties. Kemp added that while the manufacturing sector has experienced some recovery, Penton’s media products serving manufacturing markets have yet to see any meaningful pickup in business.

Penton plans to take a second-quarter restructuring charge of about $8 million to accommodate workforce reductions and additional office closures. It also plans to take a $44 million non-cash charge as a result of restructuring its long-term debt.

Penton is scheduled to release its second-quarter earnings on July 30 before the market opens.

--Sean Callahan

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