PRIMEDIA CUTS EARNINGS FORECAST, SHARES DROP STEEPLY

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NEW YORK (AdAge.com) -- Primedia joined a long line of media companies cutting earnings forecasts.

The media company warned investors that this year's earnings before interest, taxes, depreciation and amortization, or EBITDA, would be significantly off its earlier projections and would come in below last year's level.

In July, in the wake of its acquisition of Emap USA, Primedia projected EBITDA this year to be between $280 million to $300 million, but today it said its 2001 EBITDA would come in below 2000's level of $250 million.

Following the news of its earnings cut, shares of Primedia were down significantly in trading today on the New York Stock Exchange. Shares closed down 39%, at $2.60, a new 52-week low.

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