SHARP DROP IN FIRST-QUARTER EARNINGS FOR DOW JONES

Lineage for 'WSJ' Down 26%; Double-Digit Declines Still Expected

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NEW YORK (AdAge.com) -- First-quarter earnings before special items fell sharply at Dow Jones & Co., publisher of The Wall Street Journal, causing it to narrowly miss earnings expectations.

Earnings before special items fell 52.2% to $6.8 million, and revenues were down 14.6% to $392.9 million. Ad linage at the Journal fell 26.2% for the first quarter, and CEO Peter Kann said linage drops of between 10% and 20% were expected for the second quarter. Mr. Kann said April linage appeared down around 15%.

Second-quarter guidance
The company's second-quarter

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guidance for investors pegged earnings between 20 cents to 30 cents a share, significantly below analysts' consensus of 45 cents.

The company also announced it would sell three Massachusetts dailies in its Ottaway community newspaper segment to Eagle-Tribune Publishing Co. for about $70 million in cash.

Down Jones shares fell today to $57.98, down $1.96 at close of market.

The company on Tuesday unveiled its new-look Journal, including a new, service-oriented section called "Personal Journal."

Mr. Zannino said the company would spend around $20 million to market the revamped flagship.

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