Gannett Co. posted an 8% improved increase in net income for the first quarter, thanks to better performance by its broadcasting unit and cost-cutting in its newspaper units. Net income rose 39.5% to $243.6 million from $174.5 million; excluding accounting changes made last year, income rose 8%. Revenue dropped 3.2% to $1.52 billion from $1.57 billion in 2001. Gannett's flagship, USA Today, showed a 9% decline in advertising revenue and a 12% decline in ad pages for the quarter.
The New York Times Co. reported net income dropped 11.1% in the first quarter to $54.5 million due to the continued weakness in advertising. Revenue dropped 5.3% to $737.1 million, and advertising revenue at the flagship New York Times dropped 12.4%.
McDonald's Corp. reported its sixth-consecutive earnings decline but said it expects improvement in the second half as it implements revamped service initiatives, menu rotations and more focused advertising. Net income of $253.1 million for the quarter dropped from $378 million for the same quarter last year.
Colgate-Palmolive Co. posted an 8% increase in first-quarter net income to $289.7 million that the company attributed partly to increased advertising and new products driving market share. Colgate reported revenue of $2.2 billion, flat with a year ago. Chairman-CEO Reuben Mark said the company expects to see accelerated sales growth in the second half, as it launches about 20 new products.
Interactive shop Razorfish reported net income of $2.5 million, vs. a loss of $24.9 million during the same period in 2000. After factoring out restructuring costs and other items, net income totaled $900,000. Razorfish posted revenue of $11.3 million for the quarter, down from $43.8 million a year ago. Chief Financial Officer John Roberts said restructuring-including divesting European operations and office leases-has reduced costs.
contributing: hillary chura, cara b. dipasquale, jean halliday and kate macarthur
Companies reporting this week:
April 22: Anheuser-Busch, Harte-Hanks, Knight Ridder, Viacom
April 23: PepsiCo, Gillette, XM Satellite Radio
April 24: AOL Time Warner, Sara Lee
April 25: Kellogg, Walt Disney, Unilever, Coors Brewery Co.