Times Mirror Operating Income Jumps in Quarter

Times Mirror on Thursday reported sharply higher operating income for the second quarter, reflecting particular strength at eight of its nine newspapers.

Overall, Times Mirror reported net income of $83 million for the quarter ended June 30, which is below the $191.7 million reported a year ago. But the 1986 period included a $134-million gain from selling various subsidiaries.

When those one-time gains are subtracted and income only from operations is counted, Times Mirror’s second-quarter earnings from operations last year came to 89 cents a share, compared with $1.28 a share this year, a gain of 43.8%.

Based in Los Angeles, Times Mirror owns the Los Angeles Times and eight other newspapers as well as book publishers, magazines and broadcast and cable television enterprises and other operations.

Times Mirror’s increased profit from operations came despite much smaller increases in revenue and more modest increases in pretax operating profits.

Revenue in the quarter was $793.4 million, an increase of 5.9% from the year before.

Operating profit before taxes and interest expense was $165.4 million, an increase of 20% from the year before.

The company explained the difference by noting that it is now paying less interest on its debt than last year and also fewer taxes.

Chairman and Chief Executive Robert F. Erburu attributed the strong quarter in part to Times Mirror’s recent restructuring program, in which it divested several operations to concentrate on core businesses. The one-time gain in the second quarter last year came because Times Mirror sold its microwave communications company, three television stations and a cable system.

Erburu predicted that 1987 overall would be a “record year in operating earnings,” but he warned that “the pace of earnings growth in the second half is expected to be much slower.”

Times Mirror’s newspapers were “primarily responsible” for the improved earnings in the second quarter, the company said, with operating profit rising 27% to $110 million in the quarter.

Although Times Mirror does not disclose the results from each newspaper, it did say that each of the papers posted higher operating profits than the year before except for the Denver Post. The Los Angeles Times reported the largest increase.

The Baltimore Sun, the company said, enjoyed a higher profit despite a six-day strike by employees.

Operating profits from book, magazine and other publishing ventures rose a more modest 5% to $23 million.

Times Mirror suffered lower operating profits in television during the quarter because of the operations it sold off. Broadcast television, for instance, dropped 17% to $18 million. Cable dropped 46% to $7 million.

Operating profits from other operations rose 66% to $12 million, primarily because of higher timber prices and the sale of timberlands.