Thursday, October 27, 2005

Maybe the Sulzberger family should retire

In its most recent quarter, the New York Times Company earned $60.8 million on $845 million in sales. This is a 7.2% profit margin, about one third that reported as average in the Star Tribune. Last month, S&P put the New York Times Company on CreditWatch for a downgrade of its A+ credit rating. This occurred when the Times said it was laying off 500 people, which we wrote about then.

We had not realized, however, that the Times is only one third as profitable as its peer group. The Board really should consider running the Company for its shareholders, rather than for the family trust, as we have said previously.

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