Business Journal: McClatchy Shares Fall
One of the region’s oldest companies continues to face tough times.
Wednesday, December 24, 2008
Shares of The McClatchy Co. dropped for the seventh-consecutive trading session, falling to 60 cents late Tuesday, a dramatic decline from just four years ago when its stock fetched almost $70. The Sacramento-based company – publisher of The Sacramento Bee and 29 other daily newspapers – has been cutting costs, including buyouts and layoffs, and has also made significant strides to trim its $2 billion in debt. But that’s apparently not enough for investors on Wall Street watching the nation’s third-largest newspaper chain. McClatchy, one of the oldest companies in the Sacramento region, has been battling declining advertising revenue and lower circulation during the past few years, just like its industry rivals. Now, the company, which has about $5 million in cash down from $25 million a year ago, is looking to sell the Miami Herald, one of its best-known newspapers. McClatchy officials have not commented on the stock drop in recent days.