McClatchy sees $2M loss in first quarter

SACRAMENTO -- McClatchy Co., publisher of the Merced Sun-Star, The Miami Herald and other newspapers, said Tuesday that it had a net loss in the first quarter as advertising revenue declined faster. McClatchy had warned that advertising spending was weak in January. That trend held through the quarter: Ad revenue fell 11 percent from a year ago, compared with a 7 percent decline in the fourth quarter. The newspaper industry is reeling from a decline in advertising that doesn't seem to be slowing as the overall economy recovers. McClatchy said it lost $2 million, or 2 cents per share, in the quarter that ended March 27. That compares with net income of $2.2 million, or 3 cents per share, in the same quarter a year ago.