Surprise

New York Times Stems Red Ink

Apparently, the death of newspapers has been greatly exaggerated. At least for the moment. After a first-quarter loss of $74.5 million, the New York Times Company reported second-quarter net income of $39.1 million, up from $21.1 million a year ago. A tax adjustment slightly inflated the earnings. The company's profit, helped by steep budget cuts, comes despite a 31.9 percent drop in ad revenue at the company's papers and Web sites this quarter. The company cut its operating costs by $140.5 million—about 20 percent—compared with a year earlier, but $29 million of that reduction came from the closure of a money-losing newspaper and magazine-distribution subsidiary.