Hello Team,

According to Editor & Publisher, 5 weeks after the September 11th attacks and 2 weeks into the anthrax scare, daily newspaper circulation is up strongly.  Of 40 dailies surveyed by Editor & Publisher during the past 10 days, 34 reported higher circulation, often up 0.5 -1.5%.  Acccording to E&P, if sustained, the gains could put the industry on a growth track for the first time in 40 years.  Let's see if the increased circulation levels will hold over the next several months - if heightened circulation levels persist, we can assess the impact on newsprint demand.

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The Washington Post reported a decline in 3Q01 net income and revenues as the Company was hit by an industry-wide slump in advertising and the September 11th attacks.  The Company reported a net income of $1.6 million, or 14 cents a share, for its 3Q01, compared with $33.5 million, or $3.51 per share, a year ago. The Company's revenues were down 1%  from 3Q00.  

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Pulitzer posted lower 3Q01 earnings, hurt by weak advertising spending.  The publisher of the St. Louis Post-Dispatch and the Arizona Daily Star said its net earnings were $1.5 million, or 7 cents per diluted share, compared with $5 million, or 23 cents per share, a year ago.  Revenues in the period totaled $100.6 million, compared with $101.2 million a year earlier.  Nothing new here as many publishers have released lower 3Q01 results...

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J.P. Morgan  has started coverage of the newspaper publishing sector, with a ``buy'' rating on Knight Ridder and ``long-term buy'' ratings on Gannett and New York Times.  The investment bank started Dow Jones & Co. at a ''market perform.''  J.P. Morgan said that it expects U.S. newspapers to experience a decline in advertising revenue of 8.6% this year and a fall of 2.2 % in 2002.  JP Morgan said it expects the current trend of declining readership and circulation to reverse in 2003, with growth returning to 2.8% to 3.3%.  I will send you any pertinent reports J.P. Morgan releases...

I am currently in San Diego at a RISI conference.  If you need anything, please call me at (832)721-3286.

Ayesha