Knight Ridder chairman Tony Ridder is telling prospective buyers of the newspaper chain that management will increase profits by cutting jobs, benefits and even reducing page sizes, the Wall Street Journal reported this morning (Jan. 24). Reporters Dennis K. Berman and Joseph T. Hallinan said that Ridder is telling buyers that he can increase the company’s EBITDA (earnings before interest, taxes, depreciation and amortization) from $685 in 2004 to $925 in 2006 — a 20 percent jump. “[B]uyers have viewed Knight Ridder’s projections as overly optimistic,” the reporters said.
KR vows to cut jobs, benefits, page sizes
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