* Q4 adj EPS $0.39 vs est $0.35
* Says California, Florida regions were weak
* Sees 2011 capex spending lesser than $20 mln
* Shares fall 13 pct
(Recasts, adds conference call details; updates share
Feb 8 News and advertising firm McClatchy Co
(MNI.N) said it would substantially cut costs this year as
advertising revenue continued to be hurt by a weak economy,
dragging fourth-quarter sales down 6 percent.
Shares of the company, which publishes The Miami Herald and
the Sacramento Bee, fell 13 percent in morning trade.
Advertising revenue was down 6.3 percent in
October-December, hurt by a 10.6 percent fall in national
advertising sales. [ID:nASA01IUC]
Chief Executive Gary Pruitt blamed a downturn in the real
estate markets of California and Florida along with sectoral
weakness for the fall in ad revenue.
McClatchy, whose $1.78 billion debt has worried investors,
said it paid back a bank term loan 18 months early, and was
focusing on cutting costs and increasing ad revenue.
"We expect that we will spend no more than $20 million on
Capital expenditures in 2011," Pruitt said.
Rival broadcaster and publisher Media General Inc MEG.N
also reported a lower quarterly profit as publishing and
advertising revenues slid. [ID:nSGE70Q0DM]
Shares of Sacramento, California-based McClatchy, which
have risen over 50 percent in the last three months, were down
10 percent at $4.50 on Tuesday on the New York Stock Exchange.
(Reporting by Siddharth Cavale and Supantha Mukherjee in
Bangalore; Editing by Joyjeet Das)