The New York Times Co. took a $41.4 million hit in the first quarter as a result of the upcoming Madison Paper Mill closure, the company reported Tuesday.
In its latest quarterly earnings statement, the New York Times explained that the one-time charge resulted from “joint ventures related to the announced closure of a paper mill operated by Madison Paper Industries, in which the company has an investment through a subsidiary.”
The newspaper publisher said its proportionate share of the mill-related loss was $20.1 million after receiving tax benefits resulting from the mill’s operating losses.
Companywide, the newspaper owner reported a total net loss for the quarter of $8.3 million, or 5 cents a share, an improvement over its loss of $14.3 million, or 9 cents a share, a year earlier. It reported quarterly revenue of $379.5 million, down 1.2 percent from $384.2 million in the first quarter of 2015.
Madison Paper Industries, which owns the mill, said in March that it plans to close it this month, putting more than 200 employees out of work and adding to the decline of Maine’s paper industry.
Mike Croteau, union president for the United Steel Workers Local 36, said production will cease the week of May 28. He said workers will stay on until June 12 for maintenance, equipment shutdown and cleaning, and will be dismissed in increments after that.
It is the fifth Maine mill to be shut down in a little over two years, and its closure leaves only six mills operating in the state. Once employing more than 18,000 workers at its height in the 1960s, the state’s paper-making industry has lost more than 1,500 jobs in the past two years and 2,300 since 2011.
Morning Sentinel staff writer Rachel Ohm contributed to this report.
Source : pressherald.com