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KNIGHT-RIDDER INC. REPORTS EARNINGS

 MIAMI, Oct. 21 /PRNewswire/ -- Knight-Ridder Inc. (NYSE: KRI) earned $.57 per share in the third quarter of 1993, compared with $.57 per share earned in the third quarter a year ago.
 Net income was $31,251,000, a 0.4 percent decline from the $31,392,000 earned in 1992. Total operating revenue rose 5.0 percent to $593,124,000. Operating income was down 4.5 percent to $58,314,000.
 Newspaper Division
 Total operating revenue for the Newspaper Division rose 2.9 percent to $482,740,000. However, the division's operating income declined 7.5 percent to $59,926,000.
 Business Information Services (BIS) Division
 BIS Division operating revenue was up 15.5 percent for the quarter to $110,384,000. Operating income rose 15.9 percent to $5,885,000.
 Comment on Operations
 Commenting on third quarter operations, Ross Jones, Knight-Ridder's chief financial officer, said, "Advertising revenue in our newspapers rose only 1.6 percent in the quarter. The small overall gain was partially attributable to very difficult comparisons in September in Miami, which finally cycled through a year of favorable comparisons generated by post-Hurricane Andrew activity. We also experienced unexpected revenue weakness in Philadelphia in September, which was related to advertiser uncertainty created by labor negotiations.
 "Overall, both retail and general advertising revenue declined in the quarter. However, classified advertising revenue was up 6.4 percent reflecting good gains in Miami (in July and August), San Jose, Detroit, Charlotte, Lexington, Akron, Columbia and other markets.
 "Our Business Information Services Division had a good quarter. Data-Star, the online retrieval services company based in Bern, Switzerland, which we acquired in March, continued to outperform our expectations. Knight-Ridder Financial also did well with excellent growth of its MoneyCenter product line, particularly in Europe and Asia.
 "There were a number of cost factors in the quarter. Newsprint, ink and supplements were up 11.3 percent. Year-to-date, newsprint, ink and supplements are up 5.5 percent. We expect the fourth quarter increase to be in the low single digits. The third quarter increase was noticeably large because of unusually lower cost for newsprint used in last year's third quarter and a temporary spike in the price of newsprint consumed in the quarter.
 "A 7.4 percent increase in other operating costs was partially attributable to growth in royalties associated with increased revenue at Data-Star and Dialog. We also recorded a 13.5 percent increase in depreciation and amortization due to the new plant in Philadelphia and the purchase of Data-Star.
 "The tax rate for the quarter was 41.0 percent reflecting the retroactive impact of the new federal tax increases.
 "Philadelphia Newspapers, Inc. reached agreement with its unions for a new four-year contract. We are pleased that we have reached agreements with our labor unions in Philadelphia. This is important to our success in the next four years."
 Jones said, "We expect good fourth quarter improvement in earnings per share compared to last year. This will be due in some part to favorable comparisons with large expense adjustments in the fourth quarter last year associated with FAS 106 and the Ponderay newsprint mill investment. We are encouraged by improvements we have seen in classified advertising revenue."
 The quarterly income statement and divisional results follow.
 Knight-Ridder (NYSE: KRI) is an international information and communications company engaged in newspaper publishing, business news and information services, electronic retrieval services, news graphics and photo services, cable television and newsprint manufacturing. Around the world, news, advertising and information from Knight-Ridder reach more than 100 million people in over 100 countries. Last year the company had $2.3 billion in revenues.
 KNIGHT-RIDDER, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENT OF INCOME
 (In thousands of dollars, except share data)
 Quarter Ended Three Quarters Ended
 Sept. 26 Sept. 27 Sept. 26 Sept. 27
 1993 1992 1993 1992
 OPERATING REVENUE
 Newspapers
 Advertising
 Retail $ 175,319 $ 176,043 $ 536,180 $ 530,435
 General 36,617 38,710 124,138 132,699
 Classified 139,303 130,959 416,237 386,853
 Total 351,239 345,712 1,076,555 1,049,987
 Circulation 117,761 113,726 353,594 343,967
 Other 13,740 9,819 41,091 29,248
 Total Newspapers 482,740 469,257 1,471,240 1,423,202
 Business Information
 Services 110,384 95,597 327,460 287,621
 Total Operating
 Revenue 593,124 564,854 1,798,700 1,710,823
 OPERATING COSTS
 Labor and employee
 benefits 251,806 244,795 760,505 733,973
 Newsprint, ink and
 supplements 82,518 74,130 247,492 234,561
 Other operating
 costs 164,123 152,841 495,853 455,194
 Depreciation and
 amortization 36,363 32,030 106,611 96,628
 Total Operating
 Costs 534,810 503,796 1,610,461 1,520,356
 OPERATING INCOME 58,314 61,058 188,239 190,467
 OTHER INCOME (EXPENSE)
 Interest expense (7,773) (12,553) (33,410) (39,227)
 Interest expense
 capitalized 50 960 68 14,746
 Interest income 1,287 1,011 4,467 3,265
 Other, net 1,065 (314) (2,440) (664)
 Total (5,371) (10,896) (31,315) (21,880)
 Income before
 income taxes 52,943 50,162 156,924 168,587
 Income taxes 21,692 18,770 60,040 66,099
 INCOME BEFORE CUMULATIVE
 EFFECT OF CHANGES IN
 ACCOUNTING PRINCIPLES 31,251 31,392 96,884 102,488
 Cumulative effect of
 changes in accounting
 principles for:
 Income taxes --- --- --- 25,800
 Postretirement
 benefits other
 than pensions --- --- --- (131,000)
 Net Income (loss) $ 31,251 $ 31,392 $ 96,884 $ (2,712)
 EARNINGS PER COMMON AND
 COMMON EQUIVALENT
 SHARE
 Income before cumulative
 effect of changes in
 accounting principles $ 0.57 $ 0.57 $ 1.75 $ 1.86
 Cumulative effect of
 changes in accounting
 principles --- --- --- (1.91)
 Net income (loss) $ 0.57 $ 0.57 $ 1.75 (0.05)
 DIVIDENDS DECLARED
 PER COMMON SHARE $ 0.35 $ 0.35 $ 1.05 $ 1.05
 AVERAGE COMMON AND COMMON
 EQUIVALENT SHARES
 OUTSTANDING (000s) 54,957 55,430 55,393 55,075
 Four Quarters Ended
 Sept. 26 Sept. 27
 1993 1992
 OPERATING REVENUE
 Newspapers
 Advertising
 Retail $ 764,241 $ 753,425
 General 166,189 178,732
 Classified 540,282 500,254
 Total 1,470,712 1,432,411
 Circulation 469,641 456,295
 Other 51,775 38,552
 Total Newspapers 1,992,128 1,927,258
 Business Information
 Services 425,278 377,015
 Total Operating
 Revenue 2,417,406 2,304,273
 OPERATING COSTS
 Labor and employee
 benefits 1,016,786 981,087
 Newsprint, ink and
 supplements 329,745 329,574
 Other operating
 costs 656,388 600,177
 Depreciation and
 amortization 138,204 126,410
 Total Operating
 Costs 2,141,123 2,037,248
 OPERATING INCOME 276,283 267,025
 OTHER INCOME (EXPENSE)
 Interest expense (46,558) (53,690)
 Interest expense
 capitalized 68 20,925
 Interest income 6,280 4,486
 Other, net (8,020) 2,031
 Total (48,230) (26,248)
 Income before
 income taxes 228,053 240,777
 Income taxes 87,571 91,924
 INCOME BEFORE CUMULATIVE
 EFFECT OF CHANGES IN
 ACCOUNTING PRINCIPLES 140,482 148,853
 Cumulative effect of
 changes in accounting
 principles for:
 Income taxes --- 25,800
 Postretirement
 benefits other
 than pensions --- (131,000)
 Net Income (loss) $140,482 $ 43,653
 EARNINGS PER COMMON AND
 COMMON EQUIVALENT
 SHARE
 Income before cumulative
 effect of changes in
 accounting principles $ 2.53 $ 2.72
 Cumulative effect of
 changes in accounting
 principles --- (1.92)
 Net income (loss) $ 2.53 $ 0.80
 DIVIDENDS DECLARED
 PER COMMON SHARE $ 1.40 $ 1.40
 AVERAGE COMMON AND COMMON
 EQUIVALENT SHARES
 OUTSTANDING (000s) 55,417 54,762
 BUSINESS SEGMENT INFORMATION
 (Unaudited, in thousands of dollars)
 Quarter Ended Three Quarters Ended
 Sept. 26 Sept. 27 Sept. 26 Sept. 27
 1993 1992 1993 1992
 OPERATING REVENUE
 Newspapers $ 482,740 $469,257 $1,471,240 $1,423,202
 Business Information
 Services 110,384 95,597 327,460 287,621
 $ 593,124 $564,854 $1,798,700 $1,710,823
 OPERATING INCOME
 Newspapers $ 59,926 $ 64,797 $ 199,112 $ 199,838
 Business Information
 Services 5,885 5,079 15,598 14,872
 Corporate (7,497) (8,818) (26,471) (24,243)
 $ 58,314 $ 61,058 $ 188,239 $ 190,467
 DEPRECIATION AND
 AMORTIZATION
 Newspapers $ 23,786 $ 21,989 $ 71,139 $ 66,290
 Business Information
 Services 12,162 9,632 34,260 29,074
 Corporate 415 409 1,212 1,264
 $ 36,363 $ 32,030 $ 106,611 $ 96,628
 Four Quarters Ended
 Sept. 26 Sept. 27
 1993 1992
 OPERATING REVENUE
 Newspapers $1,992,128 $1,927,258
 Business Information
 Services 425,278 377,015
 $2,417,406 $2,304,273
 OPERATING INCOME
 Newspapers $ 289,796 $279,674
 Business Information
 Services 22,795 21,372
 Corporate (36,308) (34,021)
 $ 276,283 $267,025
 DEPRECIATION AND
 AMORTIZATION
 Newspapers $ 92,882 $ 86,731
 Business Information
 Services 43,742 38,028
 Corporate 1,580 1,651
 $ 138,204 $126,410
 -0- 10/21/93
 /CONTACT: Frank N. Hawkins Jr., 305-376-3838, or Lee Ann Schlatter, 305-376-3839, both of Knight-Ridder/
 (KRI)


CO: Knight-Ridder, Inc. ST: Florida IN: PUB SU: ERN

AW-JB -- FL007 -- 5130 10/21/93 11:22 EDT
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