Reader's Digest Posts 3Q Loss

Share this content:
The Reader's Digest Association Inc., Pleasantville, NY, announced Friday diminished earnings for its fiscal third quarter of 2003 ended March 31 as well as its plan to cut at least $70 million in fixed costs globally in the next two years.


The company said it had an operating loss of $3 million in the quarter, including $16 million in restructuring charges. Revenue rose 4 percent to $563 million from $542 million in the prior-year quarter, mainly because of the additional money coming in from the acquisition of Reiman Publishing.


While profits for the U.S. Magazines segment were flat at $5 million, profits for the North America Books and Home Entertainment segment rose 46 percent to $8 million.


The restructuring of the company's international business will include a 20 percent reduction in overhead in two years as well as job cuts and consolidation.


"We plan to reduce global overheads by at least $70 million and to restore international margins, much as we continue to do at U.S. BHE, which posted a profit after several quarters of re-engineering," Thomas O. Ryder, chairman/CEO, said in a statement.


Loading links....
close

Next Article in Data/Analytics

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here