News Corp. Drops After Analysts Reduce Profit Estimates

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News Corp., the media company controlled by Rupert Murdoch, fell as much as 6.5 percent in New York trading Wednesday after analysts cut their profit estimates because of weak local television and newspaper advertising sales.

Sanford Bernstein & Co.’s Michael Nathanson cut his annual operating profit projection by 5 percent to $5.46 billion, while Michael Morris of UBS AG lowered his forecast 2 percent to $5.48 billion. News Corp. on Tuesday predicted slower growth in fiscal 2009 after reporting fourth-quarter results.

News Corp. executives said 2009 operating profit will increase 4 percent to 6 percent from a base of $5.13 billion in the 12 months just ended. Chief Financial Officer David DeVoe predicted a “more challenging” year for newspapers and local TV stations.






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