New York Times takes charge for New England papers

The Times now estimates that the drop in value worked out to $166 million in the third quarter, up from last month's estimate of $100 million to $150 million.

The Times said any more adjustments to the drop in the properties' value will be reflected in the company's fourth-quarter earnings.

With the new charge and related tax adjustments, the Times had a net loss of $106 million, or 74 cents a share, in the third quarter, compared with a profit of $13.4 million, or 9 cents a share, a year earlier.

Reporting preliminary results last month, the Times said its net income was $6.53 million, or 5 cents a share--before accounting for the charge. The new estimate was detailed in a filing Friday with the Securities and Exchange Commission.

Like all other newspaper publishers, the Times company has been suffering from an ongoing migration of readers to the Internet. Advertising prospects worsened this summer as the weak economy prompted advertisers to cut back spending further.

Although the conditions affect all Times company papers, how much a property's value has declined depends partly on when the asset was purchased, what it cost and whether the price included a valuation of future revenue.

When revenue prospects drop, the company must revalue the property and take a charge for the difference.

The Times bought the Globe in 1993 for $1.1 billion and the Telegram & Gazette of Worcester, Mass., in 1999 for $295 million. The company also bought a 49 percent stake in the free Metro Boston daily in 2005.

In addition to lowered projections for cash flows, primarily from the loss of print advertising revenue, the company said Metro Boston experienced lower-than-expected growth and projections continue lower than previously believed.