Iowa media concern Meredith Corp., which publishes magazines targeted at women and runs WFSB Channel 3 in Rocky Hill, says that it will record a special charge of about $10 million in its fiscal fourth quarter as a result of layoffs and the closure of ReadyMade magazine, The Associated Press reports.
After tax, the charge will be $6 million, or 13 cents per share.
Despite the charge, the Des Moines, Iowa company said the cost-cutting actions allowed it to devote more resources to growth initiatives, including an expansion of digital platforms such as apps for major magazine title.
The company said it now expects its fiscal 2011 earnings to be at the higher end of its previous guidance range of $2.72 to $2.78 per share.
Analysts surveyed by FactSet expect earnings of $2.76 per share.
The company said ReadyMade was closed because of ongoing weakness in the home category. The special charge for the fourth quarter also reflects reductions of about 75 positions companywide.
