McLean, Va. - Shares of Gannett (NYSE: GCI) dropped more than 7% by midday Wednesday after the publisher of USA Today and 84 other daily papers said that its second-quarter profit dropped 36%.

Citing a sharp decline in classified advertising and other factors, the company reported net income of $233 million, down from $366 million a year ago. Revenue fell 10% to $1.72 billion.

Gannett said that weak business conditions, along with its dwindling stock price, will force it to write down as much as $2.9 billion, to reflect the company's declining value.

"The weakening economy had a dramatic impact on our results," said Craig Dubow, Gannett's chairman, president and CEO.

"The impairment charges reflect, in part, these challenging economic conditions and pressure on our stock price but do not affect our ability to manage our businesses or make strategic acquisitions."

Related Links:
http://www.gannett.com/news/pressrelease/2008/2ndq08.pdf (PDF)