The Associated Press June 16, 2011, 6:04PM ET

Meredith says it will have $10M charge in 4Q

Meredith Corp., which publishes magazines targeted at women, said Thursday 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.

After tax, the charge will be $6 million, or 13 cents per share.

Despite the charge, the 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. Shares of Meredith were up 74 cents, or about 2 percent, to $30.41 before the close.

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.

CEO Steve Lacy noted that the company raised its dividend for the 18th straight year and reduced debt by 25 percent to $225 million.

The company, based in Des Moines, Iowa, is slated to release its fiscal 2011 earnings on July 28.


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