Journal Communications cuts dividend to save cash

MILWAUKEE - Journal Communications Inc., publisher of the Milwaukee Journal Sentinel and other papers, said Tuesday it lowered its quarterly dividend to 2 cents per share from 8 cents in an effort to preserve cash.

The dividend is payable March 6 to shareholders of record at Feb. 24.

"The board made the decision to reduce the dividend in order to help maintain financial flexibility in this difficult economic environment," said Steven J. Smith, chairman, in a statement. "Given the uncertain economic outlook, we believe that this action will allow the company to direct a greater portion of our cash flow to debt reduction."

The company publishes the Milwaukee Journal Sentinel and 55 community newspapers and shoppers in Wisconsin and Florida. It owns and operates 35 radio stations and 12 television stations, and operates another under a local marketing agreement.

The publishing sector has continued to be squeezed as readers and advertisers increasingly migrate to the Internet. Companies have attempted to deal with the shift by cutting costs and ramping up Web operations. Softening economic conditions have also added to the industry's troubles.

Shares fell 21 cents to close earlier at $1.57.

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