• Bloomberg, Thursday, July 17, 2008 9:15 AM

The parent of USA Today is suffering. Gannett Co., the largest U.S. newspaper publisher, dropped to its lowest level since 1990 on the New York Stock Exchange Wednesday after reporting second-quarter profits fell 36%.

Ad sales at USA Today, the biggest U.S. newspaper by circulation, fell 27% in June for its steepest monthly decline this year. Gannett's total print ad sales dropped 16% in the same period. For the quarter, national advertising for all publications sank 14%, mainly because of cutbacks by retailers and car makers.

"The economy could be tough for the foreseeable future," company chief Craig Dubow told investors. "Gannett is typically viewed as the strongest operator" in the newspaper sector, says analyst James Goss.

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