• by Erik Sass  @eriksass1, January 20, 2009

Lee Enterprises--the publisher of the St. Louis Post-Dispatch, among other newspapers--said its total revenues fell 13% to $243.6 million in the first quarter of its fiscal year, roughly overlapping with the fourth quarter of 2008. Driven by the continuing slide in revenues, Lee's earnings plummeted 69% to $6.8 million.

To deal with the sharp economic downturn and the continuing secular decline in newspaper print ad revenues, Lee chairman and CEO Mary Junck said the company sliced about 10% of its workforce in the last quarter and was making further cuts as needed.

While suffering, Lee is no different from its industry peers. All have witnessed a long-term decline in print revenue accelerate into a headlong plunge. The crisis has been characterized by defaults, bankruptcies and the closing of newspapers.

In December, the Tribune Co. filed for bankruptcy protection, indicating that it is unable to service its $13 billion debt under the terms originally agreed with lenders. Philadelphia Media Holdings, the publisher of The Philadelphia Inquirer, defaulted in June, followed by The Journal Register Co. in July.

Less than two weeks ago, the Hearst Corp. put the Seattle Post-Intelligencer up for sale, saying it will close the newspaper if it can't find a buyer in the next two months. The Rocky Mountain News, one of two dailies serving the Denver metro area, will also shutter if it does not find a buyer by mid-January, according to owner E.W. Scripps. The Journal Register Co. said it may close up to 13 newspapers in Connecticut if no buyer is found.