He said the company's newsprint operations would continue to be a drain as excess capacity and depressed demand held down prices.

The company attributed its higher profits to improved results at its newspaper and newsprint operations and to a lower income tax rate.

Operating profit dropped 9 percent, to $45 million, in the broadcast and entertainment group, and dropped 20 percent, to $2.4 million, in newsprint operations.

The company said pulp prices were soft, that uncoated papers continued to decline and that its newsprint operations has a "slight loss."

For 65 years, the newsprint operation brought steady employment here.

The Chicago-based company's Canadian newsprint operations had a 66 percent increase in operating profit.

The Kimberly-Clark Corporation extended until June 30 the deadline for an agreement that would turn its 50.5 percent owned Canadian newsprint operation over to employees.

Washington Post said that its newsprint operations rose strongly, but that the performances of other businesses owned by the company were disappointing.

The New Zealand conglomerate Fletcher Challenge has said it wants to sell its newsprint operations.

Operating profit from its newsprint operations fell 27 percent, to $16.7 million, on revenues of $109 million.