(02-06) 07:22 PST New York (AP) —

McClatchy Co. swung to a profit following losses a year ago on the sale of its Minneapolis newspaper, but the publisher also said it would take a charge to reflect a sharp decline in its stock price.

The company’s operating results continued to be hard-hit by the real estate downturn in California and Florida, where it owns several newspapers, and the company said the advertising picture for 2008 wasn’t looking any better. McClatchy said it now expects first-quarter advertising to decline in the low double-digit percentage range.

McClatchy, the third-largest U.S. newspaper publisher by circulation, reported preliminary net income of $30.1 million for the final three months of the year, compared with a loss of $279.3 million in the same period a year earlier.

The latest figures did not include the expected impairment charge, which McClatchy said it would announce later when it files its annual regulatory filing.

The earnings were equivalent to 40 cents per share on continuing operations, which included an additional tax expense of 9 cents per share. Accounting for that item, the earnings were a penny ahead of analysts estimates of 48 cents per share, as compiled by Thomson Financial.

In the same period a year ago, the company’s net loss was $3.40 per share. Without the one-time losses, earnings from continuing operations were 94 cents per share.

Revenues fell 15 percent to $573.4 million. The year-ago period included one more week than the most recent quarter. Without that effect, revenues fell 9 percent, the company said.

McClatchy said it was still performing its annual test of the values of assets carried on its books, and expected to take a fourth quarter charge because of a decline in its stock price, which is now down about half from the $19.98 level it saw at the end of the third quarter.

Investors took McClatchy’s results in stride, sending its shares up 20 cents or 2 percent to $10.56 in early trading Wednesday.

The stocks of many newspaper publishers have fallen badly out of favor on Wall Street as an economic downturn exacerbates advertising declines, which were already falling as readers and advertising dollars migrate online.

McClatchy CEO Gary Pruitt said in prepared remarks that the company’s business was seeing a pronounced cyclical impact from the downturns in California and Florida, and its papers there accounted for two-thirds of the company’s revenue loss for 2007.

On a full-year basis, McClatchy reported a net loss of $1.27 billion or $15.52 per share, which included an earlier write-down of $1.4 billion, versus a loss of $155.6 million for 2006.

Full-year revenues rose to $2.26 billion from $1.68 billion, reflecting the addition of 20 newspapers the company bought from the former Knight Ridder Inc. Assuming the company owned the same set of papers in both years and adjusting for the extra week in 2006, revenues would have been down 7.9 percent, with advertising revenues down 8.6 percent.

Goalkeeper Robert Green saved a last-minute penalty from Jermain Defoe to atone for an earlier howler and ensure West Ham earned a point from a thrilling encounter at Upton Park.

It had been shaping up as another poor day for English goalkeepers when Green misjudged a free-kick 66 minutes in and Michael Dawson headed over him for Tottenham’s equaliser. Carlton Cole had earlier given the home side the lead, capitalising on a blunder by Younes Kaboul.

But Spurs thought they would be able to take all three points deep into injury time when former West Ham striker Defoe was brought down by Lucas Neill. His spot kick was well placed, but weakly hit, and Green dived to low to his left to push it on to the post.

In a game of often expansive attacking play from both sides, Tottenham began brightly and had a goal ruled out for offside as early as the fourth minute. Green could only parry a shot from Jermaine Jenas into the path of Aaron Lennon. The England winger tucked the ball away from eight yards out but was immediately flagged offside, and just minutes later Tottenham had a penalty appeal rejected when Dimitar Berbatov appeared to be tripped inside the penalty area.

In the 12th minute West Ham striker Carlton Cole found himself in the book for leading with his arm when challenging Gareth Bale. Three minutes later West Ham defender George McCartney almost scored an own goal when he connected with a free-kick from Jenas but, much to his relief, the ball went inches wide.

West Ham took the lead in the 19th minute then they took full advantage of some calamitous play from Kaboul. His attempted pass the ball upfield but ricocheted off Luis Boa Morte, who burst into the penalty area before finding Nolberto Solano with a clever reverse pass. Solano shaped to shoot from an acute angle but instead cleverly laid the ball across the six-yard-box allowing the unmarked Cole to place into an empty net.

In the 23rd minute Hayden Mullens tested goalkeeper Paul Robinson with an 18-yard drive which the England stopper had to collect at the second attempt. And West Ham were prevented from increasing their advantage in the 26th minute when Robinson pulled off a point-blank save to deny Boa Morte.

Moments later Berbatov should have done better for Spurs when a cross from Bale was misjudged by Mullins, but the Bulgarian failed to the hit the target from the edge of the six-yard-box.

Referee Mike Riley was at the centre of controversy five minutes before the break when he refused to award Spurs a penalty. Tottenham midfielder Didier Zokora had found the unmarked Robbie Keane with a delightful through ball and the Irishman only had Green to beat in order to level the scores.

The Spurs striker chipped the ball over the head of the West Ham goalkeeper who then appeared to trip him. The ball flashed wide of the post and Riley waved away furious appeals for a penalty from Keane and a host of other Tottenham players.

In the 62nd minute West Ham replaced Mark Noble with Scott Parker - making his first appearance since September after injury - but Spurs hauled themselves level in the 66th minute when defender Dawson headed Jenas’s free-kick off the underside of the crossbar. Moments later Spurs replaced Keane with former West Ham favourite Defoe to the expected howls of abuse from the home fans incensed both by his defection from the club and his failure with England.

West Ham continued to be dangerous on the counter-attack and Cole sent a 20-yard drive flashing inches wide of the target in the 79th minute while Parker forced Robinson into a stunning save moments later. Jenas then had to clear a header from McCartney off the line in the final minute. After that, there was only time for Defoe’s miss.

(02-06) 06:46 PST NEW YORK, (AP) —

Treasury prices fell Wednesday after a report showed workers producing at a stronger-than-forecast pace and labor costs in check at the end of 2007.

The Labor Department said productivity grew by an annual rate of 1.8 percent in the fourth quarter. The result was down significantly from the 6 percent advance seen in the third quarter, but well above the 0.5 percent gain projected in a Thomson/IFR analysts poll.

Unit labor costs, a key inflation gauge monitored by the Federal Reserve, advanced 2.1 percent in the final quarter, below the 3 percent rise projected by Thomson IFR.

Productivity usually drops off when the economy slows down because companies are left with too many workers for the amount of work on hand. Some economists will use the news to support a case that the economy has entered a recession.

Although Wall Street suffered a case of fright due to recession fears on Tuesday that caused a massive stock selloff, the latest report did not deter investors from trying to send stocks higher at Wednesday’s opening.

The expected gains for stocks put pressure on Treasurys as the two markets often trade in opposite directions.

The benchmark 10-year Treasury note fell 11/32 to 105 9/32 with a yield of 3.60 percent, up from 3.56 percent late Tuesday.

The 30-year long bond declined 20/32 to 110 16/32 with a 4.36 percent yield, up from 4.33 percent late Tuesday.

The 2-year note lost 3/32 to 100 11/32 with a yield of 1.95 percent, up from 1.92 percent late Tuesday.

Selling pressure on bonds Wednesday was compounded by the fact the Treasury Department will auction $13 billion in new 10-year Treasury notes in the afternoon. Institutional investors often lighten their Treasury holdings ahead of an auction to make room in their portfolios for new supply.

The Federal Reserve will hold its next regular monetary policy meeting on March 18, but many investors expect the central bank to order another rate cut before then.

The Fed in January cut rates by an unusually large 1.25 percentage points late last month, but many investors think additional easing is needed and the bank has indicated it is willing to reduce the fed funds target down further.

Trading of fed funds futures contracts Wednesday indicated investors think there is a 50 percent chance for a 0.25 percentage point reduction in February.