Friday, August 5, 2011

Washington Post struggles through tough 2Q

The Washington Post Co., already struggling with weakness in the newspaper industry, got an even bigger headache from its Kaplan education division in the second quarter. A U.S. government scrutiny of enrollment practices at for-profit colleges such as Kaplan was the main reason the Post Co.’s earnings for the period fell 50 percent from a year ago. The results announced Friday evidently weren’t as bad as investors feared because the company’s stock increased $22.84, or more than 6 percent, to $391.06 as the broader market rallied in Friday’s afternoon volatile trading. The troubles in the Kaplan division represent a potentially daunting new problem for a company trying to reverse a deep revenue slide in a publishing division anchored by The Washington Post.

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