APN News and Media Ltd (ASX:APN) expects its earnings to fall as a result of natural disasters in two of the regional newspaper group’s most important markets.
The impact of the Queensland floods and Christchurch earthquake is expected to take $9 million off earnings before interest and tax in the first-quarter of the 2011 financial year.
APN News and Media had earlier cautioned its Australian Regional Media division earnings would fall in January because of the Queensland floods and now advises the impact is likely to moderate throughout the second quarter.
The company says the Queensland economy is still volatile but expected to recover and return to its strong growth trajectory.
In New Zealand, APN News and Media says the earthquake had hit an already subdued economy coupled with a lower exchange rate.
However, the company says despite its current weakness the New Zealand economy is forecast to return to growth in 2012.
In the 2010 calendar year APN News and Media booked a net profit of $114.7 million.
