The Reader’s Digest Association Inc. reported a net loss of $1.1 million for the quarter ended Sept. 30, a massive drop from net income of $22.3 million posted for the same quarter last year.
Revenue for the quarter fell about 10% to $497.5 million from the $551.5 million pulled in during the same period in 2000.
“The tough economy, business challenges and after-effects of the devastating Sept. 11 [terrorist] event,” were contributing factors in the weak results, CEO Thomas O. Ryder said in a statement.
In addition, Reader’s Digest in Pleasantville, NY, reported a $34 million drop in operating profits for its direct-mail-dependent North America Books and Home Entertainment (BHE) unit. Even though BHE — which is reportedly reorganizing its U.S. business — has reduced its mail quantities, it is continuing to experience lower responses to mailings.
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