NEW YORK, Oct. 10 /PRNewswire-FirstCall/ -- CBS Corporation (NYSE:
CBS.A and CBS) today revised its business outlook for the full year 2008.
The continued economic slowdown in the United States has adversely affected
advertising revenues across the Company's businesses, primarily at the
local level, and the effects of the current financial crisis are likely to
cause further declines in advertising spending. As a result of these market
conditions, the Company is revising its 2008 full year business outlook for
both adjusted operating income before depreciation and amortization
("OIBDA") and adjusted operating income to a decline of mid-teens versus
2007.
The Company said that, based on preliminary information, its third
quarter performance is expected to reflect revenue growth of approximately
3% over the comparable period last year, led by higher syndication revenue
and recent acquisitions. Further, the Company now expects to report
adjusted diluted earnings per share of approximately $.42 to $.44 for the
third quarter of 2008, compared to $.51 for the third quarter of 2007.
In addition, as a result of these recent adverse market conditions, the
Company is currently performing an interim impairment test on its existing
goodwill, other indefinite lived intangible asset balances and investments.
Based on preliminary results, the Company expects to incur a non-cash
impairment charge of approximately $14 Billion, in the third quarter of
2008 to reduce the carrying value of goodwill, intangible assets related to
FCC licenses and investments.
The Company's business outlook excludes stock-based compensation
expense, restructuring charges, impairment charges and the impact of
acquisitions and dispositions.
The Company continues to generate significant free cash flow and
expects to maintain its current dividend policy. CBS plans to provide
additional information regarding its third quarter results and business
outlook during its regular quarterly conference call October 30, at 8:30 AM
(ET), following the release of its earnings announcement.
Cautionary Statement Concerning Forward-looking Statements
This news release contains both historical and forward-looking
statements. All statements, including Business Outlook, other than
statements of historical fact are, or may be deemed to be, forward-looking
statements within the meaning of section 27A of the Securities Act of 1933
and section 21E of the Securities Exchange Act of 1934. These
forward-looking statements are not based on historical facts, but rather
reflect the Company's current expectations concerning future results and
events. Similarly, statements that describe our objectives, plans or goals
are or may be forward-looking statements. These forward-looking statements
involve known and unknown risks, uncertainties and other factors that are
difficult to predict and which may cause the actual results, performance or
achievements of the Company to be different from any future results,
performance or achievements expressed or implied by these statements. These
risks, uncertainties and other factors include, among others: advertising
market conditions generally; changes in the public acceptance of the
Company's programming; changes in technology and its effect on competition
in the Company's markets; changes in the Federal Communications laws and
regulations; the impact of piracy on the Company's products, the impact of
the consolidation in the market for the Company's programming; other
domestic and global economic, business, competitive and/or other regulatory
factors affecting the Company's businesses generally; the impact of union
activity, including possible strikes or work stoppages or the Company's
inability to
negotiate favorable terms for contract renewals; and other factors
described in the Company's news releases and filings with the Securities
and Exchange Commission including but not limited to the Company's most
recent Form 10-K. The forward-looking statements included in this document
are made only as of the date of this document, and under section 27A of the
Securities Act and section 21E of the Exchange Act, we do not have any
obligation to publicly update any forward-looking statements to reflect
subsequent events or circumstances.
About CBS Corporation
CBS Corporation (NYSE: CBS.A and CBS) is a mass media company with
constituent parts that reach back to the beginnings of the broadcast
industry, as well as newer businesses that operate on the leading edge of
the media industry. The Company, through its many and varied operations,
combines broad reach with well-positioned local businesses, all of which
provide it with an extensive distribution network by which it serves
audiences and advertisers in all 50 states and key international markets.
It has operations in virtually every field of media and entertainment,
including broadcast television (CBS and The CW - a joint venture between
CBS Corporation and Warner Bros. Entertainment), cable television (Showtime
and CBS College Sports Network), local television (CBS Television
Stations), television production and syndication (CBS Paramount Network
Television and CBS Television Distribution), radio (CBS Radio), advertising
on out-of-home media (CBS Outdoor), publishing (Simon & Schuster),
interactive media (CBS Interactive), music (CBS Records), licensing and
merchandising (CBS Consumer Products), video/DVD (CBS Home Entertainment),
in-store media (CBS Outernet) and motion pictures (CBS Films). For more
information, log on to http://www.cbscorporation.com.
SOURCE CBS Corporation
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Related links:
http://www.cbscorporation.com
CONTACT:
Media, Gil Schwartz, +1-212-975-2121,
gdschwartz@cbs.com, Jeremy Murphy, +1-212-975-4577,
jeremy.murphy@cbs.com, or Investors, Martin Shea,
+1-212-975-8571, marty.shea@cbs.com, Adam Townsend,
+1-212-975-5292, adam.townsend@cbs.com
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