Securities and Exchange Commission
                          Washington, D.C.  20549
                                                       
                                 FORM 10-Q


   (Mark One)
       x       QUARTERLY REPORT PURSUANT TO SECTION 13 OR
      ---      15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
               For the quarterly period ended September 28, 1997
  
      ---      TRANSITION REPORT PURSUANT TO SECTION 13 OR
               15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
               For the transition period from _____to_____           
     
  
                   Commission File Number:  1-10333
  

                        CENTRAL NEWSPAPERS, INC.
        (Exact name of registrant as specified in its charter)
   
                                 
        Indiana                                    35-0220660   
(State or other jurisdiction                     (I.R.S. Employer 
of incorporation or organization)             Identification Number)
  
  
  135 North Pennsylvania Street, Suite 1200, Indianapolis, Indiana 46204
                  (Address of principal executive office)

                              (317) 231-9200
                      (Registrant's telephone number)
                                                     

Indicate by check mark whether the registrant has (1) filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was 
required to file such reports), and (2) has been subject to such filing 
requirements for the past 90 days.
     
                         YES   x   NO      
                              ---      ---

The number of shares of each class of common stock outstanding as of October 
31, 1997:
     
               CLASS A COMMON STOCK          21,989,891
               CLASS B COMMON STOCK          31,345,500
                                                               
<PAGE>2                                                                         


                         Central Newspapers, Inc.

                            Index to Form 10-Q


Part I -- FINANCIAL INFORMATION                                Page

  Item 1 -- Financial Statements:

        Consolidated Statement of Financial Position            3-4
                        
        Consolidated Statement of Income                          5    
              
        Consolidated Statement of Shareholders' Equity            6
   
        Consolidated Statement of Cash Flows                      7   

        Notes to Consolidated Financial Statements              8-9 

    Item 2 -- Management's Discussion and Analysis of                 
              Financial Condition and Results of Operations    9-14       
            
Part II -- OTHER INFORMATION                                  15-18

<PAGE>3

                            PART I.

Item 1. Financial Statements

                      CENTRAL NEWSPAPERS, INC.
            Consolidated Statement of Financial Position


                                                September 28,   Dec. 29,
ASSETS                                                  1997       1996 
(In thousands)                                   (Unaudited)
                                                 -----------  -----------


CURRENT ASSETS:
  Cash and cash equivalents                          $55,751      $36,149
  Marketable securities                               11,794       25,612
  Accounts receivable (net of allowances of
    $3,092 and $1,638)                                77,921       90,023
  Inventories                                         11,481        8,912
  Deferred income tax benefits                         7,178        7,263
  Other current assets                                10,930        3,503
                                                 -----------  -----------
       Total current assets                          175,055      171,462
                                                 -----------  -----------


PROPERTY, PLANT AND EQUIPMENT:
  Land                                                18,604       18,225
  Buildings and improvements                         122,062      121,785
  Leasehold improvements                               4,255        4,255
  Machinery and equipment                            378,665      367,173
  Construction in progress                             6,577        1,414
                                                 -----------  -----------
                                                     530,163      512,852
       Less accumulated depreciation                 243,088      215,872
                                                 -----------  -----------
                                                     287,075      296,980
                                                 -----------  -----------

OTHER ASSETS:
  Land held for development                            3,105        3,118
  Goodwill and other intangibles                     115,902       75,449
  Investment in Affiliate                              8,615        8,867
  Other                                               31,168       31,096
                                                 -----------  -----------
                                                     158,790      118,530
                                                 -----------  -----------
TOTAL ASSETS                                        $620,920     $586,972
                                                 ===========  ===========


See accompanying notes to consolidated financial statements.

<PAGE>4


                        CENTRAL NEWSPAPERS, INC.
              Consolidated Statement of Financial Position


                                               September 28,     Dec. 29,
LIABILITIES AND SHAREHOLDERS' EQUITY                   1997         1996 
(In thousands, except share data)                (Unaudited)
                                                 -----------  -----------
CURRENT LIABILITIES:
  Accounts payable                                   $14,956      $19,079
  Accrued compensation                                20,082       17,052
  Dividends payable                                    5,293        5,180
  Accrued expenses and other liabilities              16,251       13,914
  Federal and state income taxes                                    5,880
  Deferred revenue                                    23,888       18,034
  Short-term debt                                     34,400
                                                 -----------  -----------
       Total current liabilities                     114,870       79,139
                                                 -----------  -----------
DEFERRED INCOME TAXES                                 28,544       26,602
                                                 -----------  -----------
LONG-TERM DEBT                                         2,678        2,678
                                                 -----------  -----------
POSTRETIREMENT AND OTHER NONCURRENT LIABILITIES       85,489       81,759
                                                 -----------  -----------
MINORITY INTEREST IN SUBSIDIARY                        1,606        9,244
                                                 -----------  -----------
REDEEMABLE PREFERRED STOCK ISSUED BY SUBSIDIARY       18,920
                                                 -----------  -----------
SHAREHOLDERS' EQUITY:
  Preferred stock--issuable in series:
    Authorized--25,000,000 shares
    Issued--none
  Class A common stock--without par value:
    Authorized--75,000,000 shares
    Issued and outstanding--22,071,225 and 
     23,237,711 shares                                27,910       24,259
  Class B common stock--without par value:
    Authorized--50,000,000 shares
    Issued and outstanding--31,345,500 and 
     31,553,000 shares                                    63           63
  Retained earnings                                  340,460      363,365
  Unamortized value of restricted stock               (1,410)      (1,627)
  Unrealized gain on available-for-sale securities     1,790        1,490
                                                 -----------  -----------
                                                     368,813      387,550
                                                 -----------  -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY          $620,920     $586,972
                                                 ===========  ===========


See accompanying notes to consolidated financial statements.

<PAGE>5
<TABLE>

                                  CENTRAL NEWSPAPERS, INC.
                             Consolidated Statement of Income
                                      (Unaudited)
  
<CAPTION>

(In thousands, except per share data)
                                                        13 Weeks Ended              39 Weeks Ended     
                                                 September 28, September 29, September 28, September 29,
                                                      1997         1996         1997        1996 
                                                  -----------  -----------   -----------  -----------                       
<S>                                                  <C>          <C>           <C>          <C>
OPERATING REVENUES:
  Advertising                                        $129,431     $114,728      $395,790     $344,561
  Circulation                                          35,642       32,398       106,545      100,070
  Other                                                 8,834        1,892        22,293        5,000
                                                  -----------  -----------   -----------  -----------
                                                      173,907      149,018       524,628      449,631
                                                  -----------  -----------   -----------  -----------
OPERATING EXPENSES:
  Compensation                                         59,068       55,832       177,434      169,068
  Newsprint and ink                                    25,390       25,310        76,846       87,554
  Other operating costs                                45,426       34,280       128,422      101,673
  Depreciation and amortization                        10,843        9,184        32,179       26,745
  Asset impairment cost                                                                         4,226
  Work force reduction cost                             2,632          117         9,355        1,220
                                                  -----------  -----------   -----------  -----------
                                                      143,359      124,723       424,236      390,486
                                                  -----------  -----------   -----------  -----------
OPERATING INCOME                                       30,548       24,295       100,392       59,145

OTHER INCOME (principally investment income)              813        1,041         3,364        4,348

OTHER EXPENSES                                           (623)        (237)       (1,613)        (754)
                                                  -----------  -----------   -----------  -----------
INCOME BEFORE INCOME TAXES                             30,738       25,099       102,143       62,739

PROVISION FOR INCOME TAXES                             12,752       10,229        42,304       25,903
                                                  -----------  -----------   -----------  -----------
INCOME BEFORE MINORITY INTEREST AND
  EQUITY IN AFFILIATE                                  17,986       14,870        59,839       36,836

MINORITY INTEREST IN SUBSIDIARIES                        (688)        (408)       (1,975)        (916)

EQUITY IN AFFILIATE, NET OF TAX                           180          604          (255)       1,951
                                                  -----------  -----------   -----------  -----------
NET INCOME                                            $17,478      $15,066       $57,609      $37,871       
                                                  ===========  ===========   ===========  ===========

NET INCOME PER COMMON SHARE                              $.69         $.57         $2.22        $1.42              


DIVIDENDS DECLARED PER CLASS A COMMON SHARE              $.21         $.19          $.59         $.53 

AVERAGE COMMON SHARES
  OUTSTANDING (combined Class A and 
   equivalent Class B shares)                          25,229       26,571        25,918       26,673


<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>6
<TABLE>


                                     CENTRAL NEWSPAPERS, INC.
                         Consolidated Statement of Shareholders' Equity
                                         (Unaudited)

<CAPTION>
(In thousands, except  share data)                                                                            Unrealized
                                                                                                  Unamortized   Gain on
                                            Common Stock            Common Stock                     Value of  Available-
                                              Class A                 Class B            Retained  Restricted  for-Sale
                                          Shares     Amount       Shares      Amount     Earnings      Stock  Securities
                                     ----------- ----------  -----------  ----------   ----------  ---------- ---------     
<S>                                   <C>           <C>       <C>                <C>     <C>        <C>          <C>    
BALANCE AT JANUARY 1, 1996            23,520,611    $18,967   31,553,000         $63     $338,436                $1,275

  Net income (39 weeks)                                                                    37,871
  Dividends declared:
    Class A common stock                                                                  (12,439)
    Class B common stock                                                                   (1,672)
  Exercise of stock options              130,150      2,937
  Repurchase of Class A common stock    (384,700)      (423)                              (13,265)
  Issuance of restricted stock            52,500      1,903                                          ($1,903)
  Amortization of restricted stock                                                                       177
  Change in net unrealized gain on
    available-for-sale securities                                                                                   136
                                     ----------- ----------  -----------  -----------   ---------  ---------- ---------
BALANCE AT SEPTEMBER 29, 1996         23,318,561     23,384   31,553,000           63     348,931     (1,726)     1,411

  Net income (13 weeks)                                                                    23,663
  Dividends declared:
    Class A common stock                                                                   (4,417)
    Class B common stock                                                                     (600)
  Exercise of stock options               24,550        991
  Repurchase of Class A common stock    (105,400)      (116)                               (4,212)
  Amortization of restricted stock                                                                        99
  Change in net unrealized gain on 
    available-for-sale securities                                                                                    79
                                     ----------- ----------  -----------  -----------   ---------  ---------- ---------
BALANCE AT DECEMBER 29, 1996          23,237,711     24,259   31,553,000           63     363,365     (1,627)     1,490

  Net income (39 weeks)                                                                    57,609
  Dividends declared:
    Class A common stock                                                                  (13,243)
    Class B common stock                                                                   (1,853)
  Exercise of stock options              139,281      4,707
  Repurchase of Class A common stock  (1,332,267)    (1,475)                              (65,319)
  Repurchase of Class B common stock                             (17,500)                     (99)
  Issuance of restricted stock, net of  
   cancellations                           7,500        419                                             (419)
  Amortization of restricted stock                                                                       636
  Common stock conversion                 19,000                (190,000)
  Change in net unrealized gain on 
    available-for-sale securities                                                                                   300
                                     ----------- ----------  -----------  -----------   ---------  ---------- ---------
BALANCE AT SEPTEMBER 28, 1997         22,071,225    $27,910   31,345,500          $63    $340,460    ($1,410)    $1,790
                                     =========== ==========  ===========  ===========   =========  ========== =========

<FN>
See accompanying notes to consolidated financial statements.
</TABLE>

<PAGE>7

                                  CENTRAL NEWSPAPERS, INC.
                          Consolidated Statement of Cash Flows
                                      (Unaudited)


(In thousands)
                                                     39 Weeks Ended
                                               September 28, September 29,
                                                        1997         1996 
                                                 -----------  -----------
OPERATING ACTIVITIES:
  Net income                                         $57,609      $37,871
  Items which did not use (provide) cash:
    Depreciation and amortization                     32,179       26,745
    Postretirement and pension benefits                5,098        4,814
    Loss (gain) on disposition of assets                 (74)       4,025
    Minority interest in earnings of subsidiaries      1,975          916
    Equity earnings in Affiliate                         255       (2,076)
    Deferred income taxes                              1,412       (1,753)
    Amortization of restricted stock awards              636          177
    Other                                                370          929
  Net proceeds from trading securities                 2,160       41,850
  Net change in other current assets and liabilities  10,548           62
                                                 -----------  -----------
       Net cash provided by operating activities     112,168      113,560
                                                 -----------  -----------
INVESTING ACTIVITIES:
  Purchases of property, plant and equipment-net     (18,144)     (37,135)
  Purchases of available-for-sale securities                      (24,659)
  Proceeds from available-for-sale securities         11,409       52,036
  Acquisition of subsidiaries                        (33,219)     (60,509)
  Other                                               (6,027)      (5,684)
                                                 -----------  -----------
       Net cash used by investing activities         (45,981)     (75,951)
                                                 -----------  -----------
FINANCING ACTIVITIES:
  Cash dividends paid                                (14,818)     (13,617)
  Dividends paid to minority interest                 (1,159)        (989)
  Proceeds from exercise of stock options              2,685        2,131
  Borrowings of short-term debt-net                   34,400
  Principal repayments of long-term debt                (800)      (3,500)
  Repurchase of common stock                         (66,893)     (13,688)
                                                 -----------  -----------
       Net cash used by financing activities         (46,585)     (29,663)
                                                 -----------  -----------
INCREASE IN CASH AND CASH EQUIVALENTS                 19,602        7,946
                      
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD        36,149       26,142
                                                 -----------  -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD             $55,751      $34,088
                                                 ===========  ===========
                                                 
SUPPLEMENTAL CASH FLOW INFORMATION:
  Issuance by subsidiary of redeemable preferred stock
     in exchange for Class A common stock of 
     subsidiary                                      $18,920
  Income taxes paid during the period                 51,324      $31,750
  Interest paid during the period                        748          520



See accompanying notes to consolidated financial statements.

<PAGE> 8

                         CENTRAL NEWSPAPERS, INC.
                Notes to Consolidated Financial Statements
                                (Unaudited)


1. Central Newspapers, Inc. and its subsidiaries (the "Company") are primarily
engaged in the publishing and distribution of newspapers.  Revenues are
principally derived from advertising and newspaper sales in the Phoenix, Arizona
and Indianapolis, Indiana metropolitan areas.  The Company also has an 80%
interest in the Westech group of companies which are predominately in the jobs
fair business and a 13.5% interest in Ponderay Newsprint Company ("Affiliate"),
a partnership formed to own a newsprint mill in the State of Washington. 
     
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and revenues and expenses
as of and for the period ending with the financial reporting date.  Actual
results could differ from those estimates.
 
2. The accompanying unaudited consolidated financial statements do not include
all of the information and disclosures which are normally included in Form 10-K
and the annual report to shareholders. These financial statements should be read
in conjunction with the Company's audited consolidated financial statements and
related notes for the year ended December 29, 1996.  The accompanying
consolidated financial statements have been prepared in accordance with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X.  The consolidated 
statement of financial position at December 29, 1996 has been derived from 
audited financial statements.  In the opinion of the Company's management, the 
unaudited consolidated financial statements reflect all adjustments which are 
necessary to present fairly the Company's financial position, results of 
operations and cash flows for the interim periods presented. All adjustments are
of a normal recurring nature.  Such statements are not necessarily indicative of
the results to be expected for the full year.  

3.  The Company's fiscal year ends on the last Sunday of the calendar year.  The
years ending December 28, 1997 and December 29, 1996 each comprise 52  weeks.

4.  Net income per common share is computed based on the weighted average number
of common shares outstanding.  The Class B common shareholders have the right to
convert their shares into shares of Class A common stock at the ratio of ten
shares of Class B common stock for one share of Class A common stock.  The Class
B common stock is included in the computation as if converted into Class A 
common stock.

5.  In February 1997 the Financial Accounting Standards Board issued SFAS No.
128, "Earnings Per Share."  This statement establishes new standards for
reporting earnings per share.  This standard is effective for interim and annual
periods ending after December 15, 1997.  It is not expected to have a material
impact on the Company's earnings per share.  

6.  During 1997 and 1996, the Company reduced its work force in response to
circulation distribution changes, technological changes and the closure of the
Phoenix afternoon newspaper.  Certain employees were offered retirement benefits
through a non-qualified supplemental retirement plan.  Year-to-date 1997 work
force reduction costs were $9.4 million.

7.  On March 19, 1996 the Board of Directors authorized the repurchase of up to
1.0 million shares of the Company's Class A common stock.  The shares may be
purchased over three years on the open market or in privately negotiated
transactions. The Company has repurchased 154,900 shares during 1997 and a total
of 645,000 shares under this authorization through September 28, 1997.

<PAGE> 9

8.  On May 20, 1997 the Company repurchased an aggregate of 1,177,367 shares of
the Company's Class A common stock from three non-profit organizations at $49.50
per share, plus interest from April 11, 1997, for total consideration of $58.6
million. This repurchase was not part of the March 19, 1996 repurchase program. 
On May 8, 1997, the Company entered into a $60 million unsecured, uncommitted,
short-term credit agreement of which $39.4 million was drawn to partially fund
this repurchase. The balance of the repurchase amount was financed with existing
cash and through the sale of investments.  As of September 28, 1997, $34.4
million remains outstanding on the short-term credit agreement at an annual
interest rate of approximately 6%.

9.  On January 3, 1997, the Company acquired the remaining 9.8% of Indianapolis
Newspapers, Inc. ("INI") common stock that it did not already own.  This
transaction, which was recorded using purchase accounting, was accomplished by
issuing to the minority shareholders an aggregate of 1,892 shares of newly
created, non-voting, INI preferred stock, with an aggregate stated value of 
$18.9 million, in exchange for the shares of INI common stock owned by them. The
preferred stock provides for aggregate annual dividends of $1.3 million on a
cumulative basis, is callable in five years by INI, and is redeemable at any 
time by the shareholders of INI at the stated value plus accrued but unpaid
dividends. This transaction is not expected to have a dilutive effect on future 
earnings.

10. In February 1997, the Company acquired 80% of the Santa Clara, California
based Westech group of companies for $34.8 million. The transaction was recorded
using purchase accounting.  The group, which had 1996 sales of approximately $20
million, includes Westech ExpoCorp., which organizes job fairs for the high
technology industry, High Technology Careers, which publishes High Technology
Careers Magazine and Virtual Job Fair, an internet-based resume posting and
research service and JobsAmerica, which organizes job fairs for service industry
positions.  The transaction generated approximately $32.4 million of goodwill
which is being amortized on a straight line basis over 15 years.  

11. Certain amounts in the financial statements have been reclassified to
conform with the 1997 presentation.

Item 2.  Management's Discussion and Analysis of Financial Condition and       
         Results of Operations

GENERAL  

The Company's principal line of business is newspaper publishing.  Revenues are
derived primarily from advertising and newspaper sales in the Phoenix, Arizona
and Indianapolis, Indiana metropolitan areas.  The Company also has an 80%
interest in the Westech group of companies, which is predominantly in the jobs
fair business and a 13.5% interest in Ponderay, a partnership formed to own a
newsprint mill in the State of Washington. The analysis of the third quarter and
nine month period of 1997 compared with comparable 1996 periods should be read
in conjunction with the fiscal 1996 consolidated financial statements and the
accompanying notes to the consolidated financial statements.

The Company's business tends to be somewhat seasonal, with peak revenues and
profits generally occurring in the second and fourth quarters of each year.

RECENT EVENTS

On June 24, 1997 the Company completed the registration and resale of 2,354,733
shares of its Class A common stock priced at $64.125 per share.  The shares were
sold by three non-profit beneficiaries of the estate of Enid Goodrich, the widow
of an original investor in the Company.  No new shares were issued in this
transaction and the Company received no proceeds from the sale.

<PAGE> 10

On May 20, 1997 the Company purchased an aggregate of 1,177,367 shares of Class
A common stock from the beneficiaries of the Enid Goodrich estate at $49.50 per
share, plus interest from April 11, 1997, for total consideration of $58.6
million.  The shares were retired by the Company.

In February 1997, the Company acquired 80% of the Westech group of companies. 
Based in Santa Clara, California, the group consists of Westech ExpoCorp., which
organizes job fairs for the high technology industry; High Technology Careers,
which publishes High Technology Careers Magazine and Virtual Job Fair
(http://www.vjf.com), an internet-based resume posting and research service; and
JobsAmerica, which organizes job fairs for service industry positions.  Westech
had approximately $20 million of revenues in 1996.  On June 30, 1997 Westech
acquired the assets of Target Career Fairs, a Boston based company that 
organizes job fairs for the high technology industry in the eastern portion of 
the U.S., including the cities of Boston, Raleigh, Orlando, Philadelphia and St.
Louis. Target had 1996 revenues of approximately $3 million.

Effective January 18, 1997, the Company ceased publication of its afternoon
newspaper, The Phoenix Gazette, and realigned the news gathering structure of
its morning newspaper, The Arizona Republic.  These changes resulted in the 
Company recording a one-time pre-tax charge to earnings of approximately $4.2 
million in 1997 and are expected to result in a reduction in operating expenses 
of approximately $5.0 million in 1997 and ongoing operating expense savings in
future years of approximately $6.4 million.  Approximately 85 positions were
eliminated as a result of these actions.

On January 3, 1997, the Company acquired the remaining 9.8% of Indianapolis
Newspapers, Inc. ("INI") common stock that it did not already own.  This
transaction, which was recorded using purchase accounting, was accomplished by
issuing to the minority shareholders an aggregate of 1,892 shares of newly
created, non-voting, INI preferred stock with an aggregate stated value of $18.9
million in exchange for the shares of INI common stock owned by them.  The
preferred stock provides for aggregate annual dividends of $1.3 million on a
cumulative basis, is callable in five years by INI, and is redeemable at any 
time by the shareholders of INI at the stated value plus accrued but unpaid 
dividends. This transaction is not expected to have a dilutive effect on future 
earnings.

On October 14,1997 the Company acquired an 80% interest in Home Buyer's Fair LLC
which provides internet based services and information for people who are moving
and corporations who are relocating employees.  The Company has an option to
purchase the remaining 20%. The acquisition is not expected to have a material
impact on earnings.

THIRD QUARTER AND NINE MONTH PERIOD OF 1997 COMPARED WITH 1996

QUARTERLY RESULTS OF OPERATIONS

The Company's revenues and profits continued to reach record levels during the
third quarter and the first nine months of 1997.  Third quarter and year-to-date
earnings per share for 1997 were $.69 and $2.22 for increases of 21.1% and 
56.3%, respectively.  All periods included the effects of work force reduction 
and/or asset impairment costs ("special charges") which negatively impacted 
earnings. Had the Company not incurred the special charges, earnings per share 
would have been $.76 for the third quarter of 1997 and $2.44 for the 1997 nine 
month period, representing increases of 33.3% and 58.4%, respectively, versus 
comparable 1996 amounts.

Operating income for the third quarter and the first nine months of 1997 was
$30.5 million and $100.4 million, respectively, which represented increases of
25.7% and 69.7% over comparable 1996 periods.  The 1997 periods included the
effects of the Westech and McCormick acquisitions (the "acquisitions") and all
1997 and 1996 periods included the impact of the special charges.  Operating

<PAGE> 11

results, excluding the effects of the acquisitions and the special charges were
as follows:

Operating Results-Exclusive of special charges and acquisitions:



                         Third Quarter      %         Year-to-date      %
                         -------------                ------------
                         1997     1996    Change     1997      1996   Change   
                         ----     ----    ------     ----      ----   ------
(In millions)
Advertising revenue     $127.4   $114.7    11.1     $387.2    $344.6   12.4
Circulation revenue       35.6     32.4     9.9      105.9     100.0    5.9
Other revenue              2.2      1.9    15.8        5.4       5.0    8.0
                         -----    -----              -----     -----   
     Total revenue       165.2    149.0    10.9      498.5     449.6   10.9
                         -----    -----              -----     -----   

Compensation              57.0     55.8     2.2      171.2     169.1    1.2
Newsprint and ink         25.2     25.3     (.4)      75.8      87.5  (13.4)
Other operating costs     42.8     34.3    24.8      120.9     101.7   18.9
Depreciation and
 amortization             10.2      9.2    10.9       30.0      26.7   12.4
                          ----     ----              -----     -----   
     Total expenses      135.2    124.6     8.5      397.9     385.0    3.4
                         -----    -----              -----     -----
Operating income         $30.0    $24.4    23.0     $100.6     $64.6   55.7
                         =====    =====             ======     =====

Net income for the third quarter of 1997 was $17.5 million, up 16.0% over the
same period of 1996.  For the nine month period, net income for 1997 was $57.6 
million, up 52.1% over the prior year.  Had the Company not incurred the special
charges, net income would have been $19.1 million, versus $15.1 million for the
third quarter and $63.2 million versus $41.1 million for the nine month period. 
EBITDA (operating earnings before depreciation, amortization and special 
charges) for the third quarter increased 31.0% to $44.0 million and 55.4% to 
$141.9 million during the first nine months of 1997.  

OPERATING REVENUES

The Company's third quarter and nine month revenues rose to $173.9 million and
$524.6 million for increases of 16.7% and 16.7%, respectively, when compared 
with the same 1996 periods.  Both 1997 periods included the effects of the
acquisitions.  Excluding the acquisitions, operating revenues rose 10.9% in the
third quarter and 10.9% for the nine months.

Total advertising revenues for the three and nine month periods ended September
28, 1997 were $129.4 million and $395.8 million for increases of 12.8% and 
14.9%, respectively.  Excluding the acquisitions, revenues for the same periods
increased 11.0% and 12.4%.  The increases in advertising revenues were primarily
due to strong retail and classified linage gains in Indianapolis, especially in
the department stores, recruitment, automobile and real estate sectors, and in
Phoenix, where both increased pricing and linage gains, primarily in the
recruitment advertising sector, contributed to the overall gains.  National
advertising linage increased significantly in both major markets.  Since
September 1996, Phoenix raised advertising prices in the range of 5-6%.

Circulation revenues for the third quarter and year-to-date periods increased to
$35.6 million and $106.5 million, respectively, for increases of 10.0% and 6.5%
when compared with 1996.  The acquisitions did not significantly affect
circulation revenues.  The overall increase is primarily in response to a
circulation distribution system change (resulting in revenue increases of $3.6
million and $7.1 million for the third quarter and nine-month periods) and a
September, 1996 increase in the single copy and home delivered price of the
Sunday paper, both in Indianapolis.  The closure of The Phoenix Gazette in
January, 1997 did not have a significant impact on revenues since The Arizona

<PAGE> 12

Republic gains in daily circulation for the third quarter and year-to-date have
more than offset Gazette losses.

Other revenues for the third quarter and year-to-date increased $6.9 million and
$17.3 million, respectively, due primarily to Westech's jobs fair business
acquired in 1997.

The following is a summary of major market linage and circulation statistics for
the third quarter and nine month periods:
     
(In thousands, except circulation)

                            Third Quarter      %        Year-to-date        %   
                            -------------               ------------
                            1997     1996    Change    1997      1996     Change
                            ----     ----   ------     ----      ----     ------

Full Run Linage in six 
 column inches: (1)
  Retail                    603.9    578.0    4.5      1,875.2   1,749.4     7.2
  National                  114.5     80.9   41.5        333.8     223.9    49.1
  Classified                787.1    719.9    9.3      2,365.0   2,082.8    13.5
                          -------  -------             -------   -------
     Total                1,505.5  1,378.8    9.2      4,574.0   4,056.1    12.8
                          =======  =======             =======   =======

Full Run Linage by Major Markets:
  Phoenix (1)               679.8    635.0    7.1      2,075.7   1,941.9     6.9
  Indianapolis              825.7    743.8   11.0      2,498.3   2,114.2    18.2
                          -------  -------             -------   -------
                          1,505.5  1,378.8    9.2      4,574.0   4,056.1    12.8
                          =======  =======             =======   =======

Net Advertising
 Revenue                 $129,431 $114,728   12.8     $395,790  $344,561    14.9

Combined Average Daily Circulation:
  Phoenix                 433,862  421,938    2.8      456,183   456,169     -- 
  Indianapolis            260,153  279,024   (6.8)     268,421   286,438   (6.3)
Sunday Circulation:
  Phoenix                 552,142  553,262    (.2)     579,331   581,834   ( .4)
  Indianapolis            391,894  403,010   (2.8)     392,955   403,682   (2.7)

(1) For comparability, linage statistics for the 13 weeks and 39 weeks ended 
September 28, 1997 and September 29, 1996 exclude linage of The Phoenix 
Gazette, which ceased publication in January, 1997.  

OPERATING EXPENSES

Compensation costs, which include fringe benefits, increased 5.8% to $59.1
million for the third quarter and 4.9% to $177.4 million for the nine month
period. Excluding the acquisitions, compensation expense increased 2.0% and 1.3%
for the same periods.  The year-over-year headcount (excluding the acquisitions)
decreased 2.5% due primarily to the Gazette closure and the conversion from a
carrier-based distribution arrangement to an agency-based distribution work 
force in Indianapolis. The lower costs associated with the reduction in 
headcount were offset by increased training expenses, contract signing bonuses,
other employee benefits and merit increases.

Newsprint and ink expense for 1997 increased .3% to $25.4 million in the third
quarter and decreased 12.2% to $76.8 million for the nine month period. 
Comparable changes without the acquisitions were decreases of .4% and 13.5%,
respectively.  The decreases in newsprint expense (excluding acquisitions) were
primarily due to lower newsprint prices during both 1997 periods when compared
with 1996.  The lower newsprint prices were offset by higher consumption in the
third quarter of 6.4% and for the nine month period of 6.9% due to sharply 
higher advertising linage in both major markets and to a new product initiative
targeting the southeast region of the Phoenix metropolitan area. Since newsprint
prices leveled out in late 1996, and began to rise in early 1997, the Company
anticipates that newsprint expense comparisons will show increases during the
last quarter of 1997.  

<PAGE> 13

Other operating costs rose 32.5% to $45.4 million for the third quarter and rose
26.3% to $128.4 million for the nine month period.  Excluding the acquisitions
and a change in the circulation delivery system in Indianapolis, other operating
costs would have increased 10.6% for both the quarter and nine month periods. 
Significant items contributing to increases in both 1997 periods versus the same
1996 periods include costs associated with a new Phoenix promotional/marketing
program, higher Arizona Republic delivery costs due to increased circulation,
computer system enhancements, new Indianapolis products, bad debt costs and
higher property taxes.

Depreciation and amortization expense for the third quarter and the year-to-date
was $10.8 million and $32.2 million, respectively, compared with $9.2 million
and $26.7 million in 1996.  Excluding the acquisitions, depreciation and 
amortization expense for 1997 would have been $10.2 million and $30.0 million, 
respectively. The expense increases were due to a new office building and client
server computer systems in Phoenix and new distribution centers and inserting 
equipment at both locations.

The Company recorded work force reduction costs in 1997 of $2.6 million in the
third quarter and $9.4 million for the nine month period.  Of the year-to-date
amounts, approximately $4.2 million resulted from the closure of The Phoenix
Gazette where approximately 85 positions were eliminated.  The balance of the
charges relates to a composing room work force reduction of 30 individuals in 
the third quarter and the conversion from the carrier-based work force to an 
agent-based circulation arrangement, both in Indianapolis.

NON-OPERATING ITEMS

Other non-operating income for 1997 (primarily investment income) decreased $.2
million in the third quarter and $1.0 million for the year-to-date primarily due
to a reduction in investable cash related to the acquisitions and the 
repurchases of common stock.  Other non-operating expenses increased in the 
third quarter due to interest expense on borrowings for the repurchase of 
1,177,367 shares of Class A common stock.  Income tax expense increased  due to 
higher taxable income. Equity in Affiliate reported income in the third quarter 
and losses for the nine month period due to mid-1997 increases in newsprint 
selling prices realized by Ponderay Newsprint Company.

LIQUIDITY AND CAPITAL RESOURCES FOR THE QUARTER ENDED SEPTEMBER 28, 1997

Net cash provided by operating activities is the Company's primary source of
liquidity.  Net cash provided by operating activities, excluding the effects of
net proceeds from trading securities for the first nine months of 1997 and 1996,
was $110.0 million and $71.7 million, respectively.  Changes for both years were
primarily attributable to net income and/or working capital differences.  The
principal uses of cash in the first nine months of 1997 were the repurchase of
Class A common stock, acquisition of Westech, capital expenditures and the
payment of dividends.  At the end of the nine month period, the Company's
available cash and investments totaled $67.5 million, up $5.8 million from the
end of 1996.  Working capital for the same period decreased $32.1 million to
$60.2 million due primarily to the use of a short-term credit facility for the
repurchase of common stock.

Total capital expenditures for the first nine months of 1997 were $18.1 million
compared with $37.1 million for the comparable 1996 period.  The Company plans
approximately $28 million of capital expenditures in 1997.  As of September 28,
1997, there were no significant formal commitments related to future capital
expenditures.

The Company announced in March, 1996 that it was authorized to repurchase up to
1.0 million shares of its Class A common stock on the open market or in 
privately negotiated transactions over a three year time period.  Through 
September 28, 1997 the Company had repurchased a total of 645,000 shares. During

<PAGE> 14

the nine months ended September 28, 1997 the Company repurchased 154,900 shares
at an aggregate cost of $8.5 million under this authorization.

On May 20, 1997, the Company repurchased 1,177,367 shares of its Class A common
stock (not related to the March 1996 authorized repurchase) at $49.50 per share,
plus accrued interest from April 11, 1997, from three non-profit beneficiaries
of the estate of Enid Goodrich. The aggregate $58.6 million transaction utilized
existing cash and investments for part of the repurchase with $39.4 million 
being obtained from a $60 million uncommitted, unsecured short-term bank line of
credit that the Company obtained May 8, 1997.  As of September 28, 1997, $34.4 
million remains outstanding under this short term bank line of credit.

Dividends of $.21 per share on the Class A common stock and $.021 on the Class
B common stock were declared during the quarter and paid October 10, 1997. Total
Class A and B dividends paid during the nine month period of 1997 were $14.8
million.

The Company has demonstrated a consistent ability to generate net cash flow from
operations.  Management believes that existing cash and investments, net cash
flows from operations and available bank credit resources are sufficient to
enable the Company to maintain its current level of operations.  Financing for
future investment opportunities is expected to come from a combination of
existing cash, new debt facilities and/or the use of equity.

OUTLOOK FOR THE REMAINDER OF 1997

The Company foresees continued growth in advertising revenues for the balance of
1997, but at a rate less than that experienced during the first nine months of
1997.  Despite the closure of The Phoenix Gazette in January, 1997, circulation
revenue is also expected to increase modestly when compared with 1996 due to 
September, 1996 price increases and circulation delivery changes in
Indianapolis.  Non-newsprint operating expenses are expected to increase at a 
rate comparable with revenue growth.  The cost of newsprint expense, the second 
largest expense item after payroll, is expected to increase during the last 
quarter of 1997; but total 1997 newsprint and ink expense is expected to be less
than comparable 1996 levels. If so, the Company expects favorable financial 
performance in the last quarter of 1997 compared with the comparable period of 
1996.

FORWARD-LOOKING STATEMENTS

This document contains material that is forward-looking in nature.  From time to
time, the Company may provide forward-looking statements relating to such 
matters as anticipated financial performance, business prospects and similar 
matters. All forward-looking statements are based upon information available to 
the Company at the time they are made and the Company assumes no obligation to 
update any forward-looking statements.  The Company notes that a variety of
factors could cause the Company's actual results to differ materially from the 
expectations expressed in the forward-looking statements.  The risks and 
uncertainties that may affect the operations, performance and results of the 
Company's business include, but are not limited to:

*  economic weakness in the Company's geographic markets
*  weakness in retail and/or classified advertising revenue due to factors     
   including retail consolidations, declines in the advertising budgets of     
   major customers, and increased competition from print and non-print         
   products
*  declines in circulation due to changing reader preferences and/or new forms 
   of information dissemination
*  fluctuations in the price of newsprint
*  an increase in distribution and/or production costs over anticipated        
   levels
*  the negative impact of issues related to labor agreements
*  new competitors emerging in our markets

<PAGE> 15


                                  PART II

                          CENTRAL NEWSPAPERS, INC.

Item 1.  Legal Proceedings -- None

Item 2.  Changes in Securities -- None

Item 3.  Default Upon Senior Securities -- None

Item 4.  Submission of Matters to a Vote of Security Holders -- None
         
Item 5.  Other Information -- None

Item 6.  Exhibits and Reports on Form 8-K

         a) Exhibits 1a and 1b -- Independent Accountant's Reports

         b) No reports on Form 8-K were filed during the quarter.

<PAGE> 16


                                SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.


                                  CENTRAL NEWSPAPERS, INC.



Dated:  October 31, 1997          By: /s/ Louis A. Weil, III
                                      ----------------------                    
                                      Louis A. Weil, III
                                      President and Chief Executive 
                                      Officer



                                  By: /s/ Thomas K. MacGillivray
                                      --------------------------                
                                      Thomas K. MacGillivray
                                      Vice President and Chief     
                                      Financial Officer