Circulation revenues were adversely affected by the strike in Detroit. Evening newspaper circulation continued to decline, reflecting the national trend. Most of the evening and Sunday circulation volume loss was attributable to the strike in Detroit. Circulation volume at certain of the Company's newspapers was affected by management efforts to reduce less valuable outstate or fringe circulation, which is costly to deliver. In 1996, efforts will be continued to better manage the quality of the circulation base and related costs.
Management also plans further circulation price increases.
Circulation volume and revenues at Detroit are recovering from the impact of the strike and are expected to continue to do so. The Company expects further circulation revenue growth at most of its newspaper properties. In the classified category, gains in employment advertising were strongest, followed by significant improvement in automotive. Business conditions for local retail advertisers improved in 1994 in much of the country, offsetting lagging demand in the East and Atlantic groups. The Company continued its efforts to increase circulation and household penetration at all of its local daily and Sunday newspapers.