Cable provides Media General with access to dynamic consumer and business markets in northern Virginia. Our strategy is to maximize opportunities in this core business while adding complementary businesses and services. Results at our Newsprint Division in 1997 reflected the low price of newsprint during most of the year. Newsprint selling prices began to rise in late 1997, and we expect that 1998 results will show a marked improvement. We continue implementing cost reduction measures to increase efficiency and mitigate the cyclicality in newsprint pricing.
Improved efficiency is the heart of our plan for future growth.
At Garden State we underwent a major reorganization during 1997. We opened a new modern sorting and bailing recycling center in Paterson, New Jersey, and closed two older, less efficient plants in Hackensack. Looking ahead, we believe there are still areas with potential for improvement in production and sales. We plan to achieve growth and expansion by improving product and process. Another highlight of the year was the substantial success of Media General Financial Services.