By John Eckberg
The Cincinnati Enquirer

Home & Garden Television, the Food Network and other cable television properties continued to pile on advertising revenues and profits for Cincinnati-based E.W. Scripps Co. in 2003.

The company, in announcing fourth-quarter and full-year results, said blockbuster returns in the Scripps Network cable division - HGTV, the Food Network, DIY and Fine Living - brought a 64 percent increase in profits when compared with 2002.

Profits from the division were $204 million in 2003, compared with $125 million in 2002.

Net income for the entire company was $271 million or $3.32 a share, in 2003, compared with net income of $188 million, or $2.34 a share, in 2002.

Officials also announced a quarterly dividend increase from 15 cents to 17.5 cents a share.

Shares of Scripps closed at $92.20, down 97 cents.

Despite the robust ad market for its cable television arm, results were flat for the newspaper division of 21 daily newspapers, which includes the Cincinnati Post.

Full-year revenues in the newspaper division were held back by persistent weakness in local retail and help-wanted advertising, Kenneth W. Lowe, president and chief executive officer for Scripps, said.

The company saw profits in the newspaper division fall by 0.6 percent to $269 million in 2003.

Companywide, net income for the fourth quarter of 2003 was $102 million, or $1.24 a share, compared with 94 cents in the fourth quarter of 2002.

Revisions to the company's tax obligations increased net income by $27.1 million, officials said.

The company was notified this month by Gannett Co. Inc., publisher of The Cincinnati Enquirer, that a joint operating agreement with Scripps to publish and manage business operations for the Cincinnati Post will end in 2007.

Scripps intends to publish the Post at least until Dec. 31, 2007, officials said.

"That gives us four full years to explore options," Lowe said.

Lowe told analysts that forecasts for ad revenues were bullish with a projected 30 percent increase in advertising revenues in the first quarter of 2004.

"The economic recovery appears to be gaining traction," he said.

Looking forward to 2004, plans for a Hispanic cable network depend on ongoing research, said Frank Gardner, senior vice president and chairman of Scripps Networks.

"We're being very cautious about this idea," Gardner said. "On the surface, it seems like a slam dunk. But the more we learn, the more complex and less obvious it becomes."

In other reports:

• Meridian Bioscience Inc.: The Newtown-based medical test manufacturer said it posted fiscal first-quarter profit of $1.8 million, or 12 cents a share, a 26 percent jump from the same period in 2002.

The company said it recorded a quarterly sales record with $18.1 million in net revenues, thanks in part to the early outbreak of flu nationwide.

Meridian makes a test for the influenza virus, and that helped fuel the 13 percent jump compared with the first fiscal quarter in 2002.

The company also reiterated its expectation to finish fiscal 2004 with a profit of between $71 million and $75 million. Shares of Meridian closed down 14 cents at $11.90.

• Sara Lee Corp.: The consumer-goods company, whose food business is based in Blue Ash, said fiscal second-quarter net income dropped to $312 million, or 39 cents a share, from $348 million, or 42 cents, in the year-earlier period, as sales of clothing such as its Hanes brand declined.

Total sales in the quarter ended Dec. 27 rose 5 percent to $5.02 billion, helped by a drop in the dollar against the euro.

Sales of meats, including Hillshire Farm sausages, rose 11 percent while household goods such as Sanex deodorants in the United Kingdom climbed 13 percent.

Operating income for Sara Lee Meats rose 2 percent to $115 million. Bakery sales, including Sara Lee's cakes and breads, increased 1 percent. Sales of coffee such as the Senseo brand in Europe rose 12 percent.

Sara Lee shares fell $1.01 to $20.49.

Enquirer reporters James Pilcher and Mike Boyer contributed. E-mail jeckberg@enquirer.com.