SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 6, 1997
THE READER'S DIGEST ASSOCIATION, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-10434 13-1726769
(State or other juris- (Commission File (I.R.S. Employer
diction of incorporation Number) Identification No.)
or organization)
Pleasantville, New York 10570-7000
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code:
(914) 238-1000
Page 1 of 5 pages.
ITEM 5. Other Events.
Filed herewith as Exhibit 99.1 is a copy of the
company's news release, issued today, relating to its first
quarter fiscal 1998 estimates.
ITEM 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
(a) Financial statements of business acquired
Not applicable
(b) Pro forma financial information
Not applicable
(c) Exhibits
Number Description
99.1 Press Release of The Reader's Digest
Association, Inc. dated October 6, 1997
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
THE READER'S DIGEST ASSOCIATION, INC.
(Registrant)
Date: October 6, 1997
/s/GEORGE S. SCIMONE
George S. Scimone
Vice President and Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release of The Reader's Digest
Association, Inc. dated October 6, 1997
Exhibit
READER'S DIGEST COMMENTS ON FIRST QUARTER FISCAL 1998 ESTIMATES
PLEASANTVILLE, NY, OCTOBER 6, 1997 - The Reader's Digest
Association, Inc. (NYSE: RDA, RDB) said today it expects to
report earnings for its fiscal 1998 first quarter ended September
30, 1997 below analysts' estimates.
George V. Grune, who was named Chairman and Chief Executive
Officer of Reader's Digest on August 11, 1997 said, "Total
revenues in the fiscal first quarter are expected to be lower
than the comparable period a year ago. This decline reflects
lower than anticipated customer response to promotional mailings
in most major markets and the negative effect of the recent
strength of the dollar on international revenues. In addition,
first quarter earnings reflect increased investment in product
development, testing and list development, the benefits of which
are expected to be realized in the future. As a result, the
Company expects to report a per share loss between $0.05 and
$0.10, before charges, in the first quarter."
Mr. Grune added: "The new management team we have assembled in
the past month is focused intensely on developing and
implementing strategies to revitalize the business and resume
profitable growth."
The Company said it will also report non-recurring charges of
approximately $70 million, reflecting severance costs associated
with work force reductions in Europe, the United States and at
the corporate level; and costs associated with the
discontinuation of certain businesses and the realignment of
business processes and operations.
The Company said it expects to report its full results for the
quarter on October 29, 1997.
The Reader's Digest Association, Inc. is the preeminent direct
marketer and global publisher of distinctive products that
inform, enrich, entertain and inspire people of all ages and all
cultures around the world. Global headquarters is in
Pleasantville, New York.
******
Statements contained in this news release, if not historical, are
forward-looking statements, which involve risks and uncertainties
that could cause actual results to differ materially from the
results described in the forward-looking statements. A discussion
of factors that could affect the company's results is included in
the company's reports filed with the Securities and Exchange
Commission.
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