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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): March 31, 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
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Page 1 of 3 pages.
ITEM 5. Other Events.
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On March 31, 1997, The Reader's Digest Association,
Inc. issued a news release the text of which follows:
"READER'S DIGEST THIRD QUARTER AND FISCAL YEAR
EARNINGS TO BE BELOW MARKET EXPECTATIONS
"PLEASANTVILLE, N.Y., March 31, 1997 -- The Reader's Digest
Association, Inc. (NYSE: RDA, RDB) today announced that it
expects earnings for the third quarter ending March 31, and the
year ending June 30, to be below market expectations.
"As a result of lower than anticipated responses to many of its
third quarter promotional mailings in most markets, the company
does not expect to have customer- and revenue-led growth in the
second half of the fiscal year, as previously indicated.
Continuing weakness of European economies has also contributed to
the recovery there taking longer than previously expected.
Consequently, the company's full year earnings per share may be
in a range of $1.70 to $1.80. Actual third quarter results are
scheduled to be reported at the end of April.
* * *
"The Reader's Digest Association, Inc. is the preeminent global
publisher and direct marketer of magazines, books, music, videos
and new media products that inform, enrich, entertain and
inspire. Worldwide revenues were $3.1 billion for the fiscal
year ended June 30, 1996. Global headquarters is in
Pleasantville, N.Y.
* * *
"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. Such risks and uncertainties include the level and
rate of progress in the company's program to stabilize and
restore growth in its operations, the effect of worldwide paper
and postage costs, and the ability of the company to achieve
earnings per share growth through internal investment, strategic
alliances, joint ventures and other methods. The success of the
company's program is in turn dependent on factors such as the
effectiveness of the company's marketing strategies to grow its
customer base and improve customer response rates, especially the
impact of modified and varied promotional formats on customer
responses, as well as the appeal of the company's mix of products
and general economic conditions. A further discussion of
factors that could affect the company's results is included in
the company's reports filed with the Securities and Exchange
Commission."
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: March 31, 1997
/s/STEPHEN R. WILSON
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Stephen R. Wilson
Executive Vice President and Chief
Financial Officer
