Newsprint producers and their principle customer, newspaper publishers, are both facing financial pressures in the current economic environment. However, there is a dramatic difference in the relative profitability of newsprint production and newspaper publishing. After two years of losses, newsprint producers are now only marginally profitable; newspaper publishing, while its once lucrative franchise has lost some of its cash-generating power, is still solidly profitable and is expected to make better-than-average returns on investment going forward.
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