Media General Inc. swung to a loss in the second-quarter on severance costs and lower ad revenue and expects to take an additional charge of up to $550 million to write down the value of its intangible assets.

The preliminary results _ which show a loss of $129,000, or 1 cent per share, in contrast to a year-ago profit of $5.2 million, or 22 cents per share _ do not include a goodwill impairment charge expected to be between $500 million to $550 million.

The Richmond, Va.-based newspaper publisher and television station operator will determine the exact amount when it files its quarterly report with securities regulators.

President and Chief Executive Marshall Morton said it shows the "continued economic slowdown and the market's perception of media industry equity valuations."

Goodwill is listed under assets on a company's balance sheets and reflects the implied value of an intangible asset, such as a brand or intellectual property. Shares in newspaper companies have tumbled the past year, reducing the assumed value of their businesses.

Media General said the non-cash charge will not affect its ability to operate or pay debt.

The second-quarter loss reflects "a weakening economy and a continued challenging business environment in the publishing division," Morton said.

The company, whose papers include the Richmond Times-Dispatch, The Tampa Tribune and Winston-Salem Journal, has seen revenue shrink drastically in those markets as advertisers curb spending or shift it online.

The result from continuing operations was a loss of $1.4 million, or 6 cents per share, including severance charges of 14 cents per share. Without that charge, income from continuing operations was 8 cents per share.

Analysts, whose estimates typically exclude one-time charges, expected profit of 6 cents per share, according to Thomson Financial. Continued...