Media companies are being battered by a growing slowdown in advertising and by a wrenching transition to the digital age.

Either crisis would be more than enough for a company. Both happening at the same time could be the most difficult challenge big media has ever faced.

Thanks to some movie and television hits, Time Warner has weathered the storm fairly well, but its sinking stock price, like those of other media companies, indicates that few believe it can continue to do so for long. Today, the largest media conglomerate lowered its earnings outlook for the full year, citing restructuring charges and "the challenging economic environment."

The company is taking an additional $100 million to $125 million in restructuring charges, mainly at the magazine unit Time Inc., as it cuts about 6 percent of the workforce. It has already announced $182 million in charges as the Warner Bros. unit absorbs New Line Cinema. The total bill for layoffs and restructuring could easily top $300 million.

As a result, Time Warner says adjusted operating profit will increase 5 percent, compared with an earlier forecast of 7 to 9 percent.

Time Inc. faces "some serious cyclical headwinds," and a reorganization to focus on internet publishing should eventually pay off, Chris Marangi, an analyst at Gabelli & Co., told Bloomberg News.

For the third quarter, Time Warner reported earnings of $1.07 billion, or 30 cents per share, compared with $1.09 billion, or 29 cents per share, in the quarter a year earlier. Revenue was essentially flat, at $11.7 billion.

Cable and television production (HBO, Turner) continued to be very strong businesses. Magazines and AOL were the problem children.
 
Movies were just so-so, despite the box office success of The Dark Knight and the home-video release of Sex and the City: The Movie. Revenue declined 9 percent and earnings rose just 2.6 percent. The quarter a year ago featured Harry Potter and the Order of the Phoenix, Rush Hour 3, Hairspray, and the video release of 300.

There was no news on what will be done with AOL, despite some signs earlier this fall of a possible merger with Yahoo. The online business continues to bleed: Revenue fell 17 percent, profit slumped 9 percent, and the number of subscribers fell 26 percent for the quarter.