Diverse holdings help smooth McClatchy's ad slump.

Just as intended, diversifying its newspaper holdings around the country is helping The McClatchy Co. smooth out the economic bumps in its different markets.

Sort of.

First half profit was still 44 percent behind last year's pace.

Because of acquisitions, made mainly in the 1990s, McClatchy (NYSE:MNI) has newspapers in four regions: California, the Pacific Northwest, Minnesota and the Carolinas. About half of the revenue comes from the West and half from the East and Midwest.

For now, revenue from its Midwest and East Coast papers is down, while West Coast revenue is slightly up. That's helping -- albeit barely -- in a slack environment …