The publisher of the Daily Mirror saw its shares slide after it revealed a drop in revenues and warned of the impact of a "slow and volatile" recovery.
Trinity Mirror, which also publishes a host of regional papers, said moves to slash costs sent underlying profits up 40% to £101.5m in the year to January 2.
But the news was overshadowed by a drop in revenues, down 6.9% on an underlying basis to £710.6m, and as the group admitted cost-cutting would be offset by inflation and wider economic woes.
Trinity shares lost a fifth of their value after the results.
The group said: "The board envisages a volatile and slow recovery in the UK economy as public sector spending cuts and taxation increases continue to impact consumer confidence, unemployment and the property market."
Trinity said it expects at least another £10m in savings this year, but warned this would be "more than offset" by inflation, with newsprint prices up more than 20%, and the need to invest.
The group has shed jobs in recent years to cut costs and confirmed it reduced headcount at the nationals arm by around 200 in the year after introducing editorial changes and out-sourcing work.
Analysts at Numis Securities said they would downgrade forecasts for this financial year on Trinity's gloomy outlook.
Media expert Alex deGroote at Panmure Gordon said underlying trading was worse than expected.