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Championship Auto Racing sees lower racing fees

NEW YORK, July 22 (Reuters) - Championship Auto Racing Teams Inc. , an organizer of auto races, on Tuesday said results for the year would be worse than expected because of weak racing fees and advertising sales as well as higher costs, and it does not expect to return to profitability before 2006.

Given the difficulties facing it and expectations that it will need to raise more capital to complete its 2004 racing schedule, the company also said it has hired investment bank Bear, Stearns & Co. Inc. to help it explore financing and other strategic alternatives.

Championship Auto Racing said it does not expect to see positive earnings or cash flow any sooner than 2006.