McGraw-Hill Companies Reports 43.2% Increase in Fourth Quarter
Quarter 2009 Highlights:
earnings per share of $0.53
income increases by 44.3% to $167.3 million
margin expands in all segments
Guidance: $2.55 to $2.65 per diluted share vs. $2.33 in 2009
NEW YORK, Jan. 26 /PRNewswire-FirstCall/ --
The McGraw-Hill Companies (NYSE: MHP) today announced diluted earnings per share
of $0.53 for the fourth quarter of 2009, a 43.2% increase compared to $0.37 for
the same period in 2008. It was the first quarterly increase in diluted earnings
per share for The McGraw-Hill Companies since the third quarter of
quarter earnings per share in 2009 included a pre-tax gain of $10.5 million
($6.7 million after tax), or $0.02 per diluted share from the divestiture of
December. In the fourth quarter of 2008, diluted earnings per share included a
pre-tax restructuring charge of $26.3 million ($16.4 million after tax), or
$0.05 per diluted share.
income for the fourth quarter of 2009 increased by 44.3% to $167.3 million.
Fourth quarter revenue grew by 3.3% to $1.5 billion, the first quarterly
increase in revenue since the third quarter of 2007.
recovery in the corporate new issue market here and overseas at Standard &
Poor's Credit Market Services and an upswing in higher education, professional
and international markets enabled us to finish 2009 positively and set the stage
for more growth in 2010," said Harold McGraw III, chairman, president and chief
executive officer of The McGraw-Hill Companies. "Increased revenue and tight
cost controls contributed to substantial improvement in our operating margin in
the fourth quarter compared to the same period last year."
The McGraw-Hill Companies reported diluted earnings per share of $2.33, which
reflected a loss of $0.03 per diluted share on the divestiture of Vista
Research, net restructuring charges of $0.03 per diluted share and a gain on the
divestiture of BusinessWeek of
$0.02 per diluted share. In 2008, diluted earnings per share of $2.51 included
restructuring charges of $0.14 per diluted
income in 2009 declined by 8.6% to $730.5 million. Revenue for the year
decreased by 6.3% to $5.95 billion.
Education: Revenue for this
segment in the fourth quarter of 2009 increased by 2.6% to $520.0 million.
Operating profit for the period was $33.5 million compared to a loss of $12.7
million in the fourth quarter of 2008, which included $11.4 million in
restructuring charges. Foreign exchange rates increased revenue by $8.2 million
but reduced operating profit by $2.0 million.
year 2009, revenue declined 9.5% to $2.4 billion at McGraw-Hill Education.
Including restructuring charges of $11.6 million, operating profit was off 14.1%
to $276.0 million compared to 2008. In 2008, operating profit of $321.4 million
reflected restructuring charges of $25.3 million. Foreign exchange rates reduced
revenue by $26.6 million in 2009 and had an immaterial impact on operating
McGraw-Hill School Education Group's revenue declined 7.6% to $149.8 million in
the fourth quarter and fell by 18.4% to $1.1 billion for full year 2009 compared
McGraw-Hill Higher Education, Professional and International Group's revenue
increased 7.5% to $370.2 million in the fourth quarter and was off by 0.1% to
$1.3 billion for full year 2009 versus 2008.