Earnings: McGraw-Hill Profits Drop 13.7 Percent; Revs Fall 6.4 Percent
This story was written by David Kaplan.
Worsening economic conditions hit BusinessWeek publisher McGraw-Hill (NYSE: MHP) on all sides of its various operations as Q3 profits fell 13.7 percent. The company reported net income of $390.2 million compared to Q307's $452 million. Revenues declined 6.4 percent to $2 billion. Most of the trouble appears to have been in the financial services segments, at the Standard & Poor's credit rating unit. Financial services was down 14.2 percent to $651.5 million, while its education segment fell 3.8 percent to $1.1 billion.
-- Business-to-Business Group: The unit which houses BW, Aviation Week, J.D. Power and Associates and other publishing brands, saw revenue grew 5.4% to $240.7 million, despite wider suffering throughout the industry. Still, BW didn't appear to be the main driver there, as ad pages for its global edition were down 13.9 percent. The main revenue growth came from Platts, an energy industry information provider. The company is forecasting revenue growth of 4- to 6 percent for the full yeara revision downward from Q2's expectation of a 6- to 8 percent rise.
By David Kaplan