McGraw-Hill Beats Expectations as Profit, Earnings Increase
Breaking things down by category, education sales rose 2.6% to $520 million, with operating profit of $33.5 million (compared to a loss of $12.7 million a year ago.) But for the year education sales were still down 9.5%, at $2.4 billion. School education sales decreased 7.6% but the higher education, professional and international group increased 7.5% for the quarter, which the company attributed to "a surge in second semester ordering in the U.S. college and university market and improved performances in professional and international markets." And the K-12 market "started improving in September" after "declining steadily during the first eight months."
"Continued 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 CEO, in a statement. "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."