Printer Friendly

McGRAW-HILL REPORTS IMPROVED FIRST QUARTER EARNINGS

 NEW YORK, April 19 /PRNewswire/ -- McGraw-Hill, Inc. today reported that first quarter income grew by 23.3 percent to $15,250,000 before a 1992 cumulative adjustment. Revenue for the period increased by 2.7 percent to $466,947,000. Earnings per share were 31 cents versus 25 cents a year ago before the cumulative adjustment.
 "Excellent results at Standard & Poor's, J.J. Kenny and Shepard's/McGraw-Hill were key to our growth in the first quarter," said Joseph L. Dionne, chairman and chief executive officer of McGraw-Hill, Inc."
 Financial Services: "Surging new issue volume helped produce a 12.6 percent gain in revenue and a 21.5 percent increase in operating profits for this segment. The S&P Ratings Group had outstanding results in all markets -- corporates, municipals, structured finance and insurance. Increased investor interest in municipal bonds also benefited J.J. Kenny's information, evaluation and brokerage services. And S&P Information products continued to show gains, particularly in foreign markets."
 Information and Publication Services: "Softness in advertising led to a 5 percent drop in revenue in this segment, but good cost controls held the
decline in operating profits to 1.2 percent. Business Week, through cost containment and gains in circulation revenue, showed improved results despite softness in advertising. But many of our other publications couldn't escape the effect of a sluggish advertising environment. "And the slow recovery in the construction market continues to hold back F.W. Dodge, an information service for that industry."
 Educational and Professional Publishing: "A fine performance by Shepard's/McGraw-Hill, our legal publisher, and good results at the McGraw-Hill Continuing Education Center could not offset declines in college, international, medical and professional publishing operations. As a result, the segment posted an operating loss of $1,644,000 on virtually flat revenue.
 "The first quarter is never a strong one for the education businesses. Last year, we also had the benefit of sales of a new edition of the Encyclopedia of Science and Technology."
 Broadcasting: "Last year, we had the Winter Olympics and the Super Bowl. This year, we've got a recession in Southern California that is hurting our San Diego station. As a result, revenue for our television stations is down by 4.7 percent and profits fell by 24.8 percent."
 Joint Venture: "Elementary-high school publishers never produce a profit in the first quarter, so the loss posted by the Macmillan/McGraw- Hill School Publishing Company is in line with the seasonal expectations. This year's higher loss is due to increased amortization of prepublication costs and marketing expenses associated with new programs being introduced in 1993.
 "For McGraw-Hill, the first quarter is historically the smallest of the year so despite an encouraging start in 1993, the real challenge is still ahead of us.
 McGRAW-HILL. INC.
 Statement of Income
 (Amounts in thousands, except earnings per share)
 Three Months Ended March 31 1993 1992
 Operating revenue $ 466,947 $ 454,808
 Expenses - net 411,789 406,640
 Share of profit/(loss) of
 Macmillan/McGraw-Hill
 joint venture (20,345) (16,464)
 Income from operations 34,813 31,704
 Interest expense - net (8,199) (10,125)
 Income before taxes on income 26,614 21,579
 Provision for taxes on income 11,364 9,214
 Income before cumulative
 adjustment 15,250 12,365
 Cumulative effect on
 prior years of changes
 in accounting (A) -- (124,587)
 Net income/(loss) $ 15,250 $ (112,222)
 Earnings per common share:
 Income before
 cumulative adjustment $ 0.31 $ 0.25
 Cumulative adjustment -- (2.55)
 Net income/(loss) $ 0.31 $ (2.30)
 Average number of
 shares outstanding 49,063 48,867
 McGRAW-HILL, INC.
 Statement of Income
 (Amounts in thousands except earnings per share)
 Twelve Months Ended March 31 1993 1992
 Operating revenue $2,062,630 $1,969,369
 Expenses - net 1,762,076 1,693,857
 Share of profit/(loss) of
 Macmillan/McGraw-Hill
 joint venture 7,399 26,336
 Income from operations 307,953 301,848
 Interest expense - net (35,631) (44,158)
 Income before taxes on income 272,322 257,690
 Provision for taxes on income 116,282 110,033
 Income before cumulative
 adjustment 156,040 147,657
 Cumulative effect on prior years of
 changes in accounting (A) -- (124,587)
 Net income $ 156,040 $ 23,070
 Earnings per common share:
 Income before
 cumulative adjustment $ 3.19 $ 3.02
 Cumulative adjustment -- (2.55)
 Net income $ 3.19 $ 0.47
 Average number of
 shares outstanding 48,937 48,831
 (A) The cumulative adjustment reflects the adoption of FAS 106, Employers' Accounting for Postretirement Benefits Other Than Pensions, $109.5 million (net of tax benefits of $74 million),or $2.24 per share, and FAS 112, Employers' Accounting for Postemployment Benefits, $15.1 million (net of tax benefits of $10.2 million), or $.31 per share.
 McGRAW-HILL. INC.
 Operating Results By Segment
 (Thousands of dollars)
 Three Months Ended March 31, 1993 1992
 Revenue:
 Information and Publication
 Services $147,753 $155,670
 Educational and Professional
 Publishing 109,935 109,736
 Financial Services 187,084 166,141
 Broadcasting 22,175 23,261
 Total company $466,947 $454,808
 Operating Profit:
 Information and Publication
 Services $ 10,941 $11,074
 Educational and Professional
 Publishing (1,644) (1,513)
 Financial Services 53,008 43,645
 Broadcasting 3,887 5,166
 Total operating segments 66,192 58,372
 Share of (loss) of Macmillan/
 McGraw-Hill joint venture (20,345) (16,464)
 General corporate expense - net (11,034) (10,204)
 Interest expense - net (8,199) (10,125)
 Total company $ 26,614(A) $ 21,579(A)
 (A) Income before taxes on income
 -0- 4/19/93
 /CONTACT: Donald S. Rubin of McGraw-Hill, Inc., 212-512-4321/
 (MHP)


CO: McGraw-Hill, Inc. ST: New York IN: PUB SU: ERN

SM -- NY074 -- 1101 04/19/93 11:33 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 19, 1993
Words:947
Previous Article:UST POSTS 23 PERCENT INCREASE IN FIRST QUARTER 1993 EARNINGS PER SHARE
Next Article:MAVERICK TUBE CORPORATION PROFITS CONTINUE AHEAD OF PRIOR YEAR
Topics:


Related Articles
MCGRAW-HILL REPORTS 1991 EARNINGS
McGRAW-HILL REPORTS INCREASE IN SECOND QUARTER EARNINGS
MCGRAW-HILL REPORTS FIRST QUARTER EARNINGS
McGRAW-HILL REPORTS 30.8% INCREASE IN NET INCOME FOR THIRD QUARTER
McGRAW-HILL REPORTS FIRST QUARTER
THE McGRAW-HILL COMPANIES REPORT 10% INCREASE IN SECOND QUARTER EARNINGS
First Quarter 2003 Shows EPS Improvement; S&P Says 2003 and 2004 Earnings Will Continue to Make Gains.
On Evidence of Economic Recovery, S&P Raises Year-end Estimate for S&P 500.
The McGraw-Hill Companies Reports First Quarter Earnings Per Share of 39 Cents; Revenue Grows by 9.7% Operating Margin Improves in All 3 Segments.
The McGraw-Hill Companies Reports First Quarter Earnings Per Share of $0.41; Revenue Increases by 11.9%.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters