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McGRAW-HILL REPORTS INCREASE IN SECOND QUARTER EARNINGS

 NEW YORK, July 19 /PRNewswire/ -- McGraw-Hill, Inc. (NYSE: MHP) today reported that second quarter net income grew by 17.3 percent to $43,177,000. Revenue for the period increased by 1.4 percent to $490,907,000. Earnings per share were 88 cents versus 75 cents a year ago.
 For the first six months of 1993, income grew by 18.9 percent to $58,427,000 before a 1992 cumulative adjustment. Revenue increased by 2 percent to $957,854,000. Earnings per share for the first half were $1.19 versus $1.00 a year ago before the cumulative adjustment.
 "Another outstanding performance by Standard & Poor's and improved results at J.J. Kenny and our joint venture, the Macmillan/McGraw-Hill School Publishing Company, helped produce the second quarter gain," said Joseph L. Dionne, chairman and chief executive officer of McGraw-Hill, Inc.
 Financial Services: "Revenue for this segment grew by 14.5 percent and operating income climbed by 25.1 percent as Standard & Poor's Ratings Group continued to benefit from the robust new issue volume in corporate, municipal, structured finance and international markets. New S&P rating services for private placements, credit risk assessment and insurance companies also contributed to the fine performance.
 "We got help from S&P information products, including Platt's and Compustat and J.J. Kenny showed fine growth as investments in technology there led to important productivity gains.
 Information and Publication Services: "A slowdown in advertising was a major factor in the 8.2 percent decline in revenue and the 20.6 percent drop in operating profits for this segment. Advertising pages at Business Week, as measured by the Publishers Information Bureau, fell 16 percent in April and May and didn't begin to regain momentum until June. As a result, Business Week's revenue and profits declined for the quarter versus a year ago. Some of our magazines did produce gains in the second quarter. LAN Times, UnixWorld, Aviation Week & Space Technology and Business & Commercial Aviation all showed improvement.
 "Our construction information business also continues to struggle with a subdued and selective industry recovery.
 Educational and Professional Publishing: "A recession abroad and softer than expected sales domestically led to a $2,365,000 decline in revenue and a $2,171,000 drop in operating profits for this segment. Although weak economic conditions hampered the growth of some international book operations, results were good throughout Asia. Increased profit at the Continuing Education Center partially offset weakness in other professional publishing operations.
 Broadcasting: "Revenue declined 1.7 percent and operating profits were off by 12.7 percent in the face of disappointing national business. Local business has been strong at our Denver and Indianapolis stations, but San Diego continued to battle poor economic conditions in Southern California.
 Joint Venture: "Our share of the Macmillan/McGraw-Hill School Publishing Company's profits climbed by 72.4 percent in the second quarter. Last year, the joint venture had a one-time expense of $3.0 million for relocating the companyUs headquarters. This year, we got a major boost when Texas started ordering our successful new reading program in June.
 "In the second quarter, we also benefited from a reduction in the company's full year effective tax rate from 42.7 percent to 40.6 percent. We cut the effective tax rate primarily by consolidating some of our subsidiaries. That action enabled us to reduce our state tax burden.
 "The slow growth of the economy will result in a challenging second half for some of our businesses, particularly in advertising and construction. But continued growth in financial services from new financing, new products and global expansion should keep us moving ahead."
 McGRAW-HILL, INC.
 Statement of Income
 Periods ended June 30, 1993 and 1992
 (Amounts in thousands, except earnings per share)
 Three Months ended 1993 1992
 Operating revenue $ 490,907 $ 484,275
 Expenses - net 422,579 417,369
 Share of profit of
 Macmillan/McGraw-Hill
 joint venture 11,232 6,516
 Income from operations 79,560 73,422
 Interest expense - net (7,812) (9,208)
 Income before taxes on income 71,748 64,214
 Provision for taxes on income 28,571 27,420
 Income before cumulative adjustment 43,177 36,794
 Cumulative effect on prior years of
 changes in accounting (Note) -- --
 Net income $ 43,177 $ 36,794
 Earnings per common share:
 Income before cumulative adjustment $ 0.88 $ 0.75
 Cumulative adjustment -- --
 Net income $ 0.88 $ 0.75
 Average number of common shares
 outstanding 48,983 48,899
 McGRAW-HILL, INC.
 Statement of Income
 Periods ended June 30, 1993 and 1992
 (Amounts in thousands, except earnings per share)
 Six Months 1993 1992
 Operating revenue $ 957,854 $ 939,083
 Expenses - net 834,368 824,009
 Share of (loss) of
 Macmillan/McGraw-Hill
 joint venture (9,113) (9,948)
 Income from operations 114,373 105,126
 Interest expense - net (16,011) (19,333)
 Income before taxes on income 98,362 85,793
 Provision for taxes on income 39,935 36,634
 Income before cumulative adjustment 58,427 49,159
 Cumulative effect on prior years of
 changes in accounting (Note) -- (124,587)
 Net income/(loss) $ 58,427 $ (75,428)
 Earnings per common share:
 Income before cumulative adjustment $ 1.19 $ 1.00
 Cumulative adjustment -- (2.55)
 Net income/(loss) $ 1.19 $ (1.55)
 Average number of common shares
 outstanding 49,067 48,891
 McGRAW-HILL, INC.
 Statement of Income
 Periods ended June 30, 1993 and 1992
 (Amounts in thousands except earnings per share)
 Latest Twelve Months 1993 1992
 Operating revenue $2,069,262 $1,996,721
 Expenses - net 1,767,286 1,714,090
 Share of profit of
 Macmillan/McGraw-Hill
 joint venture 12,115 20,075
 Income from operations 314,091 302,706
 Interest expense - net (34,235) (41,663)
 Income before taxes on income 279,856 261,043
 Provision for taxes on income 117,433 111,466
 Income before cumulative adjustment 162,423 149,577
 Cumulative effect on prior years of
 changes in accounting (Note) -- (124,587)
 Net income $ 162,423 $ 24,990
 Earnings per common share:
 Income before cumulative
 adjustment $ 3.32 $ 3.06
 Cumulative adjustment -- (2.55)
 Net income $ 3.32 $ 0.51
 Average number of common shares
 outstanding 48,958 48,842
 Note: 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
 Periods ended June 30, 1993 and 1992
 Revenue
 1993 1992
 (Thousands of dollars)
 Three Months
 Information and Publication
 Services $158,499 $172,667
 Educational and Professional
 Publishing 118,609 120,974
 Financial Services 186,148 162,514
 Broadcasting 27,651 28,120
 Total company $490,907 $484,275
 Operating Profit
 1993 1992
 (Thousands of dollars)
 Information and Publication
 Services $ 18,552 $ 23,365
 Educational and Professional
 Publishing 1,278 3,449
 Financial Services 52,431 41,897
 Broadcasting 8,426 9,650
 Total operating segments 80,687 78,361
 Share of profit of Macmillan/
 McGraw-Hill joint venture 11,232 6,516
 General corporate expense - net (12,359) (11,455)
 Interest expense - net (7,812) (9,208)
 Total company $ 71,748(A) $ 64,214(A)
 (A) Income before taxes on income
 McGRAW-HILL, INC.
 Operating Results by Segment
 Periods ended June 30, 1993 and 1992
 Revenue
 1993 1992
 (Thousands of dollars)
 Six Months
 Information and Publication
 Services $306,252 $328,337
 Educational and Professional
 publishing 228,544 230,710
 Financial Services 373,232 328,655
 Broadcasting 49,826 51,381
 Total company $957,854 $939,083
 Operating Profit
 1993 1992
 (Thousands of dollars)
 Information and Publication
 services $ 29,493 $ 34,439
 Educational and Professional
 publishing (366) 1,936
 Financial Services 105,439 85,542
 Broadcasting 12,313 14,816
 Total operating segments 146,879 136,733
 Share of (loss) of Macmillan/
 McGraw-Hill joint venture (9,113) (9,948)
 General corporate expense - net (23,393) (21,659)
 Interest expense - net (16,011) (19,333)
 Total company $ 98,362(A) $ 85,793(A)
 (A) Income before taxes on income
 -0- 7/19/93
 /CONTACT: Donald S. Rubin of McGraw-Hill, 212-512-4321/
 (MHP)


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

WB -- NY055 -- 3067 07/19/93 12:50 EDT
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