Higher-Ed, Prof. Segments Spur McGraw-Hill's Earnings
The McGraw-Hill Cos. reported that its fiscal year 2004 earnings rose 9.5 percent over 2003, while its net income for the same period rose 9.9 percent, from $687.7 million to $755.8 million.
Revenues increased 10.6 percent to $1.4 billion in fourth quarter 2004, while net income for the quarter was $190 million.
In its book-publishing segments, McGraw-Hill's education division reported a 2-percent increase in revenue to $2.4 billion, while operating profit grew 5.7 percent to $340 million compared to 2003.
Fourth quarter revenue in the education segment increased 4.9 percent to $529.3 million, says Harold McGraw III, chairman, president and chief executive officer of The McGraw-Hill Cos. Operating profit, however, declined 28.6-percent to $28.6 million, which the company attributed to selling and marketing costs to prepare the education segment for new opportunities in the elementary-high school market.
Revenue in the higher education, professional and international segment grew 4.8 percent to $1.1 billion in 2004 and 2.1 percent to $312.8 million in the fourth quarter compared to 2003. Its school education group's revenue dropped 0.3 percent, however, to $1.3 billion in 2004. But fourth quarter revenue rose 9.1 percent to $216.5 million compared to 2003.
"In the fourth quarter, orders of math, reading and science helped produce the McGraw-Hill school education group's best quarterly revenue increase of the year," McGraw said. "But a 30-percent decline in the new state adoption market to $530 million made year-over-year comparisons more difficult for the McGraw-Hill school education group in 2004."