The McGraw-Hill Companies Reports 11.9% Growth in 2nd Quarter
$0.68 diluted earnings per share in 2Q2011
2Q 2011 Highlights:
• McGraw-Hill Financial: 13.5% increase in revenue and 17.3% growth in operating profit
• Standard & Poor's: 18.6% gain in revenue and 17.3% growth in operating profit
• McGraw-Hill Education: School orders delayed to 3Q; double-digit growth in digital revenue for higher education, professional markets
• Information & Media: 11.7% increase in Business-to-Business Group's revenue
• Share repurchases: 7.7 million shares were bought back for $300 million at an average price of $38.96 in the first half of 2011
(Press Release) NEW YORK, July 28, 2011 /PRNewswire via COMTEX/— The McGraw-Hill Companies today reported diluted earnings per share of $0.68 for the second quarter of 2011, an 11.9% increase compared to the same period last year. Net income for the period increased 10.5% to $211.1 million. Revenue grew by 7.2% in the second quarter to $1.6 billion.
"In the first quarter, we said a promising year was off to a good start and our second quarter results bear that out," said Harold McGraw III, chairman, president and chief executive officer. "We have achieved the best first half revenue growth since 2007, driven by our new segment, McGraw-Hill Financial, Standard & Poor's and Information & Media's Business-to-Business Group, which all produced double-digit revenue increases in the second quarter. That performance offset a modest decline at McGraw-Hill Education, which was affected by delays in ordering and challenging comparisons.
"Based on our solid start to the year and a promising outlook for the second half, we now expect to achieve the top end of our 2011 diluted earnings per share guidance of $2.79 to $2.89.
"There has been a strong response from financial and non-financial buyers to the announcement in June that we planned to divest our Broadcasting Group. That divestiture is part of a continuing portfolio review across the company to re-evaluate our strategic core. G&A costs are also being reviewed to ensure efficiency.