McGraw-Hill reported sales and earnings below expectations and pared back their full-year earnings forecast this morning. Sales at McGraw-Hill Education, which will be kicked out of the corporate nest next year to stand on its own, fell 11.1 percent, to $937 million. Adjusted operating profit fell by the same percentage, at $314.7 million. The decline came almost entirely from the School Education group in particular, where declining state textbook adoptions drove a 21.4 percent drop in sales to $420.4 million. Higher ed and professional sales were “essentially flat.”
