McGraw-Hill reported third quarter sales, with their education division dropping 11.6 percent to $1 billion compared, as operating profit fell 16 percent to $298 million. The decline came entirely from the K-12 line, which fell almost 20 percent, “in a 2009 state new adoption market that deteriorated all year as budgetary pressures led a growing number of school districts to postpone purchases.”Release Meanwhile, Barnes & Noble can’t catch a break from Wall Street analysts no matter what they do. On Friday Credit Suisse reduced their target price for the company to $16 per share (about two dollars below its current […]
Publishers
Pearson OK at Q3
In one of those UK “trading updates” that doesn’t disclose actual data, Pearson tells investors the company is “trading ahead of expectations” so far this fiscal year and raised its earnings guidance a few pence, to “at or above 60 pence a share” for the full year. Primarily, the pound has stayed weak enough against the dollar and the company has “outperformed the US schools market.” At Penguin, currency neutral sales are down 4 percent, but with the weak pound actual sales are up 12 percent “as the expected tough retail market conditions were largely offset by a good publishing […]
Trade and Education Sales Have Big Gains for Scholastic
Scholastic reported a 14 percent increase in sales from continuing operations for their fiscal first quarter, at $315.6 million, with an improved net loss of $23 million (compared to a loss of $49.1 million a year ago.) The company says revenues were boosted by “higher sales of educational technology to schools and of children’s books in retail channels during the quarter.” CEO Dick Robinson cites “the arrival of Federal stimulus funds in local districts” as one factor in boosting education sales. In their children’s book publishing and distribution division, sales rose almost $15 million, to $76.2 million, though they had […]
Trade Falls Further at Wiley, As "Stabilizing" Is Seen
Sales fell 10 percent in Wiley’s professional/trade segment in their fiscal first quarter, at $90 million (with a third of that decline due to currency exchange). But the company says “retail market conditions appear to be stabilizing, and major accounts are replenishing inventory. The second quarter began positively, as reflected in strong August sales.” Contribution to profit also declined 10 percent, at $16 million. Companywide, sales of $388 million were down three percent, while income before taxes of $37.1 million was up three percent. Higher education was the only segment with sales growth in the period, rising 12 percent to […]
Sales Down 4 Percent at Random As Profits Are Hit Harder
Sales fell in the first six months of the fiscal year at Random House by 4 percent, declining 32 million euros to 734 million euros, as operating EBIT dropped even more at just 20 million euros for the period (down from 31 million euros a year ago.) The company blamed the decline on “the continued distressed economic environment and the reduction in inventory levels by major bookstores in the US.” And they say that “an extensive, international cost-saving initiative and the restructuring of the US publishing groups put in place last year partially offset this development.” In a letter to […]
Earnings Soar at Hachette in First Half of 2009
Lagardere reported complete results for the first six months of their fiscal year today (having already reported preliminary sales in July). The publishing division’s EBIT was 112 million euros, up by 61% from last year, on sales of 1.009 billion euros. The company congratulates itself on their “excellent performance” and exudes that it was “all the more remarkable given that the publishing sector is actually contracting slightly in all the markets where we operate.” (Indeed the parent company took a total of 332 million euros in impairment, amortization and restructuring charges during the period.) In the first quarter, out of […]