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Apr 23 – Apr 29, 2012 Edition McGraw-Hill Reports Record 1st Quarter
NEW YORK, April 26, 2012– The McGraw-Hill Companies earlier this week reported record revenue of $1,331 million in the first quarter, an increase of 6% compared to the same period last year. Net income from continuing operations was $123 million and diluted earnings per share were $0.43.
Excluding the impact of one-time costs related to the Growth and Value Plan, adjusted net income from continuing operations increased 19% to $144 million and adjusted diluted earnings per share increased 30% to a record of $0.51. This increase was primarily due to strong growth in Commodities & Commercial and S&P Capital IQ / S&P Indices.
"With record first quarter results, we are off to a great start to 2012," said Harold McGraw III, chairman, president, and chief executive officer of The McGraw-Hill Companies. "The results are particularly gratifying in light of all of the effort our employees are making to prepare for the separation of the Corporation by year-end into two highly focused industry leaders."
The Corporation continues to make progress on the Growth and Value Plan and remains on track to establish two separate industry leaders by year-end:
The Corporation has received a ruling from the Internal Revenue Service agreeing to the tax-free status for the spin-off of McGraw-Hill Education. The Corporation plans to file the Form 10 in the coming weeks. Progress continues on achieving at least $100 million in cost savings, on a run-rate basis, by year-end. Global effort progressing towards two separate, highly focused industry leaders. S&P Capital IQ / S&P Indices bolstered with global acquisitions of R2 Financial Technologies and QuantHouse, headquartered in Toronto and Paris, respectively.
The Outlook: "2012 guidance remains unchanged with adjusted diluted earnings per share of $3.25 to $3.35," said Mr. McGraw. "For 2012 we anticipate continued strength across our financial businesses. In education, I am encouraged by recent growth trends in Higher Education and Professional. In addition, our cost reduction efforts are offsetting government funding challenges in the elementary-high school portion of our education business."
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