Slowdown Hits J.D. Power Results

The McGraw-Hill Companies has reported Q2 revenue down 12.4% to $1.5 billion. Revenue and profit in its Business-to-Business Group, which includes research firm J.D. Power, were hit by weakness in the automotive sector and by deferments due to methodology changes at the vehicle research giant.

The group reported earnings per diluted share of $0.52 for the second quarter of 2009, during which it took a net pre-tax restructuring charge of $15.2 m. Net income for the quarter decreased 22.7% to $164.1m year-on-year.

Chairman, President and CEO Harold McGraw III said that in the face of challenging economic conditions, 'Cost containment will be a priority all year'. Costs and expenses were reduced by 9.5% in the second quarter.

Revenue for the Information & Media segment declined by 11.5% to $236.2m in Q2, and operating profit fell by 41.8% to $14.4m including a net pre-tax restructuring charge of $4.0m.

Revenue for the Business-to-Business Group, which in addition to J.D. Power and Associates includes Aviation Week, BusinessWeek, McGraw-Hill Construction and Platts, was down 10.2% to $215.8m with one of the factors 'weakness in the automotive sector at J.D. Power'.

In addition, the Group said revenue and profit were affected by the conversion of a number of J.D. Power's syndicated studies to an online platform, which meant that c.$3.4m of revenue and c.$2.9m of operating were deferred from the second quarter and will be spread over the 12-month service period.

Web sites: www.mcgraw-hill.com and www.jdpower.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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