NEW YORK, Oct. 28 /PRNewswire-FirstCall/ -- The McGraw-Hill Companies
(NYSE: MHP) today reported diluted earnings per share of $1.23 for the third
quarter of 2008 compared to $1.34 for the same period last year. The results
include a pre-tax restructuring charge of $23.4 million ($14.6 million after
tax) or $0.05 per diluted share primarily for severance costs related to a
workforce reduction of approximately 270 positions to contain costs and
mitigate the impact of the current and expected future economic conditions.
Including the restructuring charges, total expenses in the third quarter
decreased by 3.2% or $47.1 million, primarily driven by a $117 million
reduction in 2008 incentive compensation across the company.
Net income for the third quarter decreased 13.7% to $390.2 million.
Revenue declined 6.4% to $2.0 billion.
"A double-digit increase at S&P Investment Services, a strong performance
by our elementary-high school products in state new adoptions, growth in U.S.
college and university sales, and strength in news and pricing services for
global energy markets underscored our diversity and helped cushion the
downturn in credit and education markets in the third quarter," said Harold
McGraw III, chairman, president and chief executive officer of The McGraw-Hill
Companies. "Ongoing cost containment and cost reduction activities continue to
be a high priority for us in this environment."
Education: "Revenue for this segment declined 3.8% to $1.1 billion in the
third quarter compared to the same period last year. Reflecting a pre-tax
restructuring charge of $5.4 million in the third quarter for a workforce
reduction of approximately 90 positions and a $15.9 million decline in
incentive compensation expense, operating profit decreased by 14.5% to $351.5
million. Foreign exchange rates had no material impact on revenue and
operating profit for the third quarter.
"Revenue for the McGraw-Hill School Education Group declined by 9.1% to
$623.5 million in the third quarter. Revenue for the McGraw-Hill Higher
Education, Professional and International Group increased by 3.7% to $507.8
million.
"In the seasonally important third quarter for the elementary-high school
market, the McGraw-Hill School Education Group captured 31% of the total
available dollars in a robust state new adoption market. Strong performances
in K-5 reading and math were key to our results in this year's state new
adoption market, which is anticipated to be $925 to $950 million.
"In the Florida K-5 reading adoption, we expect to capture more than 70%
of the market. We also expect to take more than 40% of the K-12
reading/literature state new adoption market, which includes Alabama, Indiana,
Louisiana and Oklahoma. In math, we had solid results in Texas and California.
We project a 31% capture rate in the K-5 math market in Texas and similar
success in the first year of the K-8 math adoption in California, where
purchasing will continue into 2009.
"A solid performance in the growing state new adoption market, however,
could not offset lower residual and supplemental sales in both adoption states
and the open territory. The supplemental market has been soft all year, but
the sudden decline in residual sales did not hit the market until August,
normally a peak sales period each year for the school business. The decline in
residual sales reflects budgetary pressures that school districts are facing
due to higher energy and commodity costs, lower tax revenue and higher pension
and salary requirements. These higher costs drain resources that otherwise
would be used for discretionary purchases such as instructional materials.
"The worsening economic conditions were particularly acute for school
districts in large urban markets. A significant factor for many of these
districts was reduced funding for the federally supported Reading First
program, which was cut from $1 billion in prior years to $383 million in 2008.
A portion of the Reading First funding would have been used to provide
materials such as workbooks.
"As indicated by the 16.6% decline in the market's sales for August
followed by a 17.6% drop in September that was reported by the Association of
American Publishers, the reduction in residual ordering is an industry-wide
phenomenon. As a result of this unprecedented development, sales for the total
Pre-K-12 market will probably decline by 3% to 4% in 2008.
"In testing, a decrease in custom contract work and legacy products offset
growing sales from Acuity, our new formative testing program; LAS Links, our
assessments for English-language learners; and TABE diagnostic assessments and
instructional support for adult students.
"In the McGraw-Hill Higher Education, Professional and International
Group, growth in international and U.S. college and university markets offset
softness in professional markets.
"A surge in ordering in September was key to our improvement in the U.S.
college and university market. We produced gains in each of our three main
areas of academic focus: Business and Economics; Science, Engineering and
Mathematics; Humanities, Social Sciences and Languages. Growth in our digital
and custom career product lines was especially strong.
"Based on the performance of the U.S. college and university market so far
this year, we still expect the industry to grow between 4% and 6% in 2008.
"In the international marketplace, our third quarter revenue increase was
led by higher education products in Europe and the Middle East as well as the
continuing success of the 17th edition of Harrison's Principles of Internal
Medicine in India. In our Spanish-language markets, we benefited from back-to-
school sales in Spain and Mexico together with the third quarter release of
Harrison's Principles of Internal Medicine in Spanish.
"In professional markets, economically challenged retailers cut back on
orders and reduced inventory, so even though six of our new titles appeared on
best-seller lists during the third quarter, there was a decline in overall
revenue. However, our digital subscription products for professional markets
continue to produce solid growth.
"Our six new titles on best-seller lists are:
-- When Markets Collide by Mohamed El-Arian, which in October won one of the
most prestigious honors in business publishing, the Financial Times and
Goldman Sachs Business Book of the Year award,
-- Executive Warfare by David D'Alessandro,
-- Perfect Selling by Linda Richardson,
-- Always On by Christopher Vollmer,
-- Make or Break by Jay Grichnik, and
-- The Art of Engagement by Jim Haudan.
Financial Services: "Revenue for this segment declined 14.2% to $651.5
million in the third quarter compared to the same period last year. Including
a pre-tax restructuring charge of $4.1 million in the third quarter for
workforce reductions of approximately 40 positions, operating profit decreased
by 18.8% to $281.6 million. A $60 million reduction in incentive compensation
mitigated the decline in operating profit in the third quarter. Foreign
exchange rates positively affected revenue by $6.5 million and operating
profit by $11.5 million in the third quarter.
"Revenue for Standard & Poor's Credit Market Services, which provides
independent global credit ratings, credit risk evaluations and ratings-related
information and products, declined by 24.2% to $423.2 million in the third
quarter compared to the same period last year.
"Revenue for Standard & Poor's Investment Services, which provides
comprehensive value-added financial data, information, investment indices and
research, increased by 13.5% to $228.2 million in the third quarter compared
to the same period last year.
"At S&P Credit Market Services, non-transaction revenue, which includes
surveillance fees, annual contracts and subscriptions, grew by 2.3% to $319.1
million. Non-transaction revenue represented 75.4% of S&P Credit Market
Services revenue in the third quarter.
"Mirroring the sharp decline of new issue dollar volume in turbulent
global financial markets in the third quarter, transaction revenue decreased
57.7% to $104.2 million. Structured finance issuance dropped substantially and
corporates declined. Public finance issuance was down slightly in the third
quarter.
"U.S. revenue for S&P Credit Market Services was off 33.0% to $220.7
million.
"New issue dollar volume in the U.S. fell by 61.6% in the third quarter
compared to the same period last year, according to S&P estimates and reports
from Thomson Financial and Harrison Scott Publications. Corporate new issue
dollar volume was off 65.8%. Public finance declined by 1.8%. Mortgage-backed
securities plunged 98.6%. Asset-backed securities declined by 2.6%.
Collateralized debt obligations were down 85.8%.
"In Europe, new issue dollar volume declined by 39.4%.
"International ratings, accounting for 47.9% of S&P Credit Market Services
revenue, were off by 11.6% to $202.6 million in the third quarter. The
decrease in revenue reflected substantial fall-off in structured finance
ratings, primarily in Europe.
"For S&P Investment Services, index services and Capital IQ products were
key to the 13.5% increase in third quarter revenue.
"Assets under management in exchange-traded funds based on S&P indices
rose by 6.7% to $223.5 billion at the end of the third quarter compared to the
same period last year. In the third quarter, 14 new exchange-traded funds were
introduced using S&P indices; 45 have been launched in the first nine months
of 2008. There are now 189 exchange-traded funds tracking S&P indices. S&P
receives payments based on assets under management in these funds.
"Volatile financial markets have produced substantial increases in the
volume for major exchange-traded derivatives based on S&P indices. Driven by a
surge in activity in the E-mini, and options on the E-mini and the S&P 500,
average daily volume grew by 27% in the third quarter to more than 3.7 million
contracts. S&P is paid a royalty each time a contract is traded.
"Capital IQ continues to expand its customer base and product offering.
The global client base has increased 5.2% since June and by 15.3% for the
first nine months. To accelerate Capital IQ's own estimates database project
and a launch into the aftermarket research marketplace, we recently acquired a
copy of Reuters Estimates and the Reuters Research-on-Demand databases.
Information & Media: "Revenue for this segment grew by 5.3% to $265.7
million in the third quarter compared to the same period last year. Including
a pre-tax restructuring charge of $13.9 million for a workforce reduction of
approximately 140 positions and a $12.4 million decline in incentive
compensation in the third quarter, operating profit increased by 22.6% to
$22.8 million. Foreign exchange rates did not have a material impact on
segment revenue or operating profit growth.
"For the Business-to-Business Group, revenue increased 5.4% to $240.7
million in the third quarter compared to the same period last year. The
Business-to-Business Group includes the following brands: Aviation Week,
BusinessWeek, J.D. Power and Associates, McGraw-Hill Construction and Platts.
The revenue growth was driven by Platts, a leading provider of information on
petroleum, natural gas and petrochemicals. Aviation Week benefited from the
timing of the biennial Farnborough Air Show, which was held in the United
Kingdom in the third quarter.
"Advertising pages in BusinessWeek's global edition were down 13.9% in the
third quarter, according to the Publishers' Information Bureau.
"Revenue for the Broadcasting Group increased 4.4% to $25.0 million in the
third quarter compared to the same period last year as increased political
advertising offset softness in national and local business due to a weakening
economy.
Corporate Expense: "Reflecting a $29.1 million reduction in incentive
compensation, corporate expense in the third quarter declined by 74.3% to $9.7
million.
The Outlook: "In the face of challenging conditions in financial markets
and the economy, we are now forecasting earnings per share of $2.63 to $2.65
in 2008. The projection for this year excludes the restructuring charges, but
includes the associated benefits. The forecast assumes earnings per share of
$0.40 to $0.42 in the fourth quarter.
"We also have reassessed the outlook for our three operating segments in
2008:
-- McGraw-Hill Education: We now expect revenue to decrease 1% to 2% with an
operating margin decline of 300 to 350 basis points,
-- Financial Services: We anticipate revenue will be off 11% to 12%, and we
now expect a 425-475 basis point decline in the operating margin, and
-- Information & Media: We now project revenue growth of 4% to 6% and still
anticipate operating margin improvement."
Conference Call/Webcast Details: The Corporation's senior management will
review the third quarter 2008 earnings results on a conference call scheduled
for this morning, October 28, at 8:30 AM Eastern Time. This call is open to
all interested parties. Discussions may include forward-looking information.
Additional information presented on the conference call may be made available
on the Corporation's Investor Relations Website at
http://www.mcgraw-hill.com/investor_relations .
Beginning with this quarter's earnings call, the Webcast will integrate
the audio and synchronized presenters' slides in a single interface. The
Webcast will be available live and in replay at http://investor.mcgraw-
hill.com/phoenix.zhtml?c=96562&p=irol-EventDetails&EventId=1984006 . (Please
copy and paste URL into web browser.)
Telephone access is available for those who would like to listen only (no
slides) or to ask a question during the question-and-answer session. Domestic
participants may call (888) 323-5423; international participants may call +1
(415) 228-5016 (long distance charges will apply). The passcode is McGraw-
Hill and the conference leader is Harold McGraw III. A recorded telephone
replay will be available approximately two hours after the meeting concludes
and will remain available until November 27, 2008. Domestic participants may
call (888) 433-2210; international participants may call +1 (203) 369-3151
(long distance charges will apply). No passcode is required.
The forward-looking statements in this news release involve risks and
uncertainties and are subject to change based on various important factors,
including worldwide economic, financial, liquidity, political and regulatory
conditions; the health of debt (including U.S. residential mortgage-backed
securities and collateralized debt obligations) and equity markets, including
possible future interest rate changes; the health of the economy and in
advertising; the level of expenditures and state new adoptions and open
territory sales in the education market; the successful marketing of
competitive products; and the effect of competitive products and pricing.
About The McGraw-Hill Companies: Founded in 1888, The McGraw-Hill
Companies is a leading global information services provider meeting worldwide
needs in the financial services, education and business information markets
through leading brands such as Standard & Poor's, McGraw-Hill Education,
BusinessWeek and J.D. Power and Associates. The Corporation has more than 280
offices in 40 countries. Sales in 2007 were $6.8 billion. Additional
information is available at www.mcgraw-hill.com .
Homepage: http://www.mcgraw-hill.com
Investor Relations: http://www.mcgraw-hill.com/investor_relations
Get news direct from McGraw-Hill via RSS:
http://investor.spglobal.com/CustomPage/Index?keyGenPage=1073751617
Release issued: October 28, 2008
The McGraw-Hill Companies
Statements of Income
Periods ended September 30, 2008 and 2007
(dollars in thousands, except per share data)
(unaudited) Three Months
-----------------------------------
2008 2007 % Change
------------ ------------ --------
Revenue $2,048,541 $2,187,996 (6.4)%
Expenses, net 1,402,274 1,449,344 (3.2)%
Other income - - -
------------ ------------
Income from operations 646,267 738,652 (12.5)%
Interest expense, net 22,002 15,423 42.7 %
------------ ------------
Income from operations before
taxes on income 624,265 723,229 (13.7)%
Provision for taxes on income 234,099 271,211 (13.7)%
------------ ------------
Net income $390,166 $452,018 (13.7)%
============ ============
Earnings per common share:
Basic $1.25 $1.37 (8.8)%
============ ============
Diluted $1.23 $1.34 (8.2)%
============ ============
Dividend per common share $0.22 $0.205 7.3 %
============ ============
Average number of common shares
outstanding:
Basic 313,105 330,249
Diluted 317,203 337,733
(unaudited) Nine Months
-----------------------------------
2008 2007 % Change
------------ ------------ --------
Revenue $4,939,637 $5,202,593 (5.1)%
Expenses, net 3,785,738 3,793,640 (0.2)%
Other income - 17,305 N/M
------------ ------------
Income from operations 1,153,899 1,426,258 (19.1)%
Interest expense, net 60,186 28,726 109.5 %
------------ ------------
Income from operations before
taxes on income 1,093,713 1,397,532 (21.7)%
Provision for taxes on income 410,143 524,598 (21.8)%
------------ ------------
Net income $683,570 $872,934 (21.7)%
============ ============
Earnings per common share:
Basic $2.16 $2.57 (16.0)%
============ ============
Diluted $2.13 $2.50 (14.8)%
============ ============
Dividend per common share $0.66 $0.615 7.3 %
============ ============
Average number of common shares
outstanding:
Basic 316,969 340,295
Diluted 320,600 349,589
N/M - not meaningful
Exhibit 1
The McGraw-Hill Companies
Operating Results by Segment - As Reported
Periods ended September 30, 2008 and 2007
(dollars in thousands)
(unaudited) Revenue
--------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ ------------
Three Months
McGraw-Hill Education $1,131,352 $1,175,954 (3.8) %
Financial Services 651,458 759,614 (14.2) %
Information & Media 265,731 252,428 5.3 %
------------ ------------
Total revenue $2,048,541 $2,187,996 (6.4) %
============ ============
(unaudited) Segment Expenses
--------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ ------------
Three Months
McGraw-Hill Education (a) $779,873 $764,895 (2.0) %
Financial Services (a) 369,816 412,964 10.4 %
Information & Media (a) 242,884 233,799 (3.9) %
------------ ------------
Total segment expenses $1,392,573 $1,411,658 1.4 %
============ ============
(unaudited) Operating Profit
--------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ ------------
Three Months
McGraw-Hill Education (a) $351,479 $411,059 (14.5) %
Financial Services (a) 281,642 346,650 (18.8) %
Information & Media (a) 22,847 18,629 22.6 %
------------ ------------
Total operating segments 655,968 776,338 (15.5) %
General corporate expense (9,701) (37,686) 74.3 %
Interest expense, net (22,002) (15,423) (42.7) %
------------ ------------
Total operating profit * $624,265 $723,229 (13.7) %
============ ============
Exhibit 2 - P. 1 of 2
(unaudited) Revenue
--------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ ------------
Nine Months
McGraw-Hill Education $2,132,354 $2,154,958 (1.0) %
Financial Services 2,031,236 2,309,489 (12.0) %
Information & Media 776,047 738,146 5.1 %
------------ ------------
Total revenue $4,939,637 $5,202,593 (5.1) %
============ ============
(unaudited) Segment Expenses
--------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ ------------
Nine Months
McGraw-Hill Education (b) $1,801,606 $1,754,177 (2.7) %
Financial Services (b) (c) 1,190,364 1,213,459 1.9 %
Information & Media (b) 716,675 694,891 (3.1) %
------------ ------------
Total segment expenses $3,708,645 $3,662,527 (1.3) %
============ ============
(unaudited) Operating Profit
--------------------------------------
% Favorable
2008 2007 (Unfavorable)
----------- ------------ ------------
Nine Months
McGraw-Hill Education (b) $330,748 $400,781 (17.5) %
Financial Services (b) (c) 840,872 1,096,030 (23.3) %
Information & Media (b) 59,372 43,255 37.3 %
------------ ------------
Total operating segments 1,230,992 1,540,066 (20.1) %
General corporate expense (77,093) (113,808) 32.3 %
Interest expense, net (60,186) (28,726) (109.5) %
------------ ------------
Total operating profit * $1,093,713 $1,397,532 (21.7) %
============ ============
* Income from operations before taxes on income
(a) 2008 segment expenses and operating profit for the three months
include a pre-tax restructuring charge of $23.4 million as follows:
McGraw-Hill Education, $5.4 million; Financial Services,
$4.1 million; and Information & Media, $13.9 million.
(b) 2008 segment expenses and operating profit for the nine months
include a pre-tax restructuring charge of $47.1 million as follows:
McGraw-Hill Education, $13.9 million; Financial Services,
$19.3 million; and Information & Media, $13.9 million.
(c) 2007 segment expenses and operating profit for the nine months
include a $17.3 million pre-tax gain on the sale of the Company's
mutual fund data business in March 2007.
Exhibit 2 - P. 2 of 2
The McGraw-Hill Companies
Operating Results by Segment - As Adjusted
Periods ended September 30, 2008 and 2007
(dollars in thousands)
(unaudited) Revenue
---------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ -------------
Three Months
McGraw-Hill Education $1,131,352 $1,175,954 (3.8) %
Financial Services 651,458 759,614 (14.2) %
Information & Media 265,731 252,428 5.3 %
------------ ------------
Total revenue $2,048,541 $2,187,996 (6.4) %
============ ============
(unaudited) Segment Expenses
---------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ -------------
Three Months
McGraw-Hill Education (a) $774,483 $764,895 (1.3) %
Financial Services (a) 365,672 412,964 11.5 %
Information & Media (a) 228,979 233,799 2.1 %
------------ ------------
Total segment expenses $1,369,134 $1,411,658 3.0 %
============ ============
(unaudited) Operating Profit
---------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ -------------
Three Months
McGraw-Hill Education (a) $356,869 $411,059 (13.2) %
Financial Services (a) 285,786 346,650 (17.6) %
Information & Media (a) 36,752 18,629 97.3 %
------------ ------------
Total operating segments 679,407 776,338 (12.5) %
General corporate expense (9,701) (37,686) 74.3 %
Interest expense, net (22,002) (15,423) (42.7) %
------------ ------------
Total operating profit * $647,704 $723,229 (10.4) %
============ ============
Exhibit 3 - P. 1 of 2
(unaudited) Revenue
--------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ ------------
Nine Months
McGraw-Hill Education $2,132,354 $2,154,958 (1.0) %
Financial Services 2,031,236 2,309,489 (12.0) %
Information & Media 776,047 738,146 5.1 %
------------ ------------
Total revenue $4,939,637 $5,202,593 (5.1) %
============ ============
(unaudited) Segment Expenses
--------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ ------------
Nine Months
McGraw-Hill Education (b) $1,787,708 $1,754,177 (1.9) %
Financial Services (b) (c) 1,171,073 1,230,764 4.8 %
Information & Media (b) 702,770 694,891 (1.1) %
------------ ------------
Total segment expenses $3,661,551 $3,679,832 0.5 %
============ ============
(unaudited) Operating Profit
--------------------------------------
% Favorable
2008 2007 (Unfavorable)
------------ ------------ ------------
Nine Months
McGraw-Hill Education (b) $344,646 $400,781 (14.0) %
Financial Services (b) (c) 860,163 1,078,725 (20.3) %
Information & Media (b) 73,277 43,255 69.4 %
------------ ------------
Total operating segments 1,278,086 1,522,761 (16.1) %
General corporate expense (77,093) (113,808) 32.3 %
Interest expense, net (60,186) (28,726) (109.5) %
------------ ------------
Total operating profit * $1,140,807 $1,380,227 (17.3) %
============ ============
* Income from operations before taxes on income
(a) 2008 segment expenses and operating profit for the three months
exclude a pre-tax restructuring charge of $23.4 million as follows:
McGraw-Hill Education, $5.4 million; Financial Services,
$4.1 million; and Information & Media, $13.9 million.
(b) 2008 segment expenses and operating profit for the nine months
exclude a pre-tax restructuring charge of $47.1 million as follows:
McGraw-Hill Education, $13.9 million; Financial Services,
$19.3 million; and Information & Media, $13.9 million.
(c) 2007 segment expenses and operating profit for the nine months
exclude a $17.3 million pre-tax gain on the sale of the Company's
mutual fund data business in March 2007.
Non-GAAP Measures
In addition to including financial measures under accounting principles
generally accepted in the United States of America (U.S. GAAP), The
McGraw-Hill Companies disclosed non-GAAP measures for the three and nine
months ended September 30, 2008 and 2007. These non-GAAP measures exclude
the impact of restructuring charges and a gain on the sale of the
Company's mutual fund data business. The non-GAAP measures are provided
because management believes they provide useful supplemental information
for meaningful comparisons of the Company's results. This exhibit should
be read in conjunction with Exhibit 2.
Exhibit 3 - P. 2 of 2
The McGraw-Hill Companies
Financial Services Segment
Credit Market Services - Transaction vs. Non-Transaction Revenue
Periods ended September 30, 2008 and 2007
(dollars in thousands)
(unaudited)
2008 2007 % Change
----------- ----------- --------
Three Months
Transaction Revenue (a) $104,180 $246,516 (57.7)%
Non-Transaction Revenue (b) 319,067 311,979 2.3%
----------- -----------
Total Credit Market Services
Revenue $423,247 $558,495 (24.2)%
=========== ===========
(unaudited)
2008 2007 % Change
----------- ----------- --------
Nine Months
Transaction Revenue (a) $389,239 $849,364 (54.2)%
Non-Transaction Revenue (b) 969,218 889,859 8.9%
----------- -----------
Total Credit Market Services
Revenue $1,358,457 $1,739,223 (21.9)%
=========== ===========
(a) Revenue related to rating new issuance of corporate, public finance,
and structured finance instruments.
(b) Revenue from annual fees for frequent issuer programs, surveillance,
subscriptions, and certain non-traditional products.
The McGraw-Hill Companies
Financial Services Segment
Credit Market Services - Domestic vs. International Revenue
Periods ended September 30, 2008 and 2007
(dollars in thousands)
(unaudited)
2008 2007 % Change
----------- ----------- --------
Three Months
Domestic Revenue $220,668 $329,337 (33.0)%
International Revenue 202,579 229,158 (11.6)%
----------- -----------
Total Credit Market Services
Revenue $423,247 $558,495 (24.2)%
=========== ===========
(unaudited)
2008 2007 % Change
----------- ----------- --------
Nine Months
Domestic Revenue $715,812 $1,073,145 (33.3)%
International Revenue 642,645 666,078 (3.5)%
----------- -----------
Total Credit Market Services
Revenue $1,358,457 $1,739,223 (21.9)%
=========== ===========
Exhibit 4
The McGraw-Hill Companies
Third Quarter 2008 Restructuring Summary
(dollars in thousands, except for positions)
(unaudited)
Pre-Tax
Approximate # of Restructuring
Positions Charge
---------------- -------------
McGraw-Hill Education 90 $5,390
Financial Services 40 4,144
Information & Media 140 13,905
---------------- -------------
Total Company 270 $23,439
================ =============
The McGraw-Hill Companies
Year-to-Date 2008 Restructuring Summary
(dollars in thousands, except for positions)
(unaudited)
Pre-Tax
Approximate # of Restructuring
Positions Charge
---------------- -------------
McGraw-Hill Education 240 $13,898
Financial Services 290 19,291
Information & Media 140 13,905
---------------- -------------
Total Company 670 $47,094
================ =============
Exhibit 5
SOURCE The McGraw-Hill Companies
Contact: Investor Relations: Donald S. Rubin Senior Vice President, Investor Relations (212) 512-4321 (office) donald_rubin@mcgraw-hill.com News Media: Steven H. Weiss Vice President, Corporate Communications (212) 512-2247 (office) (917) 699-9389 (mobile) weissh@mcgraw-hill.com Frank Briamonte Senior Director, Corporate Communications (212) 512-4145 (office) (201) 725-6133 (mobile) frank_briamonte@mcgraw-hill.com