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The McGrawHill Companies Inc. Reports Operating Results (10-K)

February 07, 2012 | About:

The McGrawHill Companies Inc. (MHP) filed Annual Report for the period ended 2011-12-31.

Mcgrawhill Cos. has a market cap of $13.48 billion; its shares were traded at around $45.95 with a P/E ratio of 15.8 and P/S ratio of 2.2. The dividend yield of Mcgrawhill Cos. stocks is 2.2%. Mcgrawhill Cos. had an annual average earning growth of 8.6% over the past 10 years. GuruFocus rated Mcgrawhill Cos. the business predictability rank of 3.5-star.

Highlight of Business Operations:

S&P Capital IQ / S&P Indices revenue and operating income increased 14% and 28%, respectively. Increases were primarily driven by Integrated Desktop Solutions due to growth at Capital IQ, revenue from TheMarkets.com acquired in September 2010 and our subscription base for the Global Credit Portal, which includes RatingsDirect; S&P Indices due to growth in our exchange-traded fund products; and increases at Enterprise Solutions driven by growth at Global Data Solutions, which includes RatingsXpress. Also impacting operating income were higher expenses from personnel costs and additional costs to further develop infrastructure.

S&P Ratings revenue and operating income increased 10% and 7%, respectively. Increases were largely due to growth in transaction revenues driven by high-yield corporate bond issuance. These increases were partially offset by declines in structured finance.

S&P Capital IQ / S&P Indices revenue and operating income increased 6% and 4%, respectively. Increases were largely due to growth in S&P Indices, RatingsXpress and RatingsDirect as compared to the prior year. Additional growth occurred at Capital IQ. These increases were partially offset by declines in investment research products.

Demand for our automotive studies is driven by the performance of the automotive industry. In 2011, global and U.S. light vehicle sales increased 4% and 10%, respectively, compared to 2010, largely as a result of continued strength in emerging markets, recovery in Western Europe and U.S. demand. For 2012, JDPA projects growth for global and U.S. light vehicle sales of approximately 8% and 9% year on year. Growth in 2012 is expected to be driven primarily by the continued recovery in the mature automotive markets and growth in the emerging automotive markets leading to increased demand for JDPA automotive consulting, retail and quality tracking and other proprietary services. Likewise, improved economic conditions are expected to facilitate growth in JDPAs traditional non-automotive businesses globally.

According to statistics compiled by AAP, total net sales of elementary and secondary instructional materials decreased by 9.4% through December 2011. Net sales for the industry in the adoption states decreased by 12.7% compared to 2010, and net sales in the open territory states decreased by 5.7% compared to 2010.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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