Strong 4th Quarter Fuels Impressive Year at Harper
By Steven Zeitchik -- Publishers Weekly, 8/19/2002
HarperCollins finished off its year with a strong run, particularly in the U.S. adult market. The company's worldwide book publishing operation saw operating income jump from $9 million in the fourth quarter of last year to $13 million this year. For the year, operating income rose from $111 million in fiscal 2001 to $118 million in 2002. Sales increased about 9%, to $234 million, in the fourth quarter compared to last year, and, for the year, were up nearly 5%, to $1.08 billion.
In the U.S., the company reported an increase of more than 300% in operating profit on the general books, or adult, side for the fourth quarter, and a jump of nearly 75% in the children's division. Along with film, book publishing was the only other News Corp. division to post an increase in profit for the quarter.
Harper head Jane Friedman described fiscal 2002 as a tale of two years—the first half was strong in the U.K., Canada and Australia, and slower in the U.S.; the second half saw a steady global publishing operation and strong U.S results. "When some of my colleagues were crying doom and gloom in the U.S. [about six months ago], we did not feel it," she said, largely because Harper has become a "truly global company." Then came the last six months, she said "which were just fabulous in America."
In fiscal 2002, 106 Harper titles made the NYT bestseller list in the U.S. New books from Barbara Kingsolver and Lemony Snicket, as well as Lord of the Rings tie-ins and backlist health books from Bill Phillips and Dr. Atkins, were among those leading the charge. Also for the year, Friedman said she was "more than satisf[ied]" with the performance of Zondervan, which just about reached budget in sales revenue and was holding its own in a market crowded with books from the Left Behind series and The Prayer of Jabez.
As for 2003, Friedman said, she was looking to the new mass market sales force as well as specialty imprints Amistad and Rayo for explosive growth. She also said she remains open to an acquisition, though she didn't think that right now there was anything for sale that would fit Harper's needs.
In other Harper news, the company announced at sales conference that Michael Crichton's new book, Prey, will land on November 25. Friedman describes it as "a combination of The Andromeda Strain and Jurassic Park."
