School Sales Propel M-H

by Staff, PW Daily -- Publishers Weekly, 7/26/2005

Fueled by strong growth in its school group, revenue at McGraw-Hill Education rose 14.8% in the second quarter, to $628.6 million. Operating profit jumped 25.5%, to $71.6 million.

Sales in the school group increased 17.0%, to $414.4 million, as the company benefitted from more adoption money despite a smaller than anticipate increase in funding in Texas. Basal programs in social studies and health were among MHE's best performers in the quarter.

In the higher education, professional, international group sales increased 10.9% in the quarter, to $214.2 million.

For the first half of the year, sales at MHE increased 12.2%, to $935.9 million, and operating income rose 25.5%, to $71.6 million.

In a personnel move, Hendrik Kranenburg has been appointed group president of the higher education, professional and international unit, replacing Brian Heer who has left the company. Kranenburg has been a senior exec with M-H's Standard & Poor's division and M-H chairman Terry McGraw says Kranenburg's international experience will help the company expand the group's global operations. The heads of M-H's two international divisions will report to Kranenburg as will Ed Stanford, head of the higher education group, and Keith Fox, head of professional.