Blackwell Boost Wiley, Though Professional/Trade Sluggish
by Jim Milliot -- Publishers Weekly, 6/19/2008 7:08:00 AM
Total revenue at John Wiley & Sons rose 36% in the fiscal year ended April 30, to $1.67 billion, and net income increased 37%, to $128.9 million. The gains were led by Blackwell which Wiley acquired in February 2007 and which added $485 million to sales and $63 million to operating income. Wiley CEO Will Pesce said Blackwell’s performance “exceeded our expectations throughout the year.” Wiley’s international divisions, aided by favorable changes in exchange rates, also posted good years with sales in the European segment up 10% and sales in the Asia/Australia/Canada group ahead 17%.
The overall strong performance included a relatively weak fourth quarter, particularly in the domestic segment where sales were off 3%. The professional/trade segment had a 10% decline in fourth quarter domestic sales, although revenue for the year was up 1%, to $395.2 million. Pesce said results in the fourth quarter were hurt by sluggish market conditions and “tight inventory management” by some key accounts in February and March. Sales improved in April, he added. Earnings in the unit were helped by the recovery of $2 million in bad debt associated with the AMS bankruptcy. The book highlights in the year include a few firsts for the Dummies brand--the introduction of a do-it-yourself line (Web Sites Do-It-Yourself for Dummies) and the first title aimed at readers over 50, Computers for Seniors for Dummies. On the digital front, Wiley launched a Web site for Webster’s New World plus JKLasser.com.
In its other segments, STM sales, excluding Blackwell, rose 2%, to $235 million due to moderate gains in journal subscriptions. Sales in the higher education group finished the year with a 1% increase, to $$164.7 million, led by a 15% increase in the fourth quarter. Sales gains in science and business/accounting offset weak backlist sales in math, engineering and social sciences. Sales of WileyPlus rose 35% in the year and the company said online sales made directly to students grew “significantly” in the year.
Wiley said it expects sales in fiscal 2009 to increase in mid-single digits and earnings per share to rise about 20%.
