Harcourt Hits Expectations
Staff -- Publishers Weekly, 6/18/2001
Harcourt General reported that total revenues for the second quarter ended April 30, 2001, rose 10.8% to $454.6 million, while its net loss fell to $37.4 million from $40.2 million. The loss includes an increase in corporate expenses from $5.3 million to $10.1 million in connection with the pending sale of the company to Reed Elsevier. Reed is still waiting for approval from the U.K. government before it can complete the deal.
In the quarter, revenues in Harcourt's educational group increased 20.6%, to $90.2 million, with gains reported across most disciplines in the elhi market. Revenues in the college segment dipped 0.8% to $50.7 million, with results flat in the segment's traditional college publishing program as well as in its distance education and professional educational businesses. The STM group had a 1.4% revenue gain to $165.8 million, while earnings jumped 47% to $28.1 million, led by sharp gains at Academic Press plus strong earnings from Harcourt Health Sciences and the group's international operations.
For the first six months of 2001, sales rose 5.9%, to $861.7 million, while the net loss rose to $86.0 million from $73.6 million. Company co-CEO Brian Knez said the second quarter results were in line with expectations and that the company is "on track to attain our financial objectives for the full year."
