McGraw-Hill Companies Restructures Some Operations for Growth
Press release from the issuing company
NEW YORK--Dec. 12, 2001--The McGraw-Hill Companies reports it will restructure certain business operations to enhance its growth prospects in 2002 and beyond.
Said Harold McGraw III, Chairman and CEO, "The prudent restructuring actions we are announcing today, combined with favorable long-term trends in our three major markets, education, financial services and information and media services, position the Corporation for solid performance in 2002 and beyond. We are sharpening our focus on our core properties and major capabilities as we enter 2002.''
The company is forecasting double-digit earnings growth in 2002 based on its leading positions in the major markets it serves. In the face of a recession in the U.S. and before the restructuring charge and one-time items, the Corporation still expects revenue and profit growth in 2001.
Specifically, the restructuring includes the reduction of approximately 925 employees. The Education segment will reduce its staffing by approximately 575 employees, mostly from within its International unit and business training courseware operations. Some additional reductions will occur in new media and other areas where opportunities exist to consolidate operations and better leverage resources.
In the Financial Services segment, the bulk of the restructuring charge comes from write downs of assets related to Standard & Poor's decision to dispose of certain non-strategic properties in the investment services area. There will also be approximately 50 employee reductions across the segment.
In the Information and Media Services segment, most of the restructuring charge results from the construction unit's permanentwrite downs of certain e-commerce investments and approximately 300 staff reductions across the segment, including previously announced positions at BusinessWeek, the Broadcasting Group and the McGraw-Hill Construction Information Group.
Finally, the Corporation will write down $19 million of its venture fund investments in certain emerging technology companies that it will no longer support.
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