Publisher and financial services company McGraw-Hill Cos., New York, struggled in the first quarter 2006, showing a 5.7% loss in profit from the same period last year. Net income for the first quarter was $74.2 million compared with $78.7 million in first-quarter 2005.
The company attributes the profit loss to a one-time charge of 4 cents per share for eliminating its restoration stock-option program and seasonal slowing of financial services sales. "Financial services is normally the key contributor to our first quarter due to the seasonality affecting education and advertising, and that is the case again this year," said Harold McGraw III, chairman, president and CEO of McGraw-Hill Cos.
The company expects earnings per share of $2.36 to $2.41 for the remainder of 2006 and a "return to double-digit earnings growth in 2007."
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