June 2008 -- The McGraw-Hill Cos. reported that net income for 2007 increased 14.9% to $1 billion compared to
2006. Revenue in 2007 grew by 8.3% to $6.8 billion versus 2006, despite net income for the
fourth quarter decreasing $64.2 million for the same quarter in 2006 and revenue declining 1.5%
to $1.6 billion.
"We promised and produced a double-digit gain in earnings per share and margin improvement in
financial services and McGraw-Hill Education in 2007 despite challenging conditions," said
Harold McGraw III, chairman, president and CEO of McGraw-Hill, when earnings were released. "In
the fourth quarter our diversification strategy at Financial Services helped buffer us against
the steep downturn in capital markets."
A solid fourth quarter finish in the U.S. college and university market enabled McGraw-Hill
Education to turn in a better than expected performance. To fortify its growth prospects, the
company restructured business operations in the fourth quarter.
"We are facing a challenging economic environment in 2008. Nevertheless, we expect revenue
growth," said McGraw. "We got off to a very fast start in 2007, so comparisons in the first half
of [this year] will be very challenging. We expect a better performance in the second half and
to finish 2008 on an upswing."
