McGraw-Hill said its profits were affected negatively by a net pre-tax restructuring charge of $15.2 million and a pre-tax loss of $13.8 million in the sales of Vista Research in May. The decline in revenue was partially blamed on weakness in advertising. "Cost containment will be a priority all year," Harold McGraw III, chairman, president-CEO of the company, said in a statement.
McGraw-Hill's business-to-business group, which includes the BusinessWeek, McGraw-Hill Construction and Aviation Week brands, saw a 10.2% decline in revenue to $215.8 million for the quarter. "A solid performance by Platts in global energy markets in the second quarter was offset by weakness in the automotive sector at J.D. Power and a decline in advertising in aviation, construction and BusinessWeek. Advertising pages in BusinessWeek's global edition declined by 34.3% in the second quarter," McGraw said in a statement.
McGraw-Hill anticipates that continued weakness in the advertising and school education marketers will lead to a 5.5% to 6.5% decline in revenue for all of 2009. The company had previously anticipated a 4.0% to 5.0% decline.