Core revenue for the second quarter of 2009 was $405.3 million, up 1 percent from the prior year similar period before the effect of foreign exchange (FX); down 2 percent after the effect of FX.  Diluted earnings per share before non-core gains and charges for the quarter ended June 30, 2009, were $1.21, up 5 percent from $1.15 in the prior year similar period, however on a GAAP basis, diluted earnings per share were $1.43, down from $1.51 in the prior year Q2 period.   North American revenues were down 3% from prior year quarter (before and after FX), while International revenues were up 20% before and 3% up after the FX.  D&B reduced its guidance for the rest of the year:  Revenue growth from up 1% to down 1%, operating income from up 1% to down 3%; free cash flow from US$315 million to US$285 million.

Wall Street did not like the news.  D&B stock fell on Friday July 31st from a US$ 82 range to $72.27, down $10.51, or nearly 13%, on volume of 1.85 million shares. The negative reaction is somewhat surprising because in comparing D&B’s results with other credit information companies and rating agencies in terms of revenue growth, it is doing relatively well in the light of difficult trading conditions.  For instance Equifax’s US consumer information business was down 8% and its North American commercial solutions revenue was down 11% in the second quarter.  The consistent message from other major information companies is that they did not expect a turn-around soon.  In essence D&B has weathered the credit crunch much better than others.  Source: D&B Earnings Release

BIIA Newsletter September 2009 Issue