“Double-digit EPS growth and the maintenance of a rock-solid financial position were the hallmarks of our performance in 2010,” said Harold McGraw III, Chairman, President and Chief Executive Officer of The McGraw-Hill Companies. “In the fourth quarter, the best performance of the year by Standard & Poor’s Investment Services set the stage for the launch of our new segment, McGraw-Hill Financial. Double-digit growth at Standard & Poor’s Credit Market Services and a fine performance in global energy markets by Platts also helped offset fourth quarter softness in education markets.” For full year 2010, diluted earnings per share were $2.65 compared to $2.33 for 2009. On an adjusted basis, full year 2010 earnings were $2.69 compared to $2.37 in 2009. Full year 2010 results included dilution of $0.02 for acquisitions. Net income increased 13.4% to $828.1 million. On an adjusted basis, net income for 2010 increased 13.2% to $840.0 million compared to 2009. Revenue for 2010 grew by 3.6% to $6.2 billion.
Financial Services Segment: Revenue for the segment increased by 13.0% to $778.5 million in the fourth quarter compared to the same period last year. Operating profit grew by 11.8% to $279.4 million compared to $250.0 million in the fourth quarter last year. Foreign exchange rates reduced revenue by $4.8 million, but did not have a material impact on operating profit.
For the full year 2010, revenue for Financial Services increased by 8.3% to $2.8 billion compared to $2.6 billion last year. Operating profit grew by 6.2% to $1.1 billion in 2010, compared to $1.0 billion in 2009. Adjusted operating profit grew by 4.1% to $1.1 billion in 2010 compared to $1.0 billion in 2009. Foreign exchange rates had an immaterial effect on revenue and operating profit in 2010.
Standard & Poor’s Credit Market Services’ revenue increased by 11.4% to $527.1 million in the fourth quarter and by 9.2% to $1.9 billion for the full year 2010 compared to 2009. Standard & Poor’s Investment Services’ revenue, including $12.7 million from the acquisition of TheMarkets.com, grew by 16.5% to $251.4 million in the fourth quarter and by 6.5% to $918.1 million for the full year 2010 compared to 2009. Source: McGraw-Hill Companies