McGraw-Hill Companies reported a revenue decline of 12% in the second quarter of 2009.  Operating income declined by 8.8%.  S&P revenues for the second quarter declined by 8.4% and operating margins remained in the 41% range (39% for 6 months).  Revenues for S&P Credit Market Services (ratings) declined by 9.9%.  Revenues for Investment Services (Analytics) declined by 4.9%.  For the first six months revenues are down 9.6%.  The sector most heavily impacted was education with 13.3%.  Information & media declined by 9.5% and financial services (S&P) declined by 6.9%.

Outlook:  In view of weakening market conditions in advertising, school education McGraw-Hill Companies now expect revenues to decline 5 – 6.5%.  It also reduced its guidance for earnings per diluted share.  The previous range was US$ 2.20 to 2.30 range, which has been revised to US$ 2.20 to 2.25.

BIIA Newsletter September 2009 Issue