Moody’s reported Q3 revenues of $451.8 million an increase of 4% from $433.4 million for the third quarter of 2008. Operating income for the quarter was $172.5 million, a 9% decline from $189.8 million for the same period last year. Diluted earnings per share of $0.42 for the third quarter of 2009 included a charge of $0.01 related to previously announced restructuring activities.

Moody’s revenues for the first nine months of 2009 totaled $1,311.4 million, a decrease of 3% from $1,351.7 million for the same period of 2008. Expenses for the first nine months of 2009 were $802.8 million, an increase of 10% from a year ago.

Year-to-date operating income of $508.6 million was down 18% from $622.8 million for the same period of 2008. Excluding the negative impact of foreign currency translation, revenue for the first nine months of 2009 was about flat with the prior-year period and operating income decreased 17 percent.  Revenue at Moody’s Investors Service totaled $885.8 million for the first nine months of 2009, a decrease of 7% from the prior-year period.  Moody’s Analytics revenue rose to $425.6 million for the first nine months of 2009, up 6% from 2008.

Moody’s is revising its outlook for the full-year 2009 due to continuing strength in corporate debt issuance. This outlook assumes foreign currency translation at end of third quarter exchange rates. It now expects revenue for the full-year 2009 to be about flat versus full-year 2008.

Revenue expectations for certain areas have changed based on conditions specific to those businesses and geographies. Full-year 2009 operating margin is now projected in the high-thirties percent range reflecting the real of regulations and tightened operating procedures and corporate governance.  Operating margins used to be in the 50% range.    Source:  Moody’s

BIIA Newsletter November – December 2009 Issue