What was the primary driver of revenue growth in the second quarter?

The primary driver of revenue growth in the second quarter was the strong performance of the Financial Services segment, which saw a 13.9% increase in revenue.

How did the adoption of SFAS No. 142 impact the company's financial results?

The adoption of SFAS No. 142, which eliminated the amortization of goodwill, had a positive impact on net income. For the second quarter of 2002, the impact was $14.5 million pre-tax, or approximately 4 cents per diluted share. For the first half of 2002, it was $28.5 million pre-tax, or approximately 9 cents per diluted share.

Are there any significant charges or one-time items impacting the current period's results?

The current period's results are largely free of major charges. However, the prior year's second quarter results were impacted by a gain on the sale of DRI ($26.3 million after-tax) and charges related to asset write-downs, the shutdown of Blue List, and contributions to mPower.com ($21.9 million after-tax).

What is the outlook for the McGraw-Hill Education segment?

The McGraw-Hill Education segment experienced a revenue decrease of 1.8% for the first six months, posting an operating loss of $7.8 million compared to a profit in the prior year. This was attributed to seasonal business factors, a global slowdown, and softness in certain markets. The anticipated growth rate for elementary-high school markets in 2002 is also expected to be lower than initially estimated.

SPGI 10-Q Quarterly Report Q2 FY2002 — Revenue, Net Income, EPS

Summary

S&P Global Inc. (SPGI), formerly The McGraw-Hill Companies, Inc., reported solid financial results for the period ending June 30, 2002. Total operating revenue for the second quarter increased by 3.6% to $1.2 billion, driven by growth in the Financial Services segment. Net income saw a significant increase of 13.7% to $136.5 million, with diluted earnings per share rising to $0.70 from $0.61 in the prior year. The company's strategic focus appears to be yielding positive outcomes, with revenue growth outpacing expense increases due to cost containment measures and the positive impact of recent acquisitions. The adoption of SFAS No. 142, which eliminated goodwill amortization, contributed to improved net income. While certain segments experienced revenue declines, notably in Information and Media Services, the overall performance demonstrates resilience and growth, particularly within the Financial Services division.

Key Highlights

1Operating revenue for the second quarter increased by 3.6% year-over-year to $1.2 billion.
2Net income grew by 13.7% to $136.5 million for the quarter.
3Diluted earnings per share improved to $0.70, up from $0.61 in the prior year's second quarter.
4The Financial Services segment showed strong performance with a 13.9% revenue increase and a 40.3% operating profit increase.
5Effective January 1, 2002, the company adopted SFAS No. 142, ceasing goodwill amortization, which positively impacted net income.
6Despite overall growth, the Information and Media Services segment saw a revenue decrease of 9.1% due to a soft advertising market.
7The company continues to manage expenses effectively, with total expenses increasing by only 0.6% in the second quarter.

S&P Global Inc. Quarterly Report for Q2 Ended Jun 30, 2002

Summary

Key Highlights

Frequently Asked Questions