What was the primary driver of revenue growth in the third quarter of 2003?

The primary driver of revenue growth in the third quarter of 2003 was the Financial Services segment, which saw a 15.1% increase, largely due to the performance of corporate finance and structured finance ratings and index-related products.

How did the company manage its expenses in the reported period?

The company demonstrated effective cost containment. Total expenses increased by only 3.8% for the third quarter and 2.0% for the first nine months of 2003, which was a lower rate of increase compared to revenue growth, leading to improved operating margins.

What is the status of the company's debt?

The company has significantly reduced its long-term debt. Total long-term debt decreased from $458.9 million at December 31, 2002, to $168.6 million at September 30, 2003. The company also has access to revolving credit facilities and commercial paper, with no borrowings under these facilities as of September 30, 2003.

Were there any significant divestitures or acquisitions during the period?

Yes, the company divested S&P ComStock in February 2003, which was part of the Financial Services segment. This divestiture resulted in a significant after-tax gain. In September 2002, MMS International was divested.

SPGI 10-Q Quarterly Report Q3 FY2003 — Revenue, Net Income, EPS

Summary

S&P Global Inc. (SPGI), formerly The McGraw-Hill Companies, Inc., reported solid financial results for the third quarter and the first nine months of 2003. Total revenue increased by 4.0% to $1.6 billion for the quarter and 2.6% to $3.7 billion for the nine-month period, driven primarily by robust growth in the Financial Services segment, particularly Standard & Poor's ratings and index services. The company demonstrated effective cost management, with total expenses increasing by only 3.8% for the quarter and 2.0% for the nine-month period. This, combined with revenue growth, led to a notable increase in income from continuing operations, up 5.5% to $290.3 million for the quarter and 7.3% to $470.5 million for the nine months. Diluted earnings per share also showed improvement, rising to $1.51 for the quarter and $2.75 for the nine months. The company also successfully reduced its long-term debt significantly. Strategic divestitures, such as the sale of S&P ComStock in February 2003, contributed to the financial performance, although they impacted segment revenue comparisons. The company maintains a strong financial position with healthy operating cash flow, supporting its ongoing dividend payments and share repurchase programs.

Key Highlights

1Total revenue for Q3 2003 increased by 4.0% to $1.62 billion, and for the nine months ended September 30, 2003, it increased by 2.6% to $3.66 billion.
2Income from continuing operations for Q3 2003 rose to $290.3 million, a 5.5% increase year-over-year, with diluted EPS at $1.51.
3For the nine months ended September 30, 2003, income from continuing operations was $470.5 million, up 7.3%, with diluted EPS at $2.75.
4The Financial Services segment, including Standard & Poor's, was a key growth driver, with revenue up 15.1% in Q3 and 18.1% for the nine months.
5The company successfully reduced its long-term debt, with total long-term debt decreasing from $458.9 million at year-end 2002 to $168.6 million at September 30, 2003.
6Operating cash flow for the nine months was strong at $819.9 million, an increase from $726.6 million in the prior year.
7The company disposed of S&P ComStock in February 2003, recognizing a significant after-tax gain.

S&P Global Inc. Quarterly Report for Q3 Ended Sep 30, 2003

Summary

Key Highlights

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