S&P Global Inc. Quarterly Report for Q1 Ended Mar 31, 2012

Summary

S&P Global Inc. (SPGI) reported first-quarter 2012 results showing a modest increase in revenue and operating income compared to the prior year. Total revenue rose by 6% to $1.33 billion, while operating income grew by 2% to $221 million. Diluted Earnings Per Share (EPS) increased by 12% to $0.43, reflecting effective cost management and a reduction in outstanding shares due to share repurchases. The company is actively executing a "Growth and Value Plan" aimed at separating into two distinct public companies: McGraw-Hill Financial and McGraw-Hill Education. This strategic move is expected to be completed by the end of 2012. First-quarter results were impacted by $33 million in costs associated with this separation plan, primarily within selling and general expenses. Despite these costs, key growth drivers included S&P Capital IQ / S&P Indices and Commodities & Commercial (C&C) segments, which saw revenue increases of 9% and 13%, respectively. S&P Ratings experienced a slight revenue increase but a modest operating income decline due to higher personnel and legal expenses.

Key Highlights

• 1Total revenue increased by 6% to $1.33 billion for the three months ended March 31, 2012.
• 2Operating income grew by 2% to $221 million.
• 3Diluted EPS saw a significant increase of 12% to $0.43.
• 4The company is progressing with its plan to separate into two distinct public companies, McGraw-Hill Financial and McGraw-Hill Education, expected by year-end 2012.
• 5S&P Capital IQ / S&P Indices segment revenue increased by 9%, driven by subscription growth and acquisitions.
• 6Commodities & Commercial (C&C) segment revenue increased by 13%, boosted by strong performance in Platts and JD Power.
• 7Costs related to the separation plan totaled $33 million in the quarter, impacting selling and general expenses.

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