8-KOther EventsExhibits & Filings

S&P Global Inc. 8-K Report, Corporate Update (Sep 18, 2007)

Filed September 18, 2007For Securities:SPGI

Summary

This 8-K filing from The McGraw-Hill Companies, Inc. (now S&P Global Inc.) announced on September 18, 2007, provides updated financial guidance. The company reaffirms its expectation to achieve double-digit earnings growth for the full year 2007. This guidance is presented on a non-GAAP basis, excluding specific one-time charges and gains from prior periods to offer a clearer view of ongoing operational performance. Investors should note that the company explicitly details the items excluded from their non-GAAP earnings growth forecast. These include a charge related to the elimination of a stock option program in 2006, a restructuring charge from 2006, and a gain from the sale of a mutual fund data business in early 2007. The company asserts that excluding these items provides more useful information to investors due to their unusual nature, and that GAAP-based earnings growth would appear even stronger when these items are included.

Key Highlights

  • 1The McGraw-Hill Companies reaffirms expectation of double-digit earnings growth for 2007.
  • 2Guidance provided at the Goldman Sachs’ Communacopia XVI 2007 Conference.
  • 3Non-GAAP earnings growth forecast excludes a $0.04 charge for stock option program elimination (2006).
  • 4Non-GAAP earnings growth forecast excludes a $0.06 restructuring charge (2006).
  • 5Non-GAAP earnings growth forecast excludes a $0.03 gain from the sale of a mutual fund data business (Q1 2007).
  • 6Management believes non-GAAP measures offer more useful investor insights due to the unusual nature of excluded items.
  • 7GAAP-based earnings growth would be stronger if excluded items were included.

Frequently Asked Questions

The company is reaffirming its expectation to achieve double-digit earnings growth for the full year 2007, as communicated at a conference.

The non-GAAP guidance excludes a $0.04 charge for the elimination of a stock option program (2006), a $0.06 restructuring charge (2006), and a $0.03 gain from the sale of a mutual fund data business (Q1 2007).

The company's management believes that excluding these specific, unusual items provides investors with a more useful and clearer picture of the ongoing operational performance and underlying earnings trends.

Yes, the filing states that on a GAAP (Generally Accepted Accounting Principles) basis, which includes all of the excluded items, the 2007 earnings growth would be even stronger.