8-KEarnings & ResultsRegulation FDExhibits & Filings

S&P Global Inc. 8-K Report, Financial Results (Jan 24, 2008)

Filed January 24, 2008For Securities:SPGI

Summary

The McGraw-Hill Companies, Inc. (which would later become S&P Global Inc.) filed this 8-K on January 24, 2008, to report its fourth quarter and full fiscal year 2007 financial results. The company announced a significant increase in full-year diluted earnings per share (EPS) for 2007, rising 22.5% to $2.94 from $2.40 in 2006. This growth was impacted by a one-time gain from a business divestiture and a restructuring charge. The report also provided adjusted financial metrics, excluding certain charges and gains, to offer a clearer view of operational performance and facilitate year-over-year comparisons for investors. For the fourth quarter of 2007, diluted EPS was $0.43, down from $0.56 in the prior year's fourth quarter, which was also affected by restructuring charges. Management highlighted the exclusion of specific items from their 2008 guidance, including the 2007 gain on divestiture and the 2007 restructuring charge, underscoring their focus on core operational performance going forward. Investors should note the nature of these one-time items and restructuring activities when evaluating the company's financial trajectory.

Key Highlights

  • 1Full-year 2007 diluted EPS increased 22.5% to $2.94, compared to $2.40 in 2006.
  • 22007 results included a $0.03 diluted EPS gain from the divestiture of a mutual fund data business.
  • 32007 results included an $0.08 restructuring charge related to the reduction of 611 positions.
  • 4Fourth quarter 2007 diluted EPS was $0.43, including an $0.08 restructuring charge.
  • 5Fourth quarter 2006 diluted EPS from operations was $0.56, including a $0.03 restructuring charge.
  • 6Company provided guidance for 2008 that excludes specific 2007 charges and gains for comparability.
  • 7The earnings release discussed adjusted operating profit by segment, excluding certain charges and gains from both 2007 and 2006.

Frequently Asked Questions

The McGraw-Hill Companies reported a strong increase in full-year diluted earnings per share (EPS) for 2007, which grew by 22.5% to $2.94 compared to $2.40 in 2006. This growth included a one-time gain from selling a mutual fund data business and a restructuring charge.

For the fourth quarter of 2007, diluted EPS was $0.43, which included an $0.08 restructuring charge. This compares to $0.56 in the fourth quarter of 2006, which also had restructuring charges.

The company provided adjusted financial metrics that exclude certain items to allow for better year-over-year comparisons. These exclusions include restructuring charges from 2007 and 2006, a charge for terminating a stock option restoration program in 2006, and a gain from the sale of a mutual fund data business in 2007.

Restructuring activities in 2007 led to a charge of $0.08 per diluted share, primarily related to a reduction of 611 positions. In the fourth quarter of 2007, the restructuring charge was also $0.08 per diluted share. The prior year (2006) also included restructuring charges.