McGraw-Hill Cos. Begins Tribune Integration

Jim Milliot |

Oct 23, 2000

News
McGraw-Hill Cos. Begins Tribune Integration Jim Milliot -- 10/23/00 The McGraw-Hill Cos. is in the process of integrating the recently acquired Tribune Education divisions into its own units in a move that will result in only the Wright Group continuing to operate as a stand-alone unit. As a result of the integration, an undetermined number of jobs from the old Tribune units, especially back-office functions, are being eliminated. In addition, MHC will close the Landoll printing facility by the end of October, a move that will cut several hundred jobs, and more changes may be in store for Landoll. Speaking to analysts over the summer, MHC education president Bob Evanson said that Landoll had not been part of MHC's original offer and was added at the "11th hour" when MHC decided it needed to bid for the whole company. Evanson indicated he was interested in retaining Landoll's education operations--which he said accounted for about one-third of its business--but was not sure how deeply MHC wanted to go into the mass market consumer business. Landoll recently gave up part of its Nickelodeon license to Golden Books (see News Shorts) MHC said it expects to see "considerable savings" once the integration is completed. The former Tribune companies, which MHC officially acquired on September 5, added $25.5 million in sales to revenues at MHC's education group for the third quarter ended September 30, 2000. Total revenues at the education publishing unit rose 10.1% in the third quarter to $844.2 million, while operating profits increased 8.6% to $255.2 million. The company's school publishing segment had a solid quarter with strong performances in reading, social studies, literature and science in major adoption states. The company performed particularly well in Texas and California, but MHC noted that spending in open territories was less than expected. In other areas, the higher education unit had a double-digit increase in operating profits in the quarter, led by a strong frontlist. In international publishing, gains were led by sales in the Latin American and Asian-Pacific groups. Profits declined in the professional publishing division due to softness in key markets. For the nine-month period, revenues in the education group climbed 13.9%, to $1.53 billion, and operating income was ahead 17.1%, to $272.3 million.

News

McGraw-Hill Cos. Begins Tribune Integration
Jim Milliot -- 10/23/00

The McGraw-Hill Cos. is in the process of integrating the recently acquired Tribune Education divisions into its own units in a move that will result in only the Wright Group continuing to operate as a stand-alone unit. As a result of the integration, an undetermined number of jobs from the old Tribune units, especially back-office functions, are being eliminated. In addition, MHC will close the Landoll printing facility by the end of October, a move that will cut several hundred jobs, and more changes may be in store for Landoll. Speaking to analysts over the summer, MHC education president Bob Evanson said that Landoll had not been part of MHC's original offer and was added at the "11th hour" when MHC decided it needed to bid for the whole company. Evanson indicated he was interested in retaining Landoll's education operations--which he said accounted for about one-third of its business--but was not sure how deeply MHC wanted to go into the mass market consumer business. Landoll recently gave up part of its Nickelodeon license to Golden Books (see News Shorts) MHC said it expects to see "considerable savings" once the integration is completed.

The former Tribune companies, which MHC officially acquired on September 5, added $25.5 million in sales to revenues at MHC's education group for the third quarter ended September 30, 2000. Total revenues at the education publishing unit rose 10.1% in the third quarter to $844.2 million, while operating profits increased 8.6% to $255.2 million. The company's school publishing segment had a solid quarter with strong performances in reading, social studies, literature and science in major adoption states. The company performed particularly well in Texas and California, but MHC noted that spending in open territories was less than expected.

In other areas, the higher education unit had a double-digit increase in operating profits in the quarter, led by a strong frontlist. In international publishing, gains were led by sales in the Latin American and Asian-Pacific groups. Profits declined in the professional publishing division due to softness in key markets.

For the nine-month period, revenues in the education group climbed 13.9%, to $1.53 billion, and operating income was ahead 17.1%, to $272.3 million.

A version of this article appeared in the 10/23/2000 issue of Publishers Weekly under the headline: