Wiley Poised to Pick Up Harcourt Pieces

Jim Milliot |

Dec 11, 2000

News
Wiley Poised to Pick Up Harcourt Pieces Jim Milliot -- 12/11/00 John Wiley & Sons president Will Pesce said the company is "actively monitoring" the government's review of Reed Elsevier's pending acquisition of Harcourt General and stands "ready, willing and able" to acquire pieces of Harcourt's Academic Press and/or college division lines if the government forces Reed to divest some properties before it will approve Reed's purchase of Harcourt. Pesce made the remarks in a conference call about the company's second-quarter results; for the period ended October 31, 2000, total company sales rose 4.5% to $157.1 million and net income climbed 19.8% to $16.9 million. For the first six months of the year, net income rose 21.9% to $33.4 million on a 7.2% revenue gain to $308 million. The second-quarter gains were led by Wiley's STM division, where operating profit increased 19% on a 7% gain in revenues. Journal renewal rates were higher than one year ago; Pesce noted that the group is testing producing journals in India, and that if the experiment is successful the company could expand the program to books. Sales in the Professional/ Trade segment were up 7% and net income rose 4%. Wiley said that frontlist sales were strong, particularly in the business and computer book areas, but that backlist sales were soft and returns from some accounts were higher than expected. Online sales for the first six months of the year nearly doubled, Pesce reported. Sales in the college segment rose 6% and operating earnings were up 3%. Wiley said sales in the second quarter were affected by early ordering from some college bookstores that wanted to ensure an adequate supply of books to fend off competition from online retailers. In Wiley's international operations, operating profit from Europe was up 28% on a 3% revenue gain, while revenue was up 5% in Wiley's other international segments. Strong gains in Asia were partially offset by sluggish sales at a major Canadian account. Pesce said he is encouraged about prospects for sales to China given that country's improved performance in fighting piracy. During the quarter, Wiley signed a host of electronic publishing deals. In addition to agreements with netLibrary and Lightning Source (News, Oct. 16), the company reached deals with PrimeLearning.com, MeansBusiness, Versaware and Adam.com. Pesce said that while Web-enabled revenues are currently not material, he expects such activities to account for 30% of total sales within three years.

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Wiley Poised to Pick Up Harcourt Pieces
Jim Milliot -- 12/11/00

John Wiley & Sons president Will Pesce said the company is "actively monitoring" the government's review of Reed Elsevier's pending acquisition of Harcourt General and stands "ready, willing and able" to acquire pieces of Harcourt's Academic Press and/or college division lines if the government forces Reed to divest some properties before it will approve Reed's purchase of Harcourt.

Pesce made the remarks in a conference call about the company's second-quarter results; for the period ended October 31, 2000, total company sales rose 4.5% to $157.1 million and net income climbed 19.8% to $16.9 million. For the first six months of the year, net income rose 21.9% to $33.4 million on a 7.2% revenue gain to $308 million.

The second-quarter gains were led by Wiley's STM division, where operating profit increased 19% on a 7% gain in revenues. Journal renewal rates were higher than one year ago; Pesce noted that the group is testing producing journals in India, and that if the experiment is successful the company could expand the program to books.

Sales in the Professional/ Trade segment were up 7% and net income rose 4%. Wiley said that frontlist sales were strong, particularly in the business and computer book areas, but that backlist sales were soft and returns from some accounts were higher than expected. Online sales for the first six months of the year nearly doubled, Pesce reported.

Sales in the college segment rose 6% and operating earnings were up 3%. Wiley said sales in the second quarter were affected by early ordering from some college bookstores that wanted to ensure an adequate supply of books to fend off competition from online retailers.

In Wiley's international operations, operating profit from Europe was up 28% on a 3% revenue gain, while revenue was up 5% in Wiley's other international segments. Strong gains in Asia were partially offset by sluggish sales at a major Canadian account. Pesce said he is encouraged about prospects for sales to China given that country's improved performance in fighting piracy.

During the quarter, Wiley signed a host of electronic publishing deals. In addition to agreements with netLibrary and Lightning Source (News, Oct. 16), the company reached deals with PrimeLearning.com, MeansBusiness, Versaware and Adam.com. Pesce said that while Web-enabled revenues are currently not material, he expects such activities to account for 30% of total sales within three years.

A version of this article appeared in the 12/11/2000 issue of Publishers Weekly under the headline: