The McGraw-Hill Companies' stock price took a dive last week when the media company became the latest corporation to lower its sales and earnings expectations for the year. Although company chairman Terry McGraw said MHC's information and media group would be the hardest hit by the "rapidly deteriorating" economic conditions, results in the company's education group will also not reach projected targets for the third quarter and full year.
McGraw said falling tax receipts have caused a number of states, primarily in the South and West, to cut funds for textbook purchases, and the company's second school division, Glencoe, was particularly affected by the cutbacks. Sales in the group's professional books division also have been weak, especially in the computer book segment, and nearly all international operations have had slower-than-expected sales. Sales at the former Tribune Education properties will be down by about 5% to 7% from pro forma revenues of $342 million last year, due to shortfalls from the Wright Group and the children's publishing division.
