Strong gains in its worldwide operations helped lift sales at McGraw-Hill Education 2.0% in 2004, to $2.4 billion, while operating profits rose 5.7%, to $340.1 million.
Driven by solid growth overseas, revenue in the company's Higher Education, Professional and International (HPI) group increased 4.8%, to $1.1 billion. Terry McGraw, chairman of M-H Education parent company McGraw-Hill Cos., told analysts in a year-end conference call that "the emergence of higher education as a global industry is in full swing." The company expects international sales to post good gains in 2005. In the U.S. higher education market, sales were up in all M-H's major imprints. HPI's computer books continued to decline worldwide in 2004.
In M-H Education's school group, revenue dipped 0.3%, to $1.3 billion. A 9% sales increase in the fourth quarter helped to limit declines for the year as increases in the supplementary business somewhat offset declines of basal texts.
McGraw expects sales for the elhi market to increase by more than 10% in 2005 and that M-H Education should grow as fast as the rest of the industry. Sales in the college market are projected to increase 3% to 4% this year. McGraw predicts M-H Ed will beat the industry average. Science, engineering and math are expected to be the fastest-growing subject areas in 2005.
