Scholastic recently reported third quarter financial results. Overall sales were up a bit, at $458 million, but they had a larger net operating loss ($4.6 million). The total loss, however, was much higher, because it included a $72.7 million writedown on the discontinued direct-to-home continuities business.
In their children's book publishing and distribution segment, sales were $230 million, down $9 million from a year ago, although operating income rose nearly 10%, to $10.2 million. Trade publishing was up, still feeling the effects of Harry Potter, while school book club and school-based continuity sales fell.
The company (Nasdaq: SCHL) also revised their sales and earnings forecast for fisal 2008, expecting lower sales but better income. The new projections anticipate total revenues of $2.2-2.3 billion (down from a range of $2.3-2.5 billion), and earnings of between $2.50 and $2.85 per share (earlier estimate: $2.35 to $2.85 per share.) Thomson Financial's survey of analysts shows consensus expectation of earnings at $2.79 a share.
CEO Dick Robinson said "Scholastic's core businesses performed solidly overall in the third quarter as we maintain our focus on improving profitability. Looking ahead, we expect the ongoing businesses to meet our fiscal 2008 goals and are on track to achieve 9 to 10% operating margins in fiscal 2010."
More details are available in this press release.
|
