McGraw-Hill's 4Q profit falls on one-time charges

NEW YORK — McGraw-Hill Cos. on Tuesday said its fourth-quarter profit fell 8 percent due to one-time charges, while its revenue rose, matching Wall Street expectations.

Its guidance for this year was mostly below Wall Street expectations. Its shares fell $2, or 5.1 percent, to $36.98 in afternoon trading.

Although best known for publishing textbooks and other educational materials, the New York-based company also provides marketing research and analysis to corporate clients and owns the financial ratings agency Standard & Poor's. The company also operates a handful of local broadcasting affiliates.

The company reported net income of $153.8 million, or 50 cents per share, in the period ended Dec. 31, down from $167.3 million, or 53 cents per share, a year earlier.

Excluding restructuring and acquisition-related costs, the company said it earned 55 cents per share. Analysts polled by FactSet were expecting 53 cents per share. Analysts typically exclude such one-time items from their estimates.

Revenue rose to $1.52 billion from $1.46 billion, matching analysts' expectations.

The company's growth was led by a 13 percent jump in financial services revenue, which offset declines in McGraw-Hill's education and market research segments.

While the company's education business declined during the quarter, however, it saw modest 1.9 percent growth for the year.

During 2010, the company reported net income rose to $828.1 million, or $2.65 per share, up from $730.5 million, or $2.33 per share, in 2009. Revenue rose to $6.17 billion from $5.95 billion.

In 2011, the company expects to earn between $2.79 and $2.89 per share. Analysts expect $2.89 per share.