McGraw-Hill swings to loss on big charge in 4Q

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Associated Press

Posted on February 12, 2013 at 8:01 AM

Updated Tuesday, Feb 12 at 8:02 AM

WASHINGTON (AP) — The McGraw-Hill Cos. swung to a net loss in the fourth quarter as it took a big charge on the pending sale of its educational publishing division.

Without the charge, the company's earnings increased sharply but fell short of Wall Street's forecasts.

McGraw-Hill lost $216 million, or 78 cents, in the three months ended Dec. 31. That compares with net income of $214 million, or 75 cents per share a year earlier. Revenue rose 22 percent but also fell short of expectations.

The quarter ended weeks before the U.S. government filed civil charges alleging that Standard & Poor's, McGraw-Hill's credit rating division, fueled the financial crisis by giving high ratings to risky investments.

The company reiterated that the lawsuit is without merit and relies on incomplete evidence.

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