MC GRAW-HILL CO : The McGraw-Hill Companies Announces Restructuring of Select Business Operations

NEW YORK, Jan. 6 /PRNewswire-FirstCall/ -- The McGraw-Hill Companies (NYSE: MHP) today announced that it restructured a limited number of business operations and corporate functions in the fourth quarter of 2008 to serve its markets more efficiently in the current economic environment while positioning the company for future growth.

"Our diverse portfolio of businesses and ongoing cost containment efforts have helped lessen the impact of challenging economic conditions in 2008," said Harold McGraw III, chairman, president and chief executive officer of The McGraw-Hill Companies. "The actions we are announcing today are a continuation of these efforts and will help us continue to manage the company efficiently through a difficult environment while taking all necessary steps to better serve our customers and shareholders."

In connection with these actions, the Corporation incurred a restructuring charge in the fourth quarter of 2008 of $26.3 million, pre-tax, consisting mostly of employee severance costs related to a workforce reduction of approximately 375 positions across the Corporation. The total restructuring charge after tax is $16.4 million, or $0.05 per diluted share of fourth quarter 2008 earnings.

The actions taken in the fourth quarter will help the Corporation focus its resources on more profitable areas of the business while streamlining its operations to serve customers in a more cost-effective manner.

The following table summarizes the Corporation's fourth quarter 2008 restructuring actions:

                            4Q 2008 Restructuring Summary
                        (in thousands, except for positions)

                                              Approximate
                                                # of        Restructuring
                                               Positions       Charge
                                              -----------   -------------
      McGraw-Hill Education                        215        $11,396
      Financial Services                            50          6,588
      Information & Media                           70          5,312
      Corporate (including Shared Services)         40          3,000
                                              -----------   -------------
                 Total Company                     375        $26,296
                                              ===========   =============

When combined with the actions announced in the second and third quarters of 2008, the Corporation will incur restructuring charges for the full year of 2008 totaling $73.4 million, pre-tax, ($45.9 million after-tax) or $0.14 per diluted share.

The following table summarizes the Corporation's full-year 2008 restructuring actions:

                       Full-year 2008 Restructuring Summary
                       (in thousands, except for positions)

                                              Approximate
                                                # of        Restructuring
                                               Positions       Charge
                                              -----------   -------------
      McGraw-Hill Education                        455        $25,294
      Financial Services                           340         25,879
      Information & Media                          210         19,217
      Corporate (including Shared Services)         40          3,000
                                              -----------   -------------
                 Total Company                   1,045        $73,390
                                              ===========   =============

About The McGraw-Hill Companies:

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com.

Homepage: http://www.mcgraw-hill.com

Investor Relations: http://www.mcgraw-hill.com/investor_relations

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Release issued: January 6, 2009

SOURCE The McGraw-Hill Companies