Nontraditionalservices,includingfinancialstrengthandderivativeproductratingsandratingevaluation
services,alsogrewrapidly.
"NewissuedollarvolumeintheU.S.marketgrewbyonly0.6%inthethirdquarterascorporateissuance
declined40.1%,accordingtoSecuritiesDataCorp.Forthesameperiod,municipalissuancegrewby
42.9%,assetbackedissuancewasup13.2%andmortgagebackedissuanceincreasedby43.5%.
"NewissueunitvolumeintheU.S.marketdeclinedby2.5%inthethirdquarter.Corporateissuancefell
47.9%,accordingtoSecuritiesData.Municipalunitvolumegrewby3.2%fortheperiod.Assetbacked
issuancewasup4.3%andmortgagebackedunitvolumegrewby10.0%.
"InEurope,thedollarvolumeofbondissuanceincreased3.0%whilethenumberofissuesgrewby1.0%
forthethirdquarter,accordingtoBondware.
"CutbacksbyfinancialfirmsandreducedInternetredistributionservicesledtoreducedrevenuein
investmentproductsandservices,buttightcostcontrolsandgrowthinhighermarginproducts,including
indexes,producedasubstantialgaininprofitability.Despitedeclinesinthestockmarketinthethird
quarter,assetsundermanagementinexchangetradedfundsusingStandard&Poor'sindexesgrewby
27.5%to$49.1billion.
InformationandMediaServices:"Revenueforthissegmentdeclined2.1%to$182.5million,but
operatingprofitsclimbedby138.7%to$19.8million.TheacquisitionofFinancialTimesEnergyin
September2001contributedanincremental$8.4milliontothesegmentrevenueinthethirdquarter.
"Stringentcostcontrolsandsomeimprovementinadvertisingcombinedtoproducethebestresultssofar
thisyearinthesegment.Withimprovingnationaltimesalesandaboostfrompoliticaladvertising,
revenuefortheBroadcastingGroupincreasedby10.5%.
"Revenuedeclinedby4.0%attheBusinesstoBusinessGroup,whichincludesBusinessWeekandour
verticaloperationsinconstruction,energy,aviationandhealthcare.Withonemoreissueinthethird
quarterthisyear,BusinessWeekadpagesnudgedintopositiveterritoryforthefirsttimein2002witha
modestincreaseof0.3%forthelatestperiod,accordingtothePublishersInformationBureau(PIB).
BusinessWeek'sadpagesdropped33.4%inthefirstquarterand20.4%inthesecondquarter.
Theoutlook:"Withcontinuedstrengthinkeymarkets,effectivecostcontrolsandfavorableinterest
expensecomparisons,weconfidentlyexpecttoachieveourdoubledigitearningsgoalfortheyear."
Conferencecallscheduled:TheCorporation'sseniormanagementwillreviewthethirdquarter2002
earningsresultsonaconferencecallscheduledforthismorning,October22nd,at9:00AMEastern
Time.Thiscallisopentoallinterestedparties.Discussionsmayincludeforwardlookinginformation.To
participatebytelephone,pleasedialinby8:45AMEasternTimetoregisterforthecall.Domestic
participantsmaycall888/5665772;internationalparticipantsmaycall+1712/2710857(longdistance
chargeswillapply).ThepasscodeisMcGrawHillandtheconferenceleaderisHaroldMcGrawIII.The
conferencecallwillalsobeWebcastandcanbeaccessedthroughTheMcGrawHillCompanies'Investor
RelationsWebsite.Goto:www.mcgrawhill.com/investor_relationsandclickonthe|WEBCASTLIVE|
button.Atthenextscreen,selecttheWebcastlinkunderListeningOptions.YouwillneedWindows
MediaPlayer.TheWebcastreplaywillbeavailableuntilOctober29,2002.
Toviewthepresenters'slidesonline,gotohttp://www.mymeetings.com/nc/join.TheNetConference
meetingnumberisPH8648870,thepasscodeisMCGRAWHILL(casesensitive),andtheeventtypeis
"Conference."ClickontheProceedbutton.YouwillneedWindowsMediaPlayer.