McGraw-Hill education business has reported a 7.2% increase to $2.7bn in revenues for 2007 compared to 2006. In the same period operating profit grew by 21.5% to $400m. Within the education business, the School Education Group's revenue increased by 6.8% to $1.4bn in 2007 and the Higher Education, Professional and International Group's revenue increased by 7.6% in 2007 to $1.3bn compared to the same period a year ago. The company’s new state adoption business grew by 19% in 2007 with a 32% capture rate, including contract wins in California and South Carolina for McGraw-Hill’s K-12 science programme. The company also won a 5-year $80m testing contract in New York City for its new formative testing programme, Acuity.

At the same time around 300 jobs in McGraw-Hill’s education business were cut during the fourth quarter of 2007, costing the group $16.3m in severance costs. The reductions in staff mainly affect McGraw-Hill’s education operations outside the US covering sales, editorial, marketing and administrative functions, as demand for textbooks drops and demand for digital products increases.

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