Scholastic takes hit over UK distribution consolidation

<p>Scholastic&#39;s international business took at $5.7m hit in the UK over the consolidation of its distribution facilities and the closure of its joint venture with the Book People, according to second-quarter results issued by parent Scholastic Corp. The company said it expects to take a further charge over the year, based on its plan to restructure operations in the UK, which would bring the total write-off up to between $7m and $10m.<br /><br />Sales in the international business in the second quarter to 30th November 2009 were $130.9m, compared to $122m in the prior year period. It said excluding a positive foreign exchange impact of $8.9m in the period, revenue held level year-over-year. This reflected higher sales in Canada, Asia and Australia, offset by a decline in export sales. Segment operating income was $20.5m, compared to $14m a year ago, not including the UK write-off.<br /><br /><a href="../news/101634-scholastic-in-consultation-with-staff-over-distribution-changes.html" target="_blank" title=" the beginning of November Scholastic UK announced it was moving its trade distribution to HarperCollins with the possible loss of 31 jobs. </a>It also plans to move its Book Fair distribution from a rented site in Coventry to an owned facility in Southam, Warwickshire, which is 15 miles away. <a href="../news/88976-scholastic-and-tbp-unravel-red-house-joint-venture.html" target="_blank" title=" June the company revealed that its joint venture with The Book People was to be broken up, with Scholastic retaining the School Link book club.</a> <a href="../news/93205-up-to-nine-jobs-to-go-at-scholastic.html" target="_blank" title=" August, it announced that up to nine jobs could be lost with the relocation of its education team from rented offices in Leamington Spa to offices owned by the publisher in Witney, Oxfordshire.</a> <a href="../news/107155-scholastic-md-mcquade-leaves-murray-hill-takes-over.html" target="_blank" title=" this week, Scholastic Children&#39;s Books managing director Elaine McQuade declared her intention to leave the company, with Hilary Murray Hill, sales and marketing director, taking on her position.</a><br /><br />Overall, at Scholastic Corp, revenue for the quarter was $660.1m, up 1%. Operating income was $105.6m compared with $108m a year earlier.</p>