Third quarter sales down at Wiley

<p>John Wiley &amp; Sons has reported &quot;disappointing&quot; trading at its Professional/Trade division in its third quarter blaming a &quot;very weak retail environment&quot; in the US. The group has also been hit by what it described as a &quot;significant and unprecedented&quot; impact from exchange rates.</p><p>Third quarter sales dropped by 2% after adjusting for currency fluctuations. The decline on a currency neutral basis was primarily due to market conditions affecting the Professional Trade business, the company said, and processing delays in Scientific, Technical, Medical and Scholarly dividion related to journal subscription renewals, which it added would be resolved prior to fiscal year-end. Including the negative impact of foreign exchange, third quarter revenue decreased 13% to $374m.</p><p>Global revenue at its Professional Trade business declined 19% to $100m in the third quarter compared to $123m in the prior year, or a 14% decrease, excluding the impact of foreign exchange rates. The decline was attributed to a very weak retail environment, particularly in the US. Modest growth was recorded in Canada, Germany, and the UK, the company said. Profit was $25m compared to $38m for the third quarter of last year. The decline was partially mitigated, the company said, by prudent expense management and lower accrued incentive compensation. </p><p>William Pesce, president and c.e.o., said: &quot;As anticipated earlier in the year, the unfavourable effect of foreign exchange on Wiley&#39;s revenue and earnings is significant and unprecedented. In addition, economic conditions have had an adverse effect on our Professional Trade business, particularly in the US. While the results in Professional Trade are disappointing, it is encouraging that we have increased market share in key publishing categories. Our global STMS and Higher Education businesses are performing well.&quot;</p><p>Pesce added: &quot;We are reducing revenue guidance from mid single digit growth to low single digit growth on a currency neutral basis, principally due to market conditions affecting our Professional/Trade business.&quot;</p><p>Global STMS revenue for the third quarter declined 13% to $202m mainly due to an unfavourable $35m foreign exchange impact. On a currency neutral basis, revenue advanced 2%. Direct contribution to profit for the third quarter fell 13% from prior year to $75m. On an exchange neutral basis, contribution to profit advanced 2%.</p><p>Global Higher Education revenue declined 2% to $72m in the third quarter due to unfavourable foreign exchange. Revenue advanced 7% on a currency neutral basis, driven by strong growth in nearly every subject category, higher-than-expected revenue from recently-acquired textbooks, new editions, and the continued success of WileyPLUS. With the exception of Asia, which continues to be impacted by the devaluation of the Indian Rupee, all regions exhibited growth. Direct contribution to profit rose 2% to $29m, or 15% excluding unfavourable foreign exchange.<br />&nbsp;</p><p>&nbsp;</p>