'Very strong' results for Scholastic

<p>Scholastic has reported &quot;very strong&quot; results for the fourth quarter ending 31st May 2010 and the company has made a net income of over $56m for the financial year after making a loss the previous year. <br /><br />The global children&#39;s publisher saw revenues rise to $1,912.9m in the 2010 fiscal year, up 3% from $1,849.3m the year before. It also saw a net income of $56.1m, up considerably from the loss made of $14.3m in the previous year. In the fourth quarter, revenue was $538.4 million, up 9% from the prior year period.</p><p>International revenue for the full year was $412m, compared to $399m in the prior year, reflecting a $27.2m positive foreign exchange impact. In local currencies, sales declined in Canada and the UK, but were partly offset by gains in Asia. The declines excluded &quot;one-time expenses&quot; associated with restructuring in the UK of $0.5m. Operating income for the segment increased more than 50% to $38.5m, compared to $24.3m a year ago. This improvement primarily resulted from higher profits in Australia, Canada and Asia, as well as an unfavourable impact of foreign exchange in the prior year.</p><p>International revenue for the fourth quarter was $116.8m, compared to $105.6m a year ago. Operating income was $17.8m, increasing over 70% from $10.3m in the prior year, primarily as a result of lower costs in Canada and Australia.</p><p>Richard Robinson, chairman, president and chief executive officer, said: &quot;Strong execution of the three elements of our fiscal 2010 plan - driving growth in Scholastic Education, improving efficiencies in Children&#39;s Books, and tightly managing costs and cash - contributed to a very strong fourth quarter, enabling Scholastic to beat our targets for earnings and free cash flow growth.&quot;<br /><br />He added: &quot;Having reduced overhead costs, strengthened our core children&#39;s book businesses and expanded our educational technology and services business in recent years, we achieved our long-term operating margin goal and further strengthened our balance sheet in fiscal 2010.&quot;<br /><br />Robinson said: &quot;Scholastic&#39;s plan for fiscal 2011 is to sustain last year&#39;s strong operating income before spending approximately $20 million to invest in Children&#39;s Books&#39; key digital opportunities - e-commerce and e-books - reflecting the accelerating change and growth in these areas.&quot; </p>