Despite changes in accounting policy that should have contributed to a more favorable result, industrial and professional publishing group McGraw-Hill posted a 12% fall in fourth quarter profits, down to $106.1 million (or 54 cents a diluted share).

This compares to $120.9 million (61 cents) in Q4 1999 when the group benefited from the sale of its Petrochemical Publications unit. During that period there were also changes to accounting policy, specifically the treatment of subscription revenues and other upfront contracts.

The group also warned that Q1 net income will not meet Wall Street expectations, largely due to the change in accounting procedures.

Accounting prestdigitation aside, McGraw profits hit $98.1m (50 cents a share), in accord with most analysts’ expectations. Revenues rose by 5% to $1.09 billion.

News source: Wall Street Journal