Reader's Digest Association Reports 4Q Fiscal 2006 Results: Profits Improve at RD North America and RD International, Offset by Declines at Consumer Business Services and Restructuring Charges
Wednesday August 2, 7:00 am ET PLEASANTVILLE, N.Y., Aug. 2 /PRNewswire-FirstCall/ -- The Reader's Digest Association, Inc. (NYSE: RDA - News) today reported results for the fourth quarter and full year of Fiscal 2006 ended June 30, 2006. Results for the Fiscal 2006 fourth quarter, versus the same quarter in Fiscal 2005:
* Revenues were $557 million, up slightly versus last year. Adjusting
for foreign-currency exchange fluctuation, consolidated revenues were
down 1 percent.
* Reported operating profits were $28 million, including a $(10) million
restructuring charge, mainly for Books Are Fun (BAF), a $(7) million
inventory charge to revalue BAF inventory for discontinued lines of
business and to facilitate sales through alternative channels, and a
$(6) million charge at QSP reflecting the cost of a strategic reduction
in chocolate purchases. Reported operating profits in the Fiscal 2005
fourth quarter were $28 million.
* Adjusted Operating Profits were $45 million, versus $39 million in
Fiscal 2005 (see table).
