Scholastic Profit Dips on Severance Costs

NEW YORK -- Book publisher Scholastic (SCHL Quote) said Thursday its fiscal second-quarter profit fell 43%, as revenue declined and the company booked severance payments and larger losses on discontinued operations.

Scholastic also lowered its fiscal 2009 adjusted earnings forecast due to further spending cuts, market conditions and year-to-date results.

Shares shed $2.14, or 13%, to $14.39 in afternoon trading. The stock has fallen 61% since peaking at a 42-week high of $37.57 in February, with shares falling off dramatically since the company's first-quarter financial report in September.

For the period ended Nov. 30, net income dropped to $43.1 million, or $1.15 per share, from $75.6 million, or $1.93 per share, in the prior-year period. Earnings from continuing operations fell to $58.4 million, or $1.55 per share, including a one-time charge of 17 cents per share for severance payments and other cost-cutting measures. ...