S&P Global (NYSE: SPGI) today reported fourth quarter and full-year 2018 results. The Company reported fourth quarter 2018 revenue of $1.54 billion, a decrease of 3% compared to the same period last year as a decline in Ratings revenue, primarily resulting from a decline in global debt issuance, offset revenue increases in the Company’s other three businesses. On an organic basis, fourth quarter revenue decreased 4%.
Fourth quarter net income increased 95% to $512 million and diluted earnings per share increased 99% to $2.03. Both increased due to a charge associated with U.S. tax reform included in the prior year quarter as well as productivity improvements and a lower effective tax rate as a result of U.S. tax reform impacting the current quarter. Adjusted net income for the fourth quarter increased 18% to $559 million due to productivity improvements and a lower effective tax rate as a result of U.S. tax reform. Adjusted diluted earnings per share increased 20% to $2.22 aided by a 2% reduction in diluted shares outstanding. Pre-tax adjustments in the fourth quarter of 2018 totaled $62 million and included deal-related amortization, restructuring charges, Kensho retention-related expenses, and a pension accounting adjustment.
For the full year, revenue increased 3% to $6.26 billion. 2018 net income increased 31% to $1.96 billion and diluted earnings per share increased 34% to $7.73. 2018 adjusted net income increased 21% to $2.15 billion and adjusted diluted earnings per share increased 23% to $8.50.
“While bond issuance can be periodically interrupted by market forces, as was the case during the second half of 2018, we remain confident that, in the long run, global debt market growth will track GDP growth. Despite the return of market volatility in 2018, the Company continued to grow revenue and increase profitability, putting us well on our way to deliver on the financial targets we announced at our Investor Day in May,” said Douglas L. Peterson, President and Chief Executive Officer of S&P Global. He added, “In 2018, we continued to build our capabilities by adding leading-edge technology and unique data sets through the acquisitions of Kensho, Panjiva, and RateWatch; preparing for new product launches including ESG tools using Trucost analysis and domestic bond ratings in the China market; and leveraging technology to improve operational excellence through productivity improvements. As we look ahead and across the globe, we’re positioned more strongly than ever to provide the essential intelligence our customers need to make decisions with conviction.”
more detail at: http://investor.spglobal.com/file/Index?KeyFile=396655418