Scholastic cuts outlook as sales of high-margin products fall
Nov 20 (Reuters) - Children's book publisher Scholastic Corp reduced its forecast for the fiscal year ending May 31, 2013 on lower sales in its high-margin educational business.
The publisher of the "Hunger Games" series said it now expects earnings from continuing operations of between $1.40 and $1.60 per share on revenue of about $1.8 billion to $1.9 billion.
The company previously forecast earnings of between $2.20 and $2.40 per share on revenue of about $1.9 billion to $2.0 billion.
Sales of its educational technology products fell as school funds were kept aside for training educators and administrators, and purchasing decisions were delayed, Scholastic said.
Its educational products include READ 180, an educational program aimed at improving reading skills among school children.
The company said in September that fears of the federal budget falling off a "fiscal cliff" were slowing spending by schools.
Scholastic also revised the outlook for its children's book segment to reflect lower sales in its book club business, lower-than-expected U.S. sales of "The Hunger Games" trilogy, and the impact of Superstorm Sandy.