Scholastic Income Drops in Quarter

Scholastic Corp. reported a net income of $43.1 million for the second quarter, a decrease from $75.6 million in the prior year.

The direct marketer of books reported revenue of $661.6 million for the quarter ended November 30, a decrease from $687.6 million last year.

Management attributed these results partly to severance and one-time expenses associated with its cost reduction plans, as well as an unfavorable foreign exchange rate.

The New York company said it achieved its cost-saving goals by eliminating $35 million in annualized expenses, including $25 million in salary expense.

In addition, the firm said it has reduced its spending plan for the second half of fiscal 2009 by a further $20 million by eliminating management bonuses and reducing all categories of discretionary spending.