AAHSL: More on Elsevier

[Tom Williams <twilliam@bbl.usouthal.edu>]

In figuring out the profit margin for Elsevier and Science Direct, we have
to differentiate between the two.  In the article below from a year ago,
it is stated that SD had a whopping gross increase of 44% with a net
profit of 34%.  There were several areas of Reed-Elsevier that actually
lost money.  When Reed-Elsevier factors in its losing departments and
those doing so-so to good and then includes the Science Direct profits,
the overall profit margin may then be in the 10-15% range.  The overall
Reed-Elsevier profit is not what we are most concerned with but rather the
SD profit.  That's the one that comes off of our collective backs.  No
matter how they spin the numbers, our budgets are being routinely sacked.  
The high prices we pay are used to bolster weaker divisions of the company
See the article below.

-- 
Thomas L. Williams, AHIP
Director, Biomedical Libraries 
University of South Alabama
College of Medicine
Mobile, Al 36688-0002
tel. (251)460-6885
fax. (251)460-7638
twilliam@bbl.usouthal.edu

---------- Forwarded message ----------

  ****************MARKETPLACE NEWS*****************
  SCIENCE DIRECT, HARCOURT PACING REED ELSEVIER
  There was fierce opposition in the library community last
  year to Reed Elsevier's acquisition of Harcourt General,
  saying the move would further concentrate publishing power
  under one giant corporate umbrella, diminishing the
  bargaining power of customers. While the jury is still out
  on how the deal is affecting library budgets, early returns
  for Reed Elsevier shareholders are clearly positive. Nearly
  a year after completion of the deal, analysts say Reed
  Elsevier shareholders are indeed reaping the financial
  benefits of the deal. Although not yet fully integrated,
  the Anglo-Dutch publisher reports that Harcourt, for which
  Reed Elsevier paid more than $4 billion, saw revenues jump
  a healthy 12 percent to $545.7 million, accounting for 12
  percent of Reed Elsevier's 2001 revenue. Meanwhile
  ScienceDirect, Reed Elsevier's online journal publishing
  operation also reported whopping growth in 2001. The
  company reported that ScienceDirect page views doubled in
  2001 to 220 million, with revenues in Reed Elsevier's
  Science and Medical division up by a staggering 44 percent,
  and operating profits up a hefty 34 percent.

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