RE: Elsevier plus LexusNexis: profits up for 2008, to over $1.5 billion U.S.

["David Prosser" <david.prosser@bodley.ox.ac.uk>]

John is, of course, right about the mixed nature of Reed 
Elsevier's business, but it is clear that the Elsevier part of 
the business has the highest margins and contributes the largest 
profit (based on reported 2007 figures, the last year for which I 
could find full accounts:

http://www.investis.com/reports/reed_ar_2007_en/report.php?type=1

I'm not clear about the pensions argument, which I hear advanced 
from time to time.  If the journals market is dysfunctional (as 
the European Commission, UK Science and Technology Committee, 
amongst others have concluded) are we saying that as a matter of 
public policy that's OK if one result of the dysfunction is that 
some pension funds do well?  Surely governments fund libraries to 
allow them to acquire information, not support pension funds.

David Prosser
SPARC Europe

-----Original Message-----
From: owner-liblicense-l@lists.yale.edu
[mailto:owner-liblicense-l@lists.yale.edu] On Behalf Of jOHN cOX
Sent: 28 February 2009 00:36
To: liblicense-l@lists.yale.edu
Subject: RE: Elsevier plus LexusNexis: profits up for 2008, to over $1.5
billion U.S.

We need to be very careful with comments on the results of a 
large company like Reed Elsevier.  It has four businesses: 
Elsevier, LexisNexis, Reed Exhibitions and Reed Business 
Information.  Not all the RE profit can be attributed to the 
Elsevier segment, and not all of Elsevier's sales are made to 
universities.  The growth in RE's profit is largely due to 
cost-cutting within its businesses.  All this is apparent from 
its web site.

RE is a well run company.  Its investors include our pension 
funds and mutual funds.  My own pension fund has not invested in 
RE.  I wish it had. Things are never quite as simple as postings 
to this list might pretend.

John Cox
Managing Director
John Cox Associates Ltd
United Kingdom
E-mail: John.E.Cox@btinternet.com
Web: www.johncoxassociates.co.uk


-----Original Message-----
From: owner-liblicense-l@lists.yale.edu
[mailto:owner-liblicense-l@lists.yale.edu] On Behalf Of Jamie Furrh
Sent: 26 February 2009 22:54
To: liblicense-l@lists.yale.edu
Subject: RE: Elsevier plus LexusNexis: profits up for 2008, to over $1.5
billion U.S.

I don't believe Heather ever said that a commercial business
should "strive to break even". I think the point highlighted is
that at a time when we are in severe economic distress, where
libraries (i.e. entire campuses) are losing access to research
material as a result of budget cuts and serial inflation, there
is a business that is netting 1.5 billion in profit from the same
libraries which are facing crushing decisions (like laying off
personnel).

Is this type of business practice ethically moral to end users
which are largely universities? Making profits is one matter, but
at what point does it become pure greed and detrimental to our
economy's health?

Jamie Furrh
Digital Projects Librarian

>>> Norman Frankel <publishing2@hotmail.com> 2/25/2009 7:58 PM >>>

I agree with Sandy.  It is not quite clear to me why one would
expect a commercial business to "strive to break even."  This is
a rather odd economic model.

Norman Frankel
Publishing Consultant

Skokie, Illinois