March 11, 2008
Lunch for Tuesday, March 11

Blackwell Powers Good Quarter at Wiley
Wiley announced third quarter sales of $429 million, up sharply with the addition of Blackwell Publishing and still up 6 percent compared to a year ago even without Blackwell. They reported adjusted net income of $40 million, and adjusted earnings per share rose 7 percent for the quarter "excluding certain one-time tax benefits and Blackwell" and were well ahead of anaylsts' expectations. Blackwell itself accounted for $115 million in sales and $16 million in operating income. Based on the strong quarter, the company increased its sales guidance for the fourth quarter by about $20 million, now projecting revenue of $470 million and earnings of at least 20 cents a share.
 
Professional/Trade sales in the US rose two percent in the quarter, to $103 million, "mainly due to growth in the business and consumer programs, partially offset by softness in technology and higher sales returns." They also suffered "lower gross margins due to product mix and the timing of advertising costs." The company adds, "licensing of rights worldwide and branded web site content continued to have a positive effect on results." They recovered $2 million in bad debt from the estate of the bankrupt AMS after having written off $5 million in bad debt a year ago.
 
In Europe Wiley cites "strong sales of indigenous P/T books" with sales rising 8 percent to $81 million, though much of that growth was due to currency exchange, moderated by "sluggish sales in... Wiley Canada's P/T business."
Release
 
In other financial market news, Amazon announced that they have purchased 87 percent of shares in Audible.com and according to the AP "has begun another offering period for remaining Audible shares, again for $11.50 each. The offering period will end Friday but may be extended."

Two Veterans Plant New House
Former Avon and Berkley publisher Lou Aronica and agent Peter Miller are creating The Story Plant, a publishing company focused on "commercial fiction and author development," intending to "develop writers over multiple books" and "focus on long-term relationships with commercial novelists." Distributed by Perseus Distribution, the line launches this fall with Sienna Skyy's AMERICAN QUEST, a contemporary romantic fantasy, and Jonathan Javitt's medical thriller CAPITOL REFLECTIONS.
 
Miller, who serves as marketing and rights director for the company, says in the announcement, "When we sign a Story Plant title, we're specifically looking at the book's film and foreign potential. We think the books on this list are going to be successful on a number of platforms." Foreign rights are being sold by Baror International.

The Most News that the Business Uses
Every day, we gather, report, recap and interpret the most publishing news, deal transactions, and job offers anywhere. Today's Lunch Deluxe includes these additional stories and links:
 
"Arab Booker" Named
Translation Glass Tilting to Half Full?
Two More Stores Headed for Closing
Penguin Adds More "Tastes"
 
along with our weekly analysis of 14 bestseller lists from around the country.
 
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Personnel News
April Hattori departed Hachette Book Group USA last month after six months as the company's first vp of communications, and now Little, Brown associate publisher Sophie Cottrell has been named as the company's new vp, communications director. Reporting to ceo David Young, Cottrell will join the company's executive management board, moving into the new position "as soon as her replacement is in place."
 
Cottrell's agenda includes managing internal and external communications, developing clear brand identity and projecting it internally and externally, overseeing HBG's environmental policy and philanthropic endeavors, and coordinating with the communications director at HBG UK and the head of corporate communications of Hachette Livre in Paris.
 
At Gotham Books, Patrick Mulligan has been promoted to editor.
 
Former PW publisher David Nudo is joining book social network Shelfari.com as director of sales and marketing, still based in New York.
 
In the Random House Publishing Group advertising and promotion department, Elizabeth Fabian has returned to the company as senior manager, advertising and promotions for the group. She was at Harcourt. Additionally, Jennie Morel has been promoted to advertising and promotions coordinator for Ballantine.
 

The Latest Jobs
We've added another 5 new job listings since yesterday morning at our industry-leading Job Board, the latest among about 125 opportunities still live in all.
 
For employers, we provide the unbeatable combination of the largest circulation in the business by far, a total focus on book publishing only, and the best prices anywhere.
 
And for job-seekers, we present great new possibilities every day and conveniences like an RSS ping to keep you posted on every new offering. Among the latest: 

Project Manager - Online Sales and Marketing  [Full Time]
Random House (New York, NY)
   
Art Director/Associate Art Director - Random House Publishing Group  [Full Time]
Random House (New York, NY)
   
Production Editor  [Full Time]
Kensington Publishing Corp. (New York, NY)
   
Designer - Random House Publishing Group  [Full Time]
Random House (New York, NY)
   
Associate Production Manager  [Full Time]
Henry Holt & Company (New York, NY)

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