Helter skelter 1999 at S&S US

Turnover at Simon & Schuster US increased 8% to $610.7m (£381.68m) in 1999, with operating profits up 2% to $54.3m (£33.9m). The figures showed a decline in profitability at the publisher in the second half of the year, which flattened a strong performance in the first six months.

Jack Romanos, chief operating officer, said that the drop in profitability was caused by extra investment in infrastructure in the latter half of 1999. The investment was needed for S&S US to operate as a stand-alone company following the sale of the professional arm, and for 300 more staff on the payroll.

Turnover in the first six months of the year was up 16.3%, compared to the first six months of 1998. Operating profit during the period was up 153.7%, but this slid to 2% in the third quarter and 22% in the fourth quarter. The rate of increase of turnover fell in the last two quarters, to 4% and 2% respectively.

Mr Romanos said the sharp differences in performance throughout 1999 were "routine publishing cycles". "We happened to have a really strong early part of the year. We had an Oprah selection, two Stephen King books, a Mary Higgins Clark. It's just the way the list came together."

Strong sales growth was reported by S&S US in the children's and adult trade sales sectors, although Pocket Books had a rougher ride. "Mass market was off and the young adult area was off this year, primarily due to the aging of some successful series," Mr Romanos said.