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

["jOHN cOX" <John.E.Cox@btinternet.com>]

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