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EXHIBIT 99.2
FOR RELEASE MONDAY, OCT. 2
BILL SUMMERS (media) SANDY PARKER (analysts/investors)
908.665.5377 908.665.5098
summersw@dnb.com parkerr@dnb.com
DUN & BRADSTREET BEGINS NEW ERA FOCUSED ON BECOMING
A GROWTH COMPANY WITH AN IMPORTANT PRESENCE ON THE WEB
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EXPECTS ANNUAL EARNINGS AND OPERATING INCOME GROWTH OF 10 PERCENT AND
REVENUE GROWTH OF 3 PERCENT FOR NEXT THREE YEARS
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UNVEILS BLUEPRINT FOR GROWTH TO UNLOCK SHAREHOLDER VALUE;
WILL TAKE A FOURTH-QUARTER CHARGE OF UP TO $100 MILLION
Murray Hill, N.J., Oct. 2, 2000 -- The Dun & Bradstreet Corporation (NYSE: DNB)
announced today a new business strategy designed to transform D&B into a growth
company with an important presence on the Web, while also delivering consistent
financial results during the transformation. The company expects annual earnings
per share and operating income growth of 10 percent and revenue growth of
approximately 3 percent (before the effect of foreign exchange) during the next
three calendar years.
D&B will reallocate a portion of its current spending to create the
financial flexibility needed to implement its new strategy and deliver these
results. The company has identified $100 million which will be reallocated to
enhance its current business, fund its Web strategy and ensure continued annual
earnings per share growth of 10 percent. The $100 million will be achieved
through globalizing administrative functions, streamlining data collection and
fulfillment, rationalizing sales and marketing functions and consolidating and
simplifying technology functions.
"Dun & Bradstreet is focused on implementing its new strategy and
maximizing value for shareholders," said Chairman and Chief Executive Officer
Allan Z. Loren, who today begins a weeklong road show to present the new
strategy to the investment community. Dun & Bradstreet separated from the
Moody's Corporation on Saturday, September 30, 2000.
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D&B's new strategy is designed to increase shareholder value while
investing to produce higher rates of growth over the long term.
CREATING AND IMPLEMENTING A BLUEPRINT FOR GROWTH
Under Loren's direction, Dun & Bradstreet has created a Blueprint for
Growth that will guide its transformation. The five components of the plan are
to leverage the D&B brand; create financial flexibility; enhance the current
business; become an important player in business-to-business e-commerce; and
build a winning culture.
LEVERAGING THE BRAND
D&B possesses a powerful brand built over its 159-year history as the
leader in business-to-business information services. The company manages the
world's most valuable commercial database with information on more than 60
million companies gathered in 209 countries. More than 150,000 customers
worldwide use the database to link information about suppliers, customers and
trading partners, providing a more complete picture of the risk and opportunity
in their business relationships.
"D&B has a powerhouse brand that cannot be replicated," Loren said. "Up
to now that brand has been underleveraged - we will change that. The D&B brand
is powerful in the physical world, and it will be even more important on the
Web. No other company is better able to provide business decisions over the Web
than D&B."
CREATING FINANCIAL FLEXIBILITY
As part of the blueprint for growth, the company has announced plans to
reallocate $100 million in current spending to invest in growth initiatives as
well as to support earnings growth.
"We've identified many ways to create the financial flexibility needed
to invest in our future and deliver consistent financial results," Loren
observed. "This transformation will enable us to maximize productivity and
efficiency and to be focused, decisive and responsive to customer needs."
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The financial flexibility program has these key components:
- - Administrative functions will be globalized to gain efficiencies.
- - Data collection and fulfillment activities will be streamlined to enhance
data coverage and quality. Call centers will be consolidated and collection
and fulfillment processes will be automated on the Web.
- - Sales and marketing functions will be rationalized. Overlapping marketing
functions will be eliminated and the product set will be rationalized.
- - The technology function will be simplified and consolidated to maximize
effectiveness. Data centers will be consolidated, overlapping functions
will be eliminated, and an offshore development program will be continued.
The company will take a one-time charge of up to $100 million pre-tax in
the fourth quarter of 2000. The charge will be used principally to cover
severance costs.
ENHANCING THE CURRENT BUSINESS
D&B plans to use the financial flexibility to enhance areas of its
current business, primarily the small business marketplace and global accounts.
"We expect to significantly deepen our penetration in both of these
important segments and we will redirect our spending to capture these
opportunities," Loren remarked. "By 2003, we expect to increase revenue by $50
million in the small business market and by $25 million from deeper penetration
of global accounts."
BECOMING A SIGNIFICANT PLAYER IN B2B E-COMMERCE
Dun & Bradstreet will also make selective investments to build on its
position as a leader in business-to-business marketplace development. The
company will continue to partner with leading service providers and technology
companies to speed penetration of this market and build the capacity to operate
at scale.
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"We can bring to the Web a level of trust, confidence and global scope
that no competitor can match, which is why so many exchanges and technology
players want to partner with us," Loren commented. "I believe we're farther
along in this space than anyone. We will continue to make selective investments
that will enable us to capture the opportunities that are just now evolving on
the Web."
ABOUT THE DUN & BRADSTREET CORPORATION
The Dun & Bradstreet Corporation (NYSE:DNB) is the most trusted source for the
information companies need to make their business a success. D&B is the world's
leading provider of business-to-business credit, marketing, and purchasing
information and receivables management services. Companies of all sizes use D&B
data to evaluate business opportunities with confidence and execute transactions
at the speed of e-business. Dun & Bradstreet, based in Murray Hill, N.J.,
operates in 37 countries. Additional information about Dun & Bradstreet is
available at www.dnb.com.
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Certain statements in this press release are forward-looking. These may be
identified by the use of forward-looking words or phrases, such as "expect,"
"will" and "plans," among others. All such forward-looking statements are based
on the company's reasonable expectations at the time they are made. The Private
Securities Litigation Reform Act of 1995 provides a "safe harbor" for such
forward-looking statements. In order to comply with the terms of the safe
harbor, the company notes that a variety of factors could cause New D&B's actual
results and experience to differ materially from the anticipated results or
other expectations expressed in such forward-looking statements. The risks and
uncertainties that may affect the operations, performance, development and
results of New D&B's businesses include: (1) complexity and uncertainty
regarding the development of new high-technology products; (2) possible loss of
market share through competition; (3) introduction of competing products or
technologies by other companies; (4) pricing pressures from competitors and/or
customers; (5) changes in the business information and risk management
industries and markets, including those driven by the Internet; (6) New D&B's
ability to protect proprietary information and technology or to obtain necessary
licenses on commercially reasonable terms; (7) New D&B's ability to complete the
implementation of its Euro plans on a timely basis and the competitive
implications that the conversion to the Euro may have on New D&B's pricing and
marketing strategies; (8) New D&B's ability to attract and retain key employees;
(9) fluctuations in foreign currency exchange rates; (10) the outcome of any
reviews by applicable tax authorities of company-related global tax planning
initiatives; (11) New D&B's ability to successfully implement its Blueprint for
Growth (its announced plan for the future development of its businesses) and to
achieve its goals with respect to improvements in operating results; and (12)
the absence of any adverse impact on the conduct of New D&B's business arising
from its recently-completed separation from Moody's Corporation. The company
undertakes no obligations to publicly release any revision to any
forward-looking statement to reflect any future events or circumstances.