LONDON--Pearson PLC (PSON.LN) Wednesday warned that its
full-year operating profit is expected to be lower, even as sales
grew for the U.K. publisher and education specialist as it pushes
harder into the world's high-growth markets.
Pearson, which generates about 60% of its revenue in North
America, said its fiscal 2013 adjusted operating profit before
restructuring charges will be affected by changes to accounting of
its publishing joint venture Penguin Random House and weak market
conditions for college textbooks in North America.
It reiterated it expects to report fiscal-year adjusted earnings
per share, excluding restructuring costs, to be broadly flat
year-on-year.
Nine-month sales rose 4% at constant exchange rates, compared
with 5% growth in both the same period last year and first half.
Penguin sales are no longer included in group performance. Net
profit and absolute figures were not disclosed.
The company, which also has high-profile consumer titles such as
the Financial Times newspaper and book publisher Penguin, said
international education showed "good growth", as well as a
"resilient" performance from FT Group and North American
education.
"Market conditions remain strong in digital, services and
emerging markets, but are more challenging in some of our largest
textbook publishing markets," said Pearson Chief Executive John
Fallon.
Pearson, booking gross restructuring costs of approximately
GBP150 million ($240.7 million) in 2013, is spending to accelerate
the shift of its education businesses to emerging economies and
prioritize digital content, software and services over print-based
publishing.
Following completion of the Penguin Random House merger on 1
July Pearson consolidates its share of Penguin Random House's
post-tax profit into Pearson's operating profit. Previously,
Penguin's operating profit was reported before tax.
Pearson shares closed Tuesday at 1365 pence, valuing the company
at GBP11.2 billion. The stock has risen 14.9% in the year to
date.
Write to Simon Zekaria at simon.zekaria@wsj.com
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