LONDON--Pearson PLC (PSON.LN) Friday confirmed its guidance for
the full year as the U.K.-based publisher and education specialist
swung to a first-half profit even as sales fell.
Pearson posted net profit of 227 million pounds ($385.8) million
in the six months to June 30, from a net loss of GBP8 million in
the same period last year when its earnings were hit by
discontinued operations. Sales fell 6.5% to GBP2.047 billion.
"Overall, we are sustaining a good competitive performance
through a period of change and are powering ahead in digital,
services and emerging markets which enable us to reiterate our
guidance for 2014," said Chief Executive John Fallon.
Adjusted operating profit fell to GBP73 million from GBP124
million last year. The company cited restructuring charges,
currency movements, and an increased weighting of sales towards the
second half.
The company, which publishes the salmon-colored Financial Times
newspaper, said it expects the strengthening pound to reduce
full-year earnings by about one pence per share as it predicted
full-year adjusted earnings of between 62 pence and 67 pence per
share.
Pearson makes more than three-quarters of its revenue from
education, including textbooks and software for teachers and
students in schools and higher education, with 60% of total company
sales coming from North America.
The world's largest publisher of educational materials is
accelerating the shift of its education businesses to emerging
economies and prioritizing digital content, software and services
over print-based publishing.
Write to Simon Zekaria at simon.zekaria@wsj.com
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