PSO Pearson Plc

By Razak Musah Baba

LONDON--Pearson PLC (PSON.LN) Monday reaffirmed its 2016 targets and 2018 goals, despite recording a 7% decline in underlying sales during the first nine months of the year.

Pearson said the sales during the period fell 7% in underlying terms, due to the expected declines in assessment revenue in the U.S. and U.K., but also declines in North American Higher Education courseware due to a further inventory correction by retailers in July and August, with trends improving from September.

The international media and education company added that those improving trends have continued into October.

Sales during the first nine months declined 3% in headline terms due to the strength of the U.S. dollar against the U.K. pound and declined 10% at constant exchange rates, the company said.

Pearson reiterated its 2016 guidance and said its 2018 goals are unchanged.

In June, during the company's half-year results announcement, the company said it expects to report adjusted operating profit before restructuring costs of between 580 million pounds ($706.7 million) and GBP620 million in 2016. It also said if current exchange rates persist until the end of 2016 the earnings per share guidance range will increase by approximately 4 pence.

Pearson expects to report at least GBP800 million in operating profit by 2018.

Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

October 17, 2016 02:40 ET (06:40 GMT)

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