Pearson warns on earnings hit from weak US demandThursday 23 January 2014 15.23
British publisher Pearson today warned that its 2013 earnings per share would be lower than expected due to higher restructuring costs and poor demand in its education business in North America during its key selling quarter.
Pearson is the education and media group which owns the Financial Times newspaper and runs education and testing businesses around the world.
It said it had been hit by lower underlying margins in its North American Higher Education business, particularly in the fourth quarter.
It now expects earnings per share after restructuring charges to be around 70 pence, compared with consensus forecasts of around 76 pence.
It said earnings on an adjusted basis before restructuring charges would be around 83 pence, which it said was in line with previous guidance.
Pearson's chief executive John Fallon said the group had made good progress but its trading had been weaker than expected, particularly in North America.
"With trading conditions still challenging in 2014, this further underlines the importance of the work we started in 2013 to reduce our established cost base and redirect our investment towards our biggest future growth opportunities," he said, in reference to digital sales and emerging markets.