Pearson Offers New Profit Warning

19 December 2001

Alongside its forecast of continuing woe for the ad sector [WAMN: 18-Dec-01], UK-headquartered publishing giant Pearson released a profit warning for the second time in as many months.

Pearson, which expects first-quarter ad revenues to be down year-on-year, cautioned that its education division would bring in about $49 million less in full-year profits than currently expected, though this will still be up 10% on 2000.

As revealed Tuesday, Pearson has run into difficulties in Latin America, where it needs to restructure, while its corporate training arm is also struggling. However, the forecast of a 40% fall in 2001 profits at the Financial Times Group, made when Pearson last lowered earnings estimates [WAMN: 17-Oct-01], remains unchanged.

The group’s internet activities are expected to lose some $84m in the second half, but are still expected to break even on target next year.

Preliminary results for the calendar year 2001 are due on March 4.

News source: AdAge Global