21st Oct 2015 07:05
LONDON (Alliance News) - Pearson PLC Wednesday cut its earnings per share expectations for 2015 following its sale of its PowerSchool business, the FT Group and stake in The Economist Group, as well as continued challenging market conditions and currency movements.
Pearson had previously guided for earnings per share of between 75p and 80 pence, however, following these sales, as well as movements in exchange rates, this range is reduced by around 5p to between 70p to 75p.
What's more, due to continued challenging market conditions, Pearson said, it now expects adjusted earnings per share to be at the bottom of this range, assuming current exchange rates, no further acquisitions or sales, a tax rate of 15% and an interest charge of around GBP70 million.
For the third quarter of 2015 the company said its sales were down 2%, or 5% at constant exchange rates. This brings its sales growth for the first nine months to 2%, though sales were down 2% at constant exchange rates.
Pearson said its competitive performance had remained strong for the first nine months of the year, seeing share gains in US higher education courseware, US school courseware and UK qualifications.
"The key cyclical and policy-related factors which have been hurting our markets for some years have yet to improve. We are performing well competitively and gaining share across many areas of our business. We continue to manage our costs tightly while investing in new products and services to inspire the next generation of student," said Chief Executive John Fallon in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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