25th Apr 2008 07:00
Pearson PLC25 April 2008 25 April 2008 PEARSON AGM, TRADING UPDATE AND BOARD APPOINTMENTS Pearson is today providing a trading update and announcing two boardappointments at its Annual General Meeting. Trading update Pearson has made a good start to 2008. Our strong momentum has continued and weare trading in line with the expectations we set out in our preliminary resultsannouncement on March 3. In Education, we continue to expect another year of good profit growth. In theUS we are seeing healthy demand for instructional materials and educationalservices and our businesses are performing well competitively, benefiting fromour consistent investment in content, services and technology. The integrationof the Harcourt Assessment business is on track and EnVision Math, our newintegrated print-and-digital elementary maths programme, has made a very goodstart in the major new adoptions this year. Outside the US our educationbusinesses are continuing to perform well with strong publishing programmes, newdigital services and the contribution of the Harcourt international educationbusinesses. At the Financial Times Group, we expect continued profit growth this year. FTPublishing is showing sustained growth in subscription, circulation andadvertising revenues. The Financial Times was recently named Newspaper of theYear at the British Press Awards and Mergermarket's strong trading momentumcontinues, supported by high renewal rates on subscriptions. Interactive Datayesterday reported strong revenue and profit growth in the first quarter, withcontinued high renewal rates and healthy new business momentum, and maintainedits full-year guidance. Penguin has made a strong start to the year and is on track to achieve doubledigit profit margins in 2008. First-half publishing highlights include EckhartTolle's A New Earth (picked for Oprah Winfrey's Book Club), Junot Diaz's TheBrief Wondrous Life of Oscar Wao (awarded the Pulitzer Prize for Fiction) andSebastian Faulks' forthcoming James Bond novel Devil May Care, celebrating thecentenary of Ian Fleming's birth. Marjorie Scardino, chief executive, said: "Most of our trading lies ahead of us,but the start we've made to the year makes us confident that this will beanother good one for Pearson. Our strategy, and the changes we've made toaccelerate it, produced record results last year and made Pearson a moreresilient company. We expect another year of good earnings growth, even in thesemore uncertain economic conditions." Board appointments Pearson is also announcing today the board appointments of CK Prahalad as anon-executive director and Will Ethridge as an executive director, botheffective on 1 May 2008. Coimbatore Krishnarao ('CK') Prahalad is the Paul and Ruth McCrackenDistinguished University Professor of Corporate Strategy at the University ofMichigan Ross School of Business. He is a specialist in corporate strategy andthe author of a number of bestselling business books including Competing for theFuture (with Gary Hamel), The Future of Competition (with Venkratram Ramaswamy)and The Fortune at the Bottom of the Pyramid: Eradicating Poverty throughProfits. His latest book, The New Age of Innovation (with MS Krishnan), will bereleased in May 2008. Will Ethridge joined Pearson in 1998 following the Simon & Schuster educationacquisition and was appointed chief executive of the US Higher Education andProfessional Group. In 2003 his responsibilities were expanded when he becamechief executive of Pearson's Higher Education, International and Professionalpublishing. In March 2008 he was appointed to a new role as chief executive ofPearson's North American education business, spanning School, Higher Educationand Professional publishing, assessment, technology and services. North Americaneducation is Pearson's largest division with approximately $3.5bn of sales in2007. He also serves as vice chairman of the Association of American Publishers(AAP). Also in March 2008, John Fallon was appointed chief executive of Pearson'sInternational education businesses, reporting to Marjorie Scardino and joiningthe Pearson Management Committee. Glen Moreno, chairman, said: "CK and Will are valuable additions to our Board.They will bring their very considerable knowledge and experience to ourdiscussions on education, emerging economies and technology, which are allcentral to Pearson's long-term growth strategy." Pearson's AGM takes place today at the Queen Elizabeth II Conference Centre,Broad Sanctuary, London SW1P 3EE at 12 noon. ENDS For more information: Luke Swanson/ Simon Mays-Smith/ Charles Goldsmith + 44 (0) 20 7010 2310 Forward looking statements Except for the historical information contained herein, the matters discussed inthis statement include forward-looking statements. In particular, all statementsthat express forecasts, expectations and projections with respect to futurematters, including trends in results of operations, margins, growth rates,overall market trends, the impact of interest or exchange rates, theavailability of financing, anticipated costs savings and synergies and theexecution of Pearson's strategy, are forward looking statements. By theirnature, forward looking statements involve risks and uncertainties because theyrelate to events and depend on circumstances that will occur in future. Thereare a number of factors which could cause actual results and developments todiffer materially from those expressed or implied by these forward lookingstatements, including a number of factors outside Pearson's control. Theseinclude international, national and local conditions, as well as competition.They also include other risks detailed from time to time in the company'spublicly-filed documents. Any forward looking statements speak only as of thedate they are made, and Pearson gives no undertaking to update forward-lookingstatements to reflect any changes in its expectations with regard thereto or anychanges to events, conditions or circumstances on which any such statement isbased. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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