17th Nov 2005 07:01
Reed Elsevier PLC17 November 2005 News Release Issued on behalf of Reed Elsevier PLC and Reed Elsevier NV 17 November 2005 REED ELSEVIER PROVIDES UPDATE ON TRADING AND REAFFIRMS OVERALL FINANCIAL TARGETS Reed Elsevier today reaffirmed that it is on track to deliver on its targetsthis year of organic revenue growth of 5% and double digit growth in adjustedearnings per share at constant currencies. Trading performance in three of its four divisions is on track to deliver on or,in the case of LexisNexis, exceed individual divisional targets for organicrevenue growth, whilst Harcourt Education is now expected to fall short of itstarget of high single digit organic revenue growth. In scientific and medical markets, demand remains strong for scientific researchand medical information within a more supportive funding environmentparticularly for online product and in the expanding health professions. Inlegal markets, good demand growth is being seen for online productivity toolsand practice solutions, and in international online expansion and riskmanagement. In education markets, strong growth in the US K-12 basal business,driven by success in an expanded state textbook adoptions market, is in largepart offset by weak supplemental and international markets and a disappointingsales performance in supplemental and assessment. In business to businessmarkets, continuing improvement in demand is seen particularly for onlineservices and exhibitions. The performance trends in Reed Elsevier's businesses are as follows: Elsevier is performing well, with strong subscription renewals, growing onlinesales and a successful second half medical book publishing programme. Elseviercontinues to target 5% organic revenue growth for the year. The renewals processfor 2006 subscriptions is progressing well, and the integration of the MediMediaMAP businesses acquired in August is on track. LexisNexis continues to show good growth with strong demand for onlineinformation and workflow tools in North American and International legalmarkets. US corporate and federal markets continue to see recovery in onlinenews and business, higher volumes of patent applications and strong demand inrisk management, with Seisint on track to deliver the targeted 20% year on yearsales growth. LexisNexis is now expected to deliver organic revenue growth of 6%this year before taking into account the faster growth at Seisint. Harcourt Education, in its US basal business, is performing well in a strongstate textbook adoptions market despite slow implementation in Texas. Harcourtis taking the leading share in new textbook adoptions in the core curriculumsubjects. However, in the last two months, it is seeing significant weakness inits supplemental and assessment businesses. The shortfalls are due to a sharpfall-off in backlist sales and much slower than expected demand for newproducts, with a cut back on uncommitted spending by schools. Sales shortfallsin these businesses are not likely to be recovered this year, and, givencontinuation of current trends, low organic revenue growth is now expected,against the high single digit growth targeted. Reed Business continues to see improvement overall in its markets, withparticularly strong demand for online services and recovery in exhibitionsmarkets, whilst print advertising remains variable by geography and sector, inpart reflecting migration to strongly growing online services. The second halfis seeing good performances from biennial exhibitions cycling in. Reed Businesscontinues to target 4-5% organic revenue growth for the year. Commenting, Sir Crispin Davis, Chief Executive Officer, said: "Our business is performing well overall, with organic revenue growth buildingand margin expected to improve through continued cost efficiency. Theaccelerating performance of LexisNexis is particularly pleasing. While growththis year in the Harcourt supplemental and testing businesses will be lower thanexpected, we remain confident in the longer term prospects of the educationmarket and our business. "With continuing revenue growth momentum in our markets and in our business andongoing cost efficiency, as well as growing returns from investment, we areagain targeting to deliver next year organic revenue growth of at least 5% anddouble digit growth in adjusted earnings per share at constant currencies." This announcement contains forward looking statements within the meaning ofSection 27A of the US Securities Act 1933, as amended, and Section 21E of the USSecurities Exchange Act 1934, as amended. These statements are subject to anumber of risks and uncertainties and actual results, and events could differmaterially from those currently being anticipated as reflected in such forwardlooking statements. The terms "expect", "should be", "will be" and similarexpressions identify forward looking statements. Factors which may cause futureoutcomes to differ from those foreseen in forward looking statements include,but are not limited to: general economic conditions in Reed Elsevier's markets;exchange rate fluctuations; customers' acceptance of our products and services;the actions of competitors; legislative, fiscal and regulatory developments;changes in law and legal interpretations affecting Reed Elsevier's intellectualproperty rights and internet communications; and the impact of technologicalchange. - ends -Enquiries Sybella Stanley Tel: +44 (0) 20 7166 5630(Investors) Patrick Kerr Tel: +44 (0) 20 7166 5646(Media) Notes to editors Reed Elsevier Group plc Reed Elsevier Group plc is a world leading publisher and information provider.It is owned equally by its two parent companies, Reed Elsevier PLC and ReedElsevier NV. The parent companies are listed on the London, Amsterdam and NewYork Stock Exchanges, under the following ticker symbols: London: REL;Amsterdam: REN; New York: RUK and ENL. The group employs 35,600 people,including approximately 20,000 in North America. Operating in the scientific,legal, educational and business-to-business sectors, Reed Elsevier provides highvalue and flexible information solutions to professional end users, withincreasing emphasis on internet delivery. For further information, please visitthe company website www.reedelsevier.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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