Pearson warns of falling earnings in 2014 after US education slowdown
Publishing company Pearson has reported a fall in profit before tax of two per cent to £382m in its preliminary results for 2013. Adjusted earnings per share also fell by 15 per cent from 82.6p to 70.1p.
However, sales at CER climbed two per cent to £5.2bn, while the company experienced growth in emerging markets.
John Fallon, chief executive commented:
We are in the middle of what we believe will be a short, but difficult, transition – one that through our combined investment and restructuring programs will drive a leaner, more cash generative, faster growing business from 2015.
We are uniquely positioned to tackle some of the biggest challenges in global education including the transforming power of technology. I am particularly excited about the significant opportunity digital education offers for Pearson and the next generation of learners.
The company warned of lower earnings for 2014 due to a slowdown in the US education market.
Pearson expects to spend approximately £50m on restructuring and a further £50m on investment in growth opportunities in digital, services and emerging markets.