Publisher Pearson expects 2004 earnings at the lower end of expectations after a tough holiday season for its Penguin unit, even as its Financial Times newspaper broke even for the first time in 10 quarters.
Pearson forecast adjusted earnings of about 30 pence per share. Analysts on average expect earnings of 30.9p, with estimates ranging from 29.6-32p, according to a poll of 19 brokerages by Reuters Research.
The Pearson Education unit and FT Group, which also includes France's Les Echos, performed in line with its expectations, but Penguin suffered amid tough trading conditions in the holiday season, particularly in US mass market and backlist titles, the group said in a trading statement today.
The Financial Times, which has been hampered by anaemic spending in financial and technology advertising, broke even in the fourth quarter - the first period it has not posted a loss since the second quarter of 2002.
"We continue to expect a significant acceleration in our financial performance in 2005, driven by a strong outlook for our education business," the company said.
Pearson, which makes about two-thirds of its sales in the United States, said the weak dollar would reduce adjusted earnings per share by about 4p compared with 2003.
The company said it would support Dow Jones & Co.'s proposed acquisition of online financial news provider MarketWatch Inc, in which it owns a 25 percent stake. Pearson expects proceeds of about $100 million from the deal.