Thomson Reuters Corp stated it expects revenue to rise in 2011 after stronger growth in the fourth quarter and more signs that its financial and professional customers are recovering from the recession.
Thomson Reuters (TSX / NYSE: TRI), the leading source of intelligent information for businesses and professionals, reported revenues of $13.1 billion, up 1% from the prior-year period, and underlying operating profit margin of 19.6% (20.0% before currency and acquisitions). Underlying operating profit declined 7% compared to the prior-year period due to investments in new product launches, acquisitions and the impact of currency.
Full-year adjusted earnings per share (EPS) was $1.76 ($1.78 before currency), compared to $1.85 in 2009. Adjusted EPS for the fourth quarter was $0.43 (no currency impact), compared to $0.44 in the prior-year period. Underlying operating profit margin was 19.6%, and included a 130 basis point impact from investments in new product launches and product mix and a 40 basis point impact from acquisitions and currency. Underlying operating profit declined 7% compared to the prior-year period due to the aforementioned items.
Adjusted EPS was $1.76 ($1.78 before currency) compared to $1.85 in 2009, including the results from planned disposals. Integration and legacy savings programs reached $1.4 billion in run-rate savings, and are expected to reach $1.7 billion by the end of 2011. Underlying free cash flow for the year was $2.0 billion, substantially unchanged from the prior-year period, driven primarily by operating profit flow-through and effective working capital management.
The company announced its intention to sell its BARBRI legal education business and its Scandinavian Legal and Tax & Accounting businesses, both of which are expected to close in the first half of 2011. Source: Thomson Reuters Earnings Report