Europe Movers: Pearson Profit Falls 54%, VW Profit Surges 41%

Nigel Thomas
25 Feb, 2013
New York City

Pearson, the book and newspaper publisher said operating profit for the year plunged 54% and Royalty Pharma agreed to acquire Elan Corp for $6.5 billion. Volkswagen profit for the year surged 40.9%.

[R]2:00 PM Frankfurt – Pearson, the book and newspaper publisher said operating profit for the year plunged 54% and Royalty Pharma agreed to acquire Elan Corp for $6.5 billion. Volkswagen profit for the year surged 40.9%.[/R]

In London trading, FTSE 100 index gained 0.5% or 32 to 6,368 and in Frankfurt, the DAX index jumped 2.3% or 173.8 to 7,836. In Paris, CAC 40 index advanced 1.8% or 66.6 to 3,773.

Pearson plc declined 5.5% to 1,148.64 pence after the UK based media and education group reported sales for the year ending in December jumped 5% to £6.11 billion from £5.86 billion a year earlier.

Operating profit for the year plunged 54% to £515 million compared to £1.12 billion and basic earnings declined 66% to £40.5 from £119.6 a year ago.

The media company said digital and services businesses contributed 50% of sales and total adjusted operating profit slipped to £936 million from £942 million a year ago period.

Total US College enrolments were 2% lower in 2012 than the last year and student registrations at eCollege grew 3% to 8.7 million. In China, student enrolments at Wall Street English increased 15% to almost 61,000.

The company added North American education revenues rose 2% and international education revenues climbed 13% in the year. Financial Times Group revenues increased 4% and Penguin revenues rose 1%.

Pearson expects to flat 2013 operating profit and adjusted earnings per share.

RP Management LLC offered to buy Ireland based biotechn firm Elan Corp. for about $6.5 billion.

Volkswagen AG gained 0.5% to €157.15 after the German automobile maker said revenue for the fiscal year ending in December soared 20.9% to €192.7 billion from €159.3 billion from a year ago.

Profit for the year surged 40.9% to €21.7 billion compared to €15.4 billion from and earnings per share surged 40.2% to €46.42 from €33.10 a year ago period.

The group’s profit before tax climbed 35% to €25.5 billion and operating profit exceeded last year’s record €11.5 billion.