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Pearson's shares slump following earnings, downbeat forecast

  • Pearson's (PSO) net profit increased to £538M ($899M) in 2013 from £311M in 2012.
  • However, adjusted operating profit fell 6% to £871M, as the company expected, hurt by weak demand in U.S. higher education and restructuring expenses.
  • Sales increased 2% to £5.18B, missing consensus of £5.8B.
  • Pearson expects pressures in its largest markets to continue, hurting revenue and margins. "We are in the middle of what we believe will be a short, but difficult, transition," says CEO John Fallon.
  • Pearson forecasts that 2014 EPS will drop to £0.62-0.67 from 70.1 pence in 2013.
  • Pearson proposed a 7% rise in its dividend to 48 pence a share.
  • Shares are -8.1% in London. (PR)
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