Correction to Pearson 2017 Results Article

By FeaturesDow Jones Newswires

Pearson PLC (PSON.LN) said Wednesday that full-year results will be at the upper end of its guidance and that its effective tax remains unchanged between 20% and 22% following tax reform in the U.S.

The education publisher said it also expects to have a small, one-off deferred tax charge in 2017.

Continue Reading Below

The tax law passed by U.S. Congress late last year and signed by President Donald Trump on Dec. 22 includes a reduction of the corporate-tax rate to 21% from 35% and limits on the deductibility of corporate interest payments.

Pearson said it expects to report adjusted operating profit of between 600 million pounds ($826.1 million) and GBP605 million for 2017, which is at the upper end of its October 2017 guidance range of between GBP576 million and GBP606 million. At average effective exchange rates, Pearson expects to report adjusted operating profit between GBP570 million and GBP575 million.

Adjusted earnings per share is anticipated to be between 53.50 pence and 54.50 pence, which is also above the October 2017 guidance range of between 49 pence and 52 pence.

In 2017, underlying revenue fell 2% in line with expectations as North America revenue fell 4%. Pearson said sales for U.S. higher education courseware fell 3% on an underlying basis, which was in line with the lower end of its guidance range.

Write to Maryam Cockar at maryam.cockar@dowjones.com

Corrections & Amplifications

Story corrected at 0758 GMT. Original incorrectly referred to the revenue fall as for nine months in the last paragraph. The revenue fall was for the year ended Dec. 31, 2017.

Underlying revenue for 2017 fell 2%, in line with that for the first nine months. "Pearson 2017 Results to Be at Upper End of Guidance; Tax Rate to Remain Unchanged," at 0730 GMT and the flash headline "Pearson: Underlying Revenue Fell 2% in Nine-months of 2017" at 0705 GMT incorrectly referred to the revenue fall as for nine months. The revenue fall was for the year ended Dec. 31, 2017.

(END) Dow Jones Newswires

January 17, 2018 04:12 ET (09:12 GMT)

Continue Reading Below