Publisher Pearson, owner of the Financial Times, said on Friday that net profits rallied last year, but gloomy forecasts and US woes sent its share price plunging.
Profits after taxation soared to £538 million last year, from £311 million in 2012, Pearson said in a results statement.
However, adjusted operating profit fell six percent to £871 million amid weak US sales.
And it forecast earnings per share will stand at between 62 pence and 67 pence this year, adding that pressures in its biggest markets were "expected to persist, impacting revenues and margins" in 2014.
Earnings per share meanwhile fell to 70.1 pence in 2013 from 82.6 pence a year earlier.
The news sent Pearson shares sliding 7.19 percent to 998.65 pence in morning deals on London's flat FTSE 100 index.
Pearson, which has widespread publishing interests notably in educational publishing, added that sales grew two percent to £5.18 billion, aided by its focus on digital learning and emerging markets.
The results were also hit by an accounting charge for the merger of the group's publishing interests under the Penguin brand, and the Random House brand of Germany's Bertelsmann.
"2013 profits (were) reduced by (the) accounting impact of the Penguin Random House merger, lower margins in North America, sustained investment, and revenue mix," the group said in the earnings release.
Pearson, which generates about 60 percent of its sales in North America, had already warned in January that 2013 profits would be hurt by weak sales across its US education business and restructuring charges.
"We are in the middle of what we believe will be a short, but difficult, transition -- one that through our combined investment and restructuring programs will drive a leaner, more cash generative, faster growing business from 2015," said chief executive John Fallon.
Publisher Pearson, owner of the Financial Times, said on Friday that net profits rallied last year, but gloomy forecasts and US woes sent its share price plunging.
Profits after taxation soared to £538 million last year, from £311 million in 2012, Pearson said in a results statement.
However, adjusted operating profit fell six percent to £871 million amid weak US sales.
And it forecast earnings per share will stand at between 62 pence and 67 pence this year, adding that pressures in its biggest markets were “expected to persist, impacting revenues and margins” in 2014.
Earnings per share meanwhile fell to 70.1 pence in 2013 from 82.6 pence a year earlier.
The news sent Pearson shares sliding 7.19 percent to 998.65 pence in morning deals on London’s flat FTSE 100 index.
Pearson, which has widespread publishing interests notably in educational publishing, added that sales grew two percent to £5.18 billion, aided by its focus on digital learning and emerging markets.
The results were also hit by an accounting charge for the merger of the group’s publishing interests under the Penguin brand, and the Random House brand of Germany’s Bertelsmann.
“2013 profits (were) reduced by (the) accounting impact of the Penguin Random House merger, lower margins in North America, sustained investment, and revenue mix,” the group said in the earnings release.
Pearson, which generates about 60 percent of its sales in North America, had already warned in January that 2013 profits would be hurt by weak sales across its US education business and restructuring charges.
“We are in the middle of what we believe will be a short, but difficult, transition — one that through our combined investment and restructuring programs will drive a leaner, more cash generative, faster growing business from 2015,” said chief executive John Fallon.
