Revenues increase 11%; organic revenue up 6% Operating profit grows 15%; operating profit margin increases in all segments Diluted EPS increases to $0.58, from $0.26 a year ago Proposed acquisition of Reuters progressing
The Thomson Corporation, one of the world’s leading providers of electronic solutions, software and services to business and professional customers, today reported that revenues for the second quarter of 2007 increased 11%, to $1.8 billion, and operating profit increased 15%, to $355 million. Diluted earnings per share increased to $0.58 in the second quarter, from $0.26 in the year-ago period.
“We took significant strategic steps this quarter to strengthen Thomson’s position for the long term, while driving the business and achieving strong financial results,” said Richard J. Harrington, Thomson President and Chief Executive Officer. “We announced our intention to acquire Reuters, seizing the opportunity to strengthen our position as the premier information provider to professionals in the commercial centers of the world, and we signed agreements to sell the bulk of our Thomson Learning assets for proceeds of approximately $8.5 billion. We are very pleased with the steps we’ve taken and the opportunity they present to enhance the growth profile of Thomson and create significant value for shareholders.
“Moreover, we continued to drive our business forward in the quarter. Our financial performance reflects our successful strategy to build essential workflow solutions for our business and professional customers, and our ability to leverage technology platforms across the company to drive growth and profitability.
“Building on a solid start to the year, the business continued to gain momentum in the second quarter. We achieved solid growth in revenues, operating profit, margins, and earnings. Organic revenue was up 6%, led by our Legal and Tax & Accounting business segments.
“We also continued to make significant progress driving operational efficiencies throughout our company, resulting in a 15% increase in operating profit. Our success was reflected in substantial increases in operating profit margins in each of our business segments, which included the benefits of our THOMSONplus initiatives. THOMSONplus remains on track to generate run-rate savings of $150 million by the end of 2008,” said Mr. Harrington.