Thomson Reuters Reports Full-Year and Fourth-Quarter 2010 Results
(Press Release) NEW YORK, NY, (February 10, 2011)—Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, today reported results for the full year and fourth quarter ended December 31, 2010. The company reported revenues of $13.1 billion, up 1 percent from the prior-year period, and underlying operating profit margin of 19.6 percent (20.0 percent before currency and acquisitions). Underlying operating profit declined 7 percent compared to the prior-year period due to investments in new product launches, acquisitions and the impact of currency.
Full-year adjusted earnings per share was $1.76 ($1.78 before currency), compared to $1.85 in 2009. Adjusted earnings per share for the fourth quarter was $0.43 (no currency impact), compared to $0.44 in the prior-year period.
Integration and legacy savings programs reached $1.4 billion in run-rate savings in 2010 and are now expected to reach $1.7 billion (up $100 million) by the end of 2011 when completed. Underlying free cash flow for the year was $2.0 billion, substantially unchanged from the prior-year period, driven primarily by operating profit flow-through and effective working capital management.
"2010 was a year of execution and delivery for us. We released new flagship products, including WestlawNext, Thomson Reuters Eikon and Thomson Reuters Elektron, and returned the company to growth," said Thomas H. Glocer, chief executive officer of Thomson Reuters.
"With this period of heavy investment now successfully completed and our markets improving, we have set our sights on accelerating growth and delivering strong returns on our investments. We have targeted mid-single digit revenue growth for 2011, accompanied by strongly expanding margins and increasing levels of free cash flow."
Today, the company announced its intention to sell its BARBRI legal education business and its Scandinavian Legal and Tax & Accounting businesses, both of which are expected to close in the first half of 2011. As these businesses were managed by the company for the full year 2010 and were included as part of the 2010 business outlook, they are included in the full-year and fourth-quarter 2010 results.