Pearson Upbeat As Sales Rise

LONDON--Pearson PLC (PSON.LN) said Friday it made a solid start to the year as the U.K.-based publisher and education specialist posted a rise in first-quarter sales.

The company said sales in the first three months of the year, excluding those of book publisher Penguin Random House and company news provider Mergermarket, rose 2% at constant exchange rates to 900 million pounds ($1.51 billion). On a reported basis, sales fell 6% due to the strength of sterling against the U.S. dollar and emerging market currencies.

The U.K.-based group, which said it was trading in line with expectations, didn't disclose profit figures.

"Pearson has had a solid start to the year," said Chief Executive John Fallon.

Pearson reiterated its guidance. At the end of February, the owner of the Financial Times newspaper issued a profit warning amid continuing weakness in its core U.S. education business. The group expects its adjusted earnings per share for 2014, after restructuring costs, would decline to between 62 pence and 67 pence at current exchange rates, from 70.1 pence.

Pearson makes more than three-quarters of its revenue from education, including textbooks and software for teachers and students in schools and higher education, with 60% of total group sales coming from North America.

Pearson shares closed Thursday at 1,050 pence, valuing the company at GBP8.6 billion. The stock has fallen 22% in the year to date.

News Corp. (NWS) which owns Dow Jones & Co., publisher of The Wall Street Journal, competes with Pearson's publishing, business-news and education divisions.

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