Pearson Sales Rise; CFO Robin Freestone to Depart

By Simon Zekaria

LONDON--Pearson PLC (PSON.LN) Friday said its chief financial officer, Robin Freestone, is stepping down before the end of next year, as it reiterated its full-year guidance on higher sales.

The U.K.-based publisher and education specialist said earnings per share before exceptional items is expected between 62 pence and 67 pence in 2014. Nine-month sales rose 1% at constant exchange rates, it added.

Sales in North America on the same basis rose 2%. Profit figures weren't disclosed.

The company said it is booking restructuring costs of approximately 50 million pounds ($80 million) in 2014, returning to "normal levels" of restructuring in 2015.

"We are performing well competitively through a period of change and in difficult markets. We still expect those markets to start to stabilize next year and then return to growth in future years," said Chief Executive John Fallon.

Pearson, which generates about 60% of its revenue in the U.S., is restructuring to sharpen its focus on higher-growth economies.

Pearson is a major player in North America's education industry, publishing school textbooks and producing educational software for teachers and pupils. However, the business, particularly in the more-profitable college sector, is under pressure from digital schoolbooks, online learning and tablet computers.

The company also owns high-profile consumer titles such as the Financial Times newspaper.

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

Mr. Freestone, who said he would like to step down before the end of 2015 to explore a range of other interests, joined Pearson in 2004 as deputy chief financial officer and became chief financial officer in June 2006.

"I feel that eight years as CFO is long enough for anyone to play this type of role. I am focused now on delivering our financial commitments in 2014 and developing our 2015 plans, supporting Pearson and my board colleagues in their search for a successor, and facilitating the arrival and induction of that person. After that I look forward to beginning a new phase of my career," Mr Freestone said in a statement.

Pearson shares closed Thursday at 1169 pence, valuing the company at GBP9.58 billion.

Write to Simon Zekaria at [e-mail]

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