Thomson Reuters turns corner on Financial & Risk sales
REUTERS - Thomson Reuters Corp (TRI.N)(TRI.TO) said on Tuesday that net sales in its Financial & Risk division turned positive for the first time since 2011.
The global news and information company reported that third- quarter ongoing revenue rose 2 percent before currency changes to $3.07 billion on strength in its Tax & Accounting and Legal businesses.
Excluding special items, the company reported a profit of 48 cents per share, beating Wall Street expectations by 4 cents.
The company said it planned to take a $350 million charge to accelerate a cost-saving strategy, primarily in the Financial & Risk division. It will eliminate about 3,000 positions.
Thomson Reuters Chief Executive Officer Jim Smith said in a statement that the company had sold more than 100,000 Eikon desktops to date.
"Though we continue to expect challenging conditions in the coming quarters - particularly with the largest global banks - these are significant steps in returning our financial business to a growth footing," he said.
Smith had said he expected net sales in the Financial & Risk division to turn positive in the second half of this year. Net sales, which strip out cancellations, are an important indicator because they lag revenue by about 12 months.
The company also announced plans to make contributions of about $500 million to its U.S. and UK defined benefit pension plans this quarter.
Operating profit for the third quarter was flat with a year earlier at $548 million before currency changes.
(Reporting by Jennifer Saba in New York; Editing by Jeffrey Benkoe and Lisa Von Ahn)
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