Tough 2013 For Pearson Education

In January Pearson provided a regular trading update and on February 28, 2014 it will announce preliminary results for 2013.

While overall the company expects an operating profit of approximately £865m they had “lower underlying margins in North American Higher Education, particularly in the important fourth quarter.”

Pearson CEO John Fallon said, “Our North American education business faced a tough trading environment throughout 2013, driven by state budget pressures and the transition to the Common Core (affecting our School business) and lower enrolements (affecting Higher Education). The career college sector, in which we have a strong market position, was particularly weak. In addition to these market pressures, our North American margins were further affected by planned investments in learning technologies and related infrastructure, Common Core programs, the launch costs related to major multi-year service-based contracts in higher education, and increased returns provisions.



“Our International education business achieved another strong underlying performance in emerging markets, particularly in South Africa and China, offset by weak textbook sales in developed markets and policy changes affecting qualifications and textbook publishing in the UK.

“Our Professional education business generated good sales growth at constant exchange rates with a strong performance in assessment and training partly offset by softness in publishing.”