Publisher Reed Elsevier surprises with latest results

In a season of disappointing financial results, one company has managed to surpass expectations. Reed Elsevier Plc, the publisher of Variety and New Scientist magazines, said profit rose last year on higher sales for its LexisNexis database, and predicted growth for 2009.

Adjusted profit climbed to £1.38 billion ($2 billion), or 44.6 pence a share, from £1.14 billion, or 35.9 pence, a year earlier, the company said in a statement today. Analysts had predicted a profit of 41.7 pence a share. Revenue increased to £5.33 billion from £4.58 billion in 2007.

Reed Elsevier will pay a total dividend of 20.3 pence a share, up 12 per cent from a year earlier. The company said it will expand its restructuring plan to include Reed Business Information.

Adjusted profit at Reed Elsevier's LexisNexis unit rose 26 per cent to £513 million while profit on that basis at its exhibitions business rose 32 per cent to £183 million. Adjusted profit for the health and sciences unit rose 19 per cent to £568 million . A $290 million restructuring plan is on schedule and has been expanded by $60 million, the company said.

Reed Elsevier, which halted the sale of its trade-magazine unit in December after bids dropped amid frozen credit markets and a deepening recession, said it plans to focus in the next 12 to 18 months on repaying debt. Adjusted earnings, excluding currency swings, will increase this year, the company said.

''We've significantly reshaped our portfolio and we're entering 2009 with a resilient business and a strong financial business,'' outgoing CEO Crispin Davis said. "We will, however, see a decline in Reed Exhibitions and Reed Business Information, with demand for advertising and marketing services much more affected by the tougher economic environment.''