Anglo-Dutch publisher Reed Elsevier posted a 2003 profit gain near the top of forecasts today but warned that earnings growth would slow in 2004 due to challenging markets for its products.
The company, which owns scientific and legal journals plus the Hollywood trade publication Variety, said pre-tax profit rose 9 per cent to £1.01 billion sterling ($1.9 billion) for the year to December 31st.
Analysts on average expected a pre-tax profit of £994.4 million, with estimates ranging from £976.5 million to £1.03 billion, according to a poll of 15 analysts by Reuters Research.
The company's forecasts for 2004 and 2005 "are as expected, but the good thing is there weren't any negative surprises there."
The company said its markets "continue to be challenged" by the difficult economic conditions of the past three years as well as low US textbook adoptions.
Reed Elsevier's science and medical business, as well as its LexisNexis legal unit, posted higher revenues and profits in 2003.
That offset a mixed performance at its Harcourt education business, which struggled due to the low level of textbook adoptions, and at its business division, which was hurt by the weak market for advertising and exhibitions.