Thomson Reuters earnings are knocked by cost of cutting jobs

 
Marion Dakers
FINANCIAL news and information service Thomson Reuters yesterday posted a seven per cent drop in adjusted operating profit, as charges linked to its cost cutting scheme offset revenue growth.

The firm posted $78m (£50m) in “severance expenses” as its plans to cut 2,500 jobs, and a tax charge of $235m.

These expenses helped pull earnings per share from $0.35 a year ago to a $0.04 per share loss in the first three months of the year.

Turnover from ongoing business was up two per cent at $3.1bn excluding currency movements, while adjusted operating profit fell to $462m.

The firm repeated its outlook for the year, however, forecasting low single digit revenue growth and an underlying profit margin of up to 17.5 per cent.

“The first-quarter performance was consistent with our full-year expectations and I am pleased with the positive trajectory of the business as we begin the year,” said James C Smith, chief executive of Thomson Reuters, in a statement yesterday.