Earnings: Thomson Reuters Revs Up 12 Percent; Sees $1 Billion In '08 Cost Savings

This story was written by Joseph Weisenthal.
For its first quarter after the merger, Thomson (NYSE: TOC) Reuters (NSDQ: RTRSY) reported Q1 revenue of $3.3 billion a 12 percent year-over-year increase. Net income decline to $192 million ($.30 per share) from $223 million ($.35 per share), although the quarter was affected by various one-time costs. On a pro-forma basis, so making several adjustments to the numbers, the company said that operating profit grew 37 percent to $579 million. Looking at each separately, Thomson revenue grew 10 percent to $1.8 billion, while Reuters grew 13 percent to $1.4 billion key highlights:

-- The markets division, consisting of various offerings to the financial industry, grew revenue by 11 percent. Within that unit, media revenue was up 12 percent to $91 million.
-- The company expects that the merger will produce $1 billion in cost savings for 2008, which is ahead of schedule, and that it will save another $1.2 billion in 2009 from the deal.
-- For the year, it expects 6 to 8 percent revenue growth.

Release | Webcast (10:00 AM ET) | Slides

By Joseph Weisenthal

Popular on CBS News


Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Watch Now

New Android App

For your Android phone and tablet, download the FREE redesigned app, featuring CBSN, live 24/7 news.