Strong trading at Pearson

Pearson, the educational publisher, announced today that third quarter trading was strong. Underlying sales rose 6%, operating profits rose 20% and headline sales rose 4% over the first 9 months of 2007.

The third quarter is vital for companies such as Pearson as the start of the school year drives textbook sales.

Pearson, which also publishes Penguin books and the Financial Times, increased its full-year sales growth guidance within its professional education unit to 8-10%, previously 5-7%. The unit’s sales increased 12% in the 9 months and Pearson said further margin improvement is expected.

In a statement, Marjorie Scardino, Chief Executive, said there is still a lot of trading ahead, but all parts of the company are doing well.

Ms Scardino added that the company was benefiting from rapid take-up of its learning technologies, increases in audience and advertising at the Financial Times and efficiency gains within Penguin.

Underlying education sales increased 7% over the first 9 months of the year and the publisher is anticipating full-year schools sales growth around the top end of its 4-6% range with further margin improvements even after restructuring costs.

In its FT publishing arm, sales rose 8% and advertising revenues had stayed strong during the recent turmoil in global financial markets.

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