Thomson undergoes major revamp

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Canadian business information provider Thomson Corp. is revamping its organizational structure and selling the educational division, Thomson Learning, which provides one-quarter of its revenue.

Thomson, formally based in Toronto but with its operational head office in Stamford, Connecticut, and its accounts in U.S. dollars, also said Thursday its third-quarter net income increased 35 percent from a year earlier to $419 million (€331 million).

Revenue increased 5 percent to $2.43 billion (€1.92 billion), with organic growth of 3 percent across Thomson's businesses and the rest from acquisitions.

The impending sale of Thomson Learning, estimated to be worth $5 billion (€3.95 billion) or more, will "clarify our strategy and represent the final step in our transition from a print-based publisher to a provider of workflow solutions to business and professional markets," CEO Richard Harrington told a conference call.

"Thomson Learning, though successful, is not a workflow solutions business and its current business model produces the lowest growth and returns of our portfolio," he said.

The division, whose businesses include textbook publishing and production of educational tests as well as online learning, generates "negligible" sales from electronic databases and services, Harrington said, while over 60 percent of Thomson's other business comes from so-called workflow solutions.

Thomson is restructuring itself into six groups: North American legal, International legal and regulatory, tax and accounting, financial, scientific, and healthcare.

This replaces the previous four segments: regulatory, learning, financial, and scientific and healthcare.

Thomson has made a deal to sell Thomson Learning's NETg corporate training unit to SkillSoft PLC for US$285 million (€225.24 million), and competitive bidding for the rest of Thomson Learning will begin early in 2007, with full divestment expected by the end of next year.

The $419 million (€331 million) third-quarter net profit was worth 65 cents per share, up from $309 million (€244 million) or 47 cents per share in the year-earlier period.

Quarterly revenue increased 5 percent to $2.43 billion (€1.92 billion) from $2.30 billion (€1.82 billion), and operating profit rose 6 percent to $549 million (€434 million) despite higher corporate expenses including $13 million (€10.3 million) arising from the previously announced Thomson Plus cost-cutting initiative.

New efficiency measures include a global finance back-office center in Hyderabad, India.

TORONTO Canadian business information provider Thomson Corp. is revamping its organizational structure and selling the educational division, Thomson Learning, which provides one-quarter of its revenue.

Thomson, formally based in Toronto but with its operational head office in Stamford, Connecticut, and its accounts in U.S. dollars, also said Thursday its third-quarter net income increased 35 percent from a year earlier to $419 million (€331 million).

Revenue increased 5 percent to $2.43 billion (€1.92 billion), with organic growth of 3 percent across Thomson's businesses and the rest from acquisitions.

The impending sale of Thomson Learning, estimated to be worth $5 billion (€3.95 billion) or more, will "clarify our strategy and represent the final step in our transition from a print-based publisher to a provider of workflow solutions to business and professional markets," CEO Richard Harrington told a conference call.

"Thomson Learning, though successful, is not a workflow solutions business and its current business model produces the lowest growth and returns of our portfolio," he said.

The division, whose businesses include textbook publishing and production of educational tests as well as online learning, generates "negligible" sales from electronic databases and services, Harrington said, while over 60 percent of Thomson's other business comes from so-called workflow solutions.

Thomson is restructuring itself into six groups: North American legal, International legal and regulatory, tax and accounting, financial, scientific, and healthcare.

This replaces the previous four segments: regulatory, learning, financial, and scientific and healthcare.

Thomson has made a deal to sell Thomson Learning's NETg corporate training unit to SkillSoft PLC for US$285 million (€225.24 million), and competitive bidding for the rest of Thomson Learning will begin early in 2007, with full divestment expected by the end of next year.

The $419 million (€331 million) third-quarter net profit was worth 65 cents per share, up from $309 million (€244 million) or 47 cents per share in the year-earlier period.

Quarterly revenue increased 5 percent to $2.43 billion (€1.92 billion) from $2.30 billion (€1.82 billion), and operating profit rose 6 percent to $549 million (€434 million) despite higher corporate expenses including $13 million (€10.3 million) arising from the previously announced Thomson Plus cost-cutting initiative.

New efficiency measures include a global finance back-office center in Hyderabad, India.

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