Thomson Reuters 2Q profit up, stabilization seen

NEW YORK - Thomson Reuters Corp. said Thursday its second-quarter profit more than doubled from a year ago, helped by its 2008 acquisition of the Reuters news service.

In a call with analysts, CEO Tom Glocer said the company's customers — professionals such as lawyers and bankers — have seen their own businesses begin to stabilize.

"The global economy is still fragile, but things are no longer getting worse," he said, adding, "The outlines of the post-crisis reset world can begin to be seen."

The Toronto-based financial news and professional information provider earned $315 million, or 38 cents per share. That's up from $150 million, or 19 cents per share, a year earlier.

Assuming its $15.8 billion acquisition of Reuters on April 17, 2008, had been completed before the start of last year's quarter, adjusted earnings per share came to 58 cents, up from 39 cents.

That beats the 43 cents expected by analysts polled by the Thomson Reuters service.

Sales climbed 5 percent to $3.3 billion — in line with estimates — but fell 4 percent assuming the company had owned Reuters for the entire quarter last year. Sales were hurt by unfavorable foreign exchange rates. On a constant currency basis, revenue climbed 2 percent.

The company's professional division, which includes services for the legal, tax and health care professions, showed relative strength. Revenue in the unit grew 1 percent, or 4 percent after adjusting for currency fluctuations.

Although legal revenues continued to be weak, Glocer said layoffs that swept law firms during the first quarter have tapered off.

The markets division, which sells software and news services for traders, saw a 7 percent sales decline, or growth of 0.3 percent after currency adjustments.

Shares rose $1.56, or 4.8 percent, to close at $34.30.

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