Led by a 24% revenue increase in its Learning group, total sales at Thomson Corp. rose 7% in 2002, to $7.76 billion. Operating profit was up 46%, to $1.22 billion, although earnings from continuing operations fell to $606 million from $684 million.
Revenue in the Learning group, which benefited from the 2001 acquisition of Harcourt's higher education and outplacement services, was $2.29 billion in 2002, and operating profit rose 34%, to $520 million. The group had solid gains in the higher education division both in the U.S. and internationally. Thomson titles outperformed the Harcourt list, but Thomson chief financial officer Bob Daleo said the company is "Thomsonizing" (adding more electronic components to) 179 titles acquired as part of the Harcourt deal, and he expects to see better results in 2003. The company said its Delmar division had a good year, but that its e-learning initiatives were hurt by the soft information technology market.
In the company's largest group, legal & regulatory, sales rose 4%, to $2.96 billion, and operating profit increased 8%, to $769 million. Increased global sales of online services and acquisitions helped spur the gain in the year. Westlaw's U.S. sales rose 5% in the year, and online sales now account for 60% of Westlaw's total revenue. The primary goal of 2003 is to manage the continuing migration of Westlaw sales from print/CD-ROM to online.
In Thomson's two other major segments, operating profits in the financial group fell 1%, to $249 million, on a 3% decline in revenue, to $1.54 billion. Sales in the scientific and health care segment rose 13%, to $780 million, and operating profit rose 19%, to $179 million.
Commenting on trends that cut across all businesses, Thomson said organic growth rose 2% in 2002, while sales to non—North America customers rose 12%. International revenue now accounts for 20% of total sales, and the company is looking to push that percentage higher. Thomson will also continue to pursue niche acquisitions in 2003; in 2002 the company spent $272 million on 31 acquisitions. Despite Thomson's various initiatives, company CEO Dick Harrington said that because of economic softness and market uncertainty, the company will not hit its goal of 7%—9% revenue growth in 2003.
