Thomson Reuters swings to loss on restructuring

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06:24 AM May 1st, 2013

May 1st, 2013 06:24 AM

NEW YORK—Media and financial information group Thomson Reuters swung to a loss in the first quarter, hit by costs linked to a major restructuring and one-time tax charges.

In results released Tuesday the company, which operates the Reuters news agency as well as financial and legal information services, said the quarterly loss was $31 million, compared with a profit of $294 million a year earlier.

The main factor in the loss was a $235 million tax charge that stems from Thomson Reuters’ action that “simplifies and consolidates technology and content assets in order to achieve greater efficiencies.”

Thomson Reuters said in February it was slashing 2,500 jobs, mostly in its financial information unit, which will result in a charge of $78 million.

“The first-quarter performance was consistent with our full-year expectations and I am pleased with the positive trajectory of the business as we begin the year,” said James Smith, chief executive officer.

“We are executing more effectively, launching better products, simplifying our systems and processes and managing with more rigor and discipline, which is why our confidence continues to build and we can affirm our full-year 2013 outlook.”

Excluding special items, the company said its quarterly adjusted profit amounted to 38 cents a share.

Revenues fell 4 percent from the same period a year ago to $3.18 billion.

The news operations at Reuters represented just $81 million in revenues, down 1 percent from last year.

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