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Reed Elsevier Predicts Weak Sales, More Cuts

Bloomberg, Friday, February 19, 2010 12:16 AM

Reed Elsevier, the publisher of Variety, B&C magazines, forecast a lower profit margin after 2009 sales figures were announced. Full-year revenue excluding currency effects and acquisitions was $9.5 billion. Reed Elsevier forecast the rate of decline will slow and said weaker sales would lead to a "modest" reduction in adjusted operating margin. It also will mean cost efficiencies and cuts at Reed Business Information will continue.

Reed Elsevier, which has been in talks to sell dozens of U.S. trade magazines to individual publishers, said "late cycle effects" in 2009 will be particularly severe in the first half this year. The sale of the Reed Business Information unit was canceled in late 2008 because bids were too low. Reed Elsevier planned to use proceeds from selling the unit to repay debt on its $3.5 billion purchase of ChoicePoint Inc., a U.S.- based provider of data services to the insurance industry.

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earnings, magazines

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