Thomson Reuters earnings fall on big writedown, but adjusted EPS up 46 per cent

NEW YORK, N.Y. - Information and media company Thomson Reuters (TSX:TRI) booked a US$2.57-billion fourth-quarter loss after taking a non-cash $3-billion writedown related to its financial services business.

The firm, which is based in New York but trades its shares on the Toronto Stock Exchange, said Thursday its loss amounted to $3.11 per share, compared to a profit of 27 cents per share in the same period a year earlier. Stripping out one-time items, however, the company said it earned an adjusted 54 cents per share, compared with 37 cent in the year-ago period.

Thomson Reuters, which reports in U.S. dollars, said revenues were up three per cent to $3.58 billion during the quarter. Adjusted earnings before income tax, depreciation and amortization rose 26 per cent to $864 million.

"Our results once again proved the resilience of our business," chief executive James Smith said in a statement.

"The units in the former professional division continued to perform well and we made significant strides in kick-starting the growth engine in our former markets division. We have simplified our organization, we have strengthened our management team and we are making progress toward improving our execution capability."

For the full year, Thomson Reuters posted a loss of $1.39 billion, $1.67 per share, compared with a profit of $933 million, $1.08 per share, in 2010.

Revenues for 2011 came in six per cent higher at $13.8 billion. Adjusted earnings per share were up 27 per cent at $1.98.

Thomson Reuters has been looking looks to shore up revenue as it faces a tough economy and weaker results in its financial markets operations, which provide specialized data to banks, brokers and other financial companies.

The company announced a management shakeup in December that will see Tom Glocer step down as CEO.

Thomson Reuters, which is controlled by the Toronto-based Thomson family, has offices in Toronto, New York, and London, and employs 55,000 people.