In its earnings webcast, Thomson said the Corporate and Professional drove revenue growth with the Government business falling by 7 percent.
CFO Stephane Bello said Tax & Accounting's operating profit was impacted by severance costs, which he said were not significant enough to report separately, along with investments in the business. Bello said severance payments were largely in the Knowledge Solutions part of the business.
"We've actually increased head count in areas that can grow," CEO James Smith said. Smith did not give employee levels but said the number of Tax & Accounting workers increased particularly outside of the United States.
Also, results suffered from the fact that last year's first quarter included several one-time items that boosted operating profit to the highest level of the year. "We did not see these one-time benefits repeat themselves," he said. Acquisitions had no impact on results, Bello said, which is the first time in several quarters that has been true for Tax & Accounting.
Total results included net earnings of $272 million from continuing operations in the most recently ended period, a decline of 15 percent from $320 million a year ago.
Total results included net earnings of $272 million from continuing operations in the most recently ended period, a decline of 15 percent from $320 million a year ago. Revenue was $2,79 billion, a decline of 1 percent of $2,82 billion in last year's corresponding period.
