Publisher Reed Elsevier, Netherlands, expects that cost cuts will help it achieve growth of over 10 percent in annual profit per share. The publisher will reportedly keep its official target at a growth rate of at least 10 percent annually, but internally it hopes for improved margins to enhance its share price.
According to Chief Executive Crispin Davis, Reed Elsevier can cut costs by better cooperation between its three business units - science and medical, legal and business publishing and exhibitions. Also, it can boost its earnings by developing and offering more software products for its content. Davis has reportedly told a Dutch newspaper that though private equity firms have shown interest in buying Reed Elsevier, this interest has subsided since the outbreak of the credit crisis.
The company recently completed the sale of its Harcourt US Schools Education Business to Houghton Mifflin Riverdeep Group for $4 billion.
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