New York
Thomson Reuters and US union agree tentative contract
Friday 29 April 2011
Thomson Reuters reached tentative agreement for a new contract with the Newspaper Guild of New York on Friday, opening the way to end a two-year battle over health benefits and wages.
The preliminary agreement is for a three-year contract that includes a $7.6 million cash settlement for the union, a guaranteed 1.5 per cent annual wage increase, a limit on health care costs and a new social media policy.
The US National Labor Relations Board had said it would file against Reuters on numerous issues, among them accusations that it violated a reporter’s right to discuss working conditions when a supervisor reprimanded her for posting a Twitter message that said, “One way to make this the best place to work is to deal honestly with Guild members.”
The author of the post, Deborah Zabarenko, environmental reporter in Washington and head of the Guild at Reuters, sent that message to a company Twitter address after a manager had asked employees to send postings about how to make Reuters the best place to work.
As part of the settlement announced by the Guild, Thomson Reuters agreed to negotiate a new social media policy that would include language protecting employees’ speech and right to engage in other concerted activity about working conditions, as provided under US federal law.
The deal was negotiated under a new management team led by editor-in-chief Stephen Adler, who took over in February. Management's main negotiator was former Wall Street Journal general counsel Stuart Karle, who was appointed Reuters’ chief operating officer earlier this month.
“They changed the whole tone of the negotiations,” Guild president Bill O’Meara said. “They wanted to get it done. Two years of battling was capped in two days of negotiations.”
Both sides asked the board for a delay in filing its complaint. The union said it would ask the board to drop all charges if the new contract is ratified.
“A lot of the credit for this settlement being able to be reached in relatively short order has to go to the new editorial management team,” O’Meara said. “We are very optimistic that we can have an improved relationship with Thomson Reuters going forward. This settlement I think will help set the stage for that.”
Adler said, “This settlement will allow us to focus all our efforts on producing excellent journalism, which is what we all came here to do.”
The 430 editorial staff who belong to the Guild have worked without a contract since early 2009.
● SOURCE Reuters | The New York Times
The preliminary agreement is for a three-year contract that includes a $7.6 million cash settlement for the union, a guaranteed 1.5 per cent annual wage increase, a limit on health care costs and a new social media policy.
The US National Labor Relations Board had said it would file against Reuters on numerous issues, among them accusations that it violated a reporter’s right to discuss working conditions when a supervisor reprimanded her for posting a Twitter message that said, “One way to make this the best place to work is to deal honestly with Guild members.”
The author of the post, Deborah Zabarenko, environmental reporter in Washington and head of the Guild at Reuters, sent that message to a company Twitter address after a manager had asked employees to send postings about how to make Reuters the best place to work.
As part of the settlement announced by the Guild, Thomson Reuters agreed to negotiate a new social media policy that would include language protecting employees’ speech and right to engage in other concerted activity about working conditions, as provided under US federal law.
The deal was negotiated under a new management team led by editor-in-chief Stephen Adler, who took over in February. Management's main negotiator was former Wall Street Journal general counsel Stuart Karle, who was appointed Reuters’ chief operating officer earlier this month.
“They changed the whole tone of the negotiations,” Guild president Bill O’Meara said. “They wanted to get it done. Two years of battling was capped in two days of negotiations.”
Both sides asked the board for a delay in filing its complaint. The union said it would ask the board to drop all charges if the new contract is ratified.
“A lot of the credit for this settlement being able to be reached in relatively short order has to go to the new editorial management team,” O’Meara said. “We are very optimistic that we can have an improved relationship with Thomson Reuters going forward. This settlement I think will help set the stage for that.”
Adler said, “This settlement will allow us to focus all our efforts on producing excellent journalism, which is what we all came here to do.”
The 430 editorial staff who belong to the Guild have worked without a contract since early 2009.
● SOURCE Reuters | The New York Times
US panel sets date for action against Thomson Reuters
Thursday 14 April 2011
US authorities have set 29 April to issue a previously announced civil complaint against Thomson Reuters unless the company settles its long-running contract dispute with a union representing some editorial employees.
The National Labor Relations Board said it would postpone its complaint, which is similar to an indictment, on charges that include unlawfully implementing pay and benefit cuts until after the Newspaper Guild of New York and management negotiators meet in a bargaining session with a federal mediator on 26 April.
“However, if no settlement of the contract dispute is reached or if the Employer has not agreed to enter into an informal settlement with the (NLRB) by April 28, 2011, the complaint in this case will issue on April 29, 2011 in order to avoid further delays in the processing of this case,” the Board’s Manhattan acting regional director said on Wednesday in a letter to company lawyers and the union.
Last week the Board told Thomson Reuters the complaint would accuse the company of illegally reprimanding a reporter over a public Twitter posting she had sent criticising management.
In its latest letter the NLRB notified the union and management that it planned to add three more allegations to its complaint: that management illegally changed the health care and retirement savings plans and illegally applied a code of conduct to Guild-represented employees that was not negotiated with the union. The Guild represents some 420 Thomson Reuters staff.
Thomson Reuters declared an impasse in contract talks with the Guild in January 2010.
● SOURCE The Newspaper Guild of New York
The National Labor Relations Board said it would postpone its complaint, which is similar to an indictment, on charges that include unlawfully implementing pay and benefit cuts until after the Newspaper Guild of New York and management negotiators meet in a bargaining session with a federal mediator on 26 April.
“However, if no settlement of the contract dispute is reached or if the Employer has not agreed to enter into an informal settlement with the (NLRB) by April 28, 2011, the complaint in this case will issue on April 29, 2011 in order to avoid further delays in the processing of this case,” the Board’s Manhattan acting regional director said on Wednesday in a letter to company lawyers and the union.
Last week the Board told Thomson Reuters the complaint would accuse the company of illegally reprimanding a reporter over a public Twitter posting she had sent criticising management.
In its latest letter the NLRB notified the union and management that it planned to add three more allegations to its complaint: that management illegally changed the health care and retirement savings plans and illegally applied a code of conduct to Guild-represented employees that was not negotiated with the union. The Guild represents some 420 Thomson Reuters staff.
Thomson Reuters declared an impasse in contract talks with the Guild in January 2010.
● SOURCE The Newspaper Guild of New York
US appeals court upholds decision against Thomson Reuters
Friday 19 November 2010
A US Court of Appeals has upheld a lower court ruling that forces Thomson Reuters to allow The Newspaper Guild of New York to seek arbitration to settle contract disputes.
The Guild, which represents 420 employees in the United States, is challenging Thomson Reuters’ decision to suspend automatic collection of union dues. The company had maintained it was not required to go to arbitration since the contract that guaranteed that right expired in February 2009.
“Simply put, we won the battle with Thomson Reuters about our right to fight for our members,” the Guild of New York said in a statement after Thursday’s ruling. The union and the company will go before an arbitrator on 13 December. Other hearings over disciplinary cases will be held early next year.
Jack Reerink, managing editor for the US and Canada, said in a note to staff explaining management’s position after the ruling: “The Guild wanted to make its case before an arbitrator. We went to court because we don’t like to be forced to arbitrate a dispute if we don't really have to.” He added that the company looks forward to making its case and that management hopes “this will not detract from the Guild’s willingness to agree to the fair labor deal we have offered”.
Thursday’s decision did not address the company’s declaration last January of an impasse in contract talks and the subsequent imposition of work rules that included changes in overtime pay and work schedules. Thomson Reuters and the union recently resumed negotiations after a 10-month break. Among the issues dividing them are the company’s desire to impose a merit system for pay increases and increased contributions for health care coverage. The company has offered a $1 million ratification bonus to be spread among the 420 unionized employees if an agreement can be reached before 15 December.
“Reuters is committed to negotiating a fair deal for everyone – an agreement that includes flexibility, rewards for excellence and more equal sharing of health costs, all of which are needed not only to remain competitive, but to keep growing,” a spokeswoman said. “Reuters stands behind its position, and looks forward to the day when the Guild returns to the bargaining table with a meaningful counterproposal.”
● SOURCE Crains New York Business
The Guild, which represents 420 employees in the United States, is challenging Thomson Reuters’ decision to suspend automatic collection of union dues. The company had maintained it was not required to go to arbitration since the contract that guaranteed that right expired in February 2009.
“Simply put, we won the battle with Thomson Reuters about our right to fight for our members,” the Guild of New York said in a statement after Thursday’s ruling. The union and the company will go before an arbitrator on 13 December. Other hearings over disciplinary cases will be held early next year.
Jack Reerink, managing editor for the US and Canada, said in a note to staff explaining management’s position after the ruling: “The Guild wanted to make its case before an arbitrator. We went to court because we don’t like to be forced to arbitrate a dispute if we don't really have to.” He added that the company looks forward to making its case and that management hopes “this will not detract from the Guild’s willingness to agree to the fair labor deal we have offered”.
Thursday’s decision did not address the company’s declaration last January of an impasse in contract talks and the subsequent imposition of work rules that included changes in overtime pay and work schedules. Thomson Reuters and the union recently resumed negotiations after a 10-month break. Among the issues dividing them are the company’s desire to impose a merit system for pay increases and increased contributions for health care coverage. The company has offered a $1 million ratification bonus to be spread among the 420 unionized employees if an agreement can be reached before 15 December.
“Reuters is committed to negotiating a fair deal for everyone – an agreement that includes flexibility, rewards for excellence and more equal sharing of health costs, all of which are needed not only to remain competitive, but to keep growing,” a spokeswoman said. “Reuters stands behind its position, and looks forward to the day when the Guild returns to the bargaining table with a meaningful counterproposal.”
● SOURCE Crains New York Business
Union accuses Thomson Reuters of illegal pay cuts and Twitter curbs
Friday 05 February 2010
A union filed a complaint against Thomson Reuters alleging it is illegally imposing pay cuts and restricting what employees can write on their Twitter accounts.
In a complaint filed with the US National Labor Relations Board, the Newspaper Guild of New York charged that Thomson Reuters plans to cut wages of reporters and other employees by an average of 10 per cent this year without the union's consent.
Thomson Reuters disputed the figure, saying it is guaranteeing a 0.5 per cent increase for the more than 400 US journalists represented by the union at Reuters News. Some will get bigger raises, based on how well they do their jobs, Thomson Reuters said in a statement. "We believe such a system is fairer than a lockstep system and is essential for Reuters' future," the company said.
The union's complaint alleges that on 19 January Thomson Reuters improperly declared an impasse in the negotiations, which have been running for more than a year.
Other media companies, mostly newspapers, have been lowering wages and requiring unpaid leaves of absence during the past year as a severe advertising slump dried up their main source of revenue. The Newspaper Guild contends Reuters has not been hit as hard because it is not as dependent on advertising as newspapers.
"This dispute is really about saving quality journalism in this country," said New York Guild President Bill O'Meara. "If a healthy company like Thomson Reuters – whose CEO made almost as much in 2008 as our 420 members' annual salaries – cuts pay, it will cause less healthy news organizations to cut even more, and pretty soon many of the journalists our democracy depends on won't be able to afford to stay in the business."
The complaint also alleges that Thomson Reuters has not followed proper procedures for drawing up its policy governing its employees' use of Twitter, the online social networking tool for broadcasting brief messages.
Thomson Reuters bars its workers for posting anything "that would damage the reputation of Reuters News or Thomson Reuters." A union activist was reminded of the policy after responding to a senior manager's call to "join the (Twitter) conversation on making Reuters the best place to work" with a tweet that said: "One way to make this the best place to work is to deal honestly with Guild members."
● SOURCE The Associated Press | Newspaper Guild of New York
In a complaint filed with the US National Labor Relations Board, the Newspaper Guild of New York charged that Thomson Reuters plans to cut wages of reporters and other employees by an average of 10 per cent this year without the union's consent.
Thomson Reuters disputed the figure, saying it is guaranteeing a 0.5 per cent increase for the more than 400 US journalists represented by the union at Reuters News. Some will get bigger raises, based on how well they do their jobs, Thomson Reuters said in a statement. "We believe such a system is fairer than a lockstep system and is essential for Reuters' future," the company said.
The union's complaint alleges that on 19 January Thomson Reuters improperly declared an impasse in the negotiations, which have been running for more than a year.
Other media companies, mostly newspapers, have been lowering wages and requiring unpaid leaves of absence during the past year as a severe advertising slump dried up their main source of revenue. The Newspaper Guild contends Reuters has not been hit as hard because it is not as dependent on advertising as newspapers.
"This dispute is really about saving quality journalism in this country," said New York Guild President Bill O'Meara. "If a healthy company like Thomson Reuters – whose CEO made almost as much in 2008 as our 420 members' annual salaries – cuts pay, it will cause less healthy news organizations to cut even more, and pretty soon many of the journalists our democracy depends on won't be able to afford to stay in the business."
The complaint also alleges that Thomson Reuters has not followed proper procedures for drawing up its policy governing its employees' use of Twitter, the online social networking tool for broadcasting brief messages.
Thomson Reuters bars its workers for posting anything "that would damage the reputation of Reuters News or Thomson Reuters." A union activist was reminded of the policy after responding to a senior manager's call to "join the (Twitter) conversation on making Reuters the best place to work" with a tweet that said: "One way to make this the best place to work is to deal honestly with Guild members."
● SOURCE The Associated Press | Newspaper Guild of New York
How to make money out of the Internet, by Hugo Dixon
Monday 25 January 2010
Hugo Dixon, who made more than £3 million out of the sale of his Breakingviews financial commentary website to Thomson Reuters, has some tips for those who want to make money from the Internet.
Thomson Reuters paid £12 million for the business, with £3 million of that sum covering Dixon's shares and options. A further retention bonus keeps him in place for another three years.
"You have got to have distinctive, value-added content and in an era of budget cuts that gets harder and harder," he said in an interview. "The temptation if you've got to cut costs by five per cent is just to salami slice and everyone works a bit harder and quality just deteriorates a little bit more. What you end up with when you finally decide to put it behind a paywall is something that's not good enough to persuade people to pay for."
Dixon, now global editor of the re-branded Reuters Breakingviews, says media groups have got to focus much more clearly on what is their unique selling point – "keep the investment there, possibly increase the investment there, and everything else, which may be necessary as part of a package, because a newspaper is a package, they don't have to produce themselves, they can buy that in," he told The Guardian. He says Rupert Murdoch should never be underestimated but he will have a tough time succeeding with a paywall for his newspaper sites in the UK given the free alternatives.
Prior to founding Breakingviews in 1999 Dixon was a correspondent, leader writer and an editor at the Financial Times. At 46 he is "a trim figure with an air of donnish abstraction about him, and a cerebral manner” The Guardian says, and “looks slightly out of place in the corridors of Reuters' glitzy Canary Wharf HQ. He and his US editor, Rob Cox, are the only survivors of Breakingviews' early days as a dotcom startup. With the bet finally paying off, Dixon can afford to dispense advice. But he is not, on the surface, given to self-doubt and former colleagues say he was not always emollient with those without such a high IQ.
"One former ally less pleased by the deal was Jonathan Ford, Breakingviews' co-founder and another ex-FT staffer. Having left the site in 2007 after the two men fell out, he was signed up the following year to run Reuters' fledgling commentary operation, a rival to Breakingviews. Reuters' decision to buy Dixon's business effectively put Ford out of a job, and unsurprisingly he left." Ford returned the FT last week chief leader writer.
The Reuters deal has allowed Breakingviews to beef up its offices in London and New York, add a second columnist in Hong Kong and Washington and another in Moscow and to seek columnists for Dubai, Mumbai, Tokyo and Frankfurt. It also has people in Paris and Madrid and syndicates columns to 15 newspapers including The Daily Telegraph, The New York Times and Le Monde. The 30-strong team of Reuters Breakviews columnists includes Neil Collins, former City editor of The Daily Telegraph and Peter Thal Larsen, former banking editor of the FT.
● SOURCE The Guardian
Thomson Reuters paid £12 million for the business, with £3 million of that sum covering Dixon's shares and options. A further retention bonus keeps him in place for another three years.
"You have got to have distinctive, value-added content and in an era of budget cuts that gets harder and harder," he said in an interview. "The temptation if you've got to cut costs by five per cent is just to salami slice and everyone works a bit harder and quality just deteriorates a little bit more. What you end up with when you finally decide to put it behind a paywall is something that's not good enough to persuade people to pay for."
Dixon, now global editor of the re-branded Reuters Breakingviews, says media groups have got to focus much more clearly on what is their unique selling point – "keep the investment there, possibly increase the investment there, and everything else, which may be necessary as part of a package, because a newspaper is a package, they don't have to produce themselves, they can buy that in," he told The Guardian. He says Rupert Murdoch should never be underestimated but he will have a tough time succeeding with a paywall for his newspaper sites in the UK given the free alternatives.
Prior to founding Breakingviews in 1999 Dixon was a correspondent, leader writer and an editor at the Financial Times. At 46 he is "a trim figure with an air of donnish abstraction about him, and a cerebral manner” The Guardian says, and “looks slightly out of place in the corridors of Reuters' glitzy Canary Wharf HQ. He and his US editor, Rob Cox, are the only survivors of Breakingviews' early days as a dotcom startup. With the bet finally paying off, Dixon can afford to dispense advice. But he is not, on the surface, given to self-doubt and former colleagues say he was not always emollient with those without such a high IQ.
"One former ally less pleased by the deal was Jonathan Ford, Breakingviews' co-founder and another ex-FT staffer. Having left the site in 2007 after the two men fell out, he was signed up the following year to run Reuters' fledgling commentary operation, a rival to Breakingviews. Reuters' decision to buy Dixon's business effectively put Ford out of a job, and unsurprisingly he left." Ford returned the FT last week chief leader writer.
The Reuters deal has allowed Breakingviews to beef up its offices in London and New York, add a second columnist in Hong Kong and Washington and another in Moscow and to seek columnists for Dubai, Mumbai, Tokyo and Frankfurt. It also has people in Paris and Madrid and syndicates columns to 15 newspapers including The Daily Telegraph, The New York Times and Le Monde. The 30-strong team of Reuters Breakviews columnists includes Neil Collins, former City editor of The Daily Telegraph and Peter Thal Larsen, former banking editor of the FT.
● SOURCE The Guardian
Thomson Reuters audits global food operations, says New York now safe
Wednesday 20 January 2010
Thomson Reuters is auditing food operations at its offices around the world following citations for hygiene violations at its global headquarters in New York.
The cafeteria at 3 Times Square is now safe, according to an internal memo to employees from the internal communications team. The company is monitoring the situation, however.
Media columnist Jeff Bercovici, who broke the original story last week, quoted the internal memo thus on the website Daily Finance: “You may have seen an article called ‘The Dirtiest, and Cleanest, Cafeterias in the Media Business’ that has been circulating on the Internet the past few days. Among its comments on various cafeterias, the article references a November 2009 NYC Health Department inspection of the 3 Times Square cafeteria which cited concerns related to equipment maintenance and food handling. Since that inspection, Aramark -- the company which operates the cafeteria -- has strengthened its processes focused on food handling and equipment. The cafeteria passed a subsequent inspection in December. Aramark has released a statement describing the actions it has taken (see below) and states full confidence in the safety and cleanliness of the food service operations at 3 Times Square.”
The New York City Department of Health and Mental Hygiene had cited failure to vermin-proof the facility at 3 Times Square, “potential contamination sources, and, Other General Violation”. It awarded the cafeteria 32 violation points, mostly concerning food temperature and operating conditions. The executive dining room at 3 Times Square was cited for eight violations.
The internal memo added: “To further support ongoing compliance with standards, Thomson Reuters Facilities group is conducting a close review of Aramark's quarterly internal health inspection reports, annual Health Department inspections, the inventory and maintenance records of cafeteria equipment and the overall state of the cafeteria. We are also conducting audits of other food service operations serving our offices around the globe to ensure that our people have access to healthy food prepared according to strict standards.”
The Aramark statement said: "The circumstances that led to this situation are not reflective of our high standards. We take these matters very seriously and immediately took corrective action to address the situation.
"On November 11, the NYC Board of Health performed a routine inspection of the kitchen and found violations.
"We immediately developed and implemented a plan to take corrective action, which included personnel changes, refreshed employee training, and a full implementation of our sanitation and food safety procedures.
"On December 29, 2009, the NYC Board of Health returned to the kitchen and found the corrective action taken to be effective and the kitchen passed its reinspection.
"Our senior leadership team continues to monitor this location closely to ensure that this remains a clean, safe, and high-quality dining establishment."
● SOURCE Daily Finance
The cafeteria at 3 Times Square is now safe, according to an internal memo to employees from the internal communications team. The company is monitoring the situation, however.
Media columnist Jeff Bercovici, who broke the original story last week, quoted the internal memo thus on the website Daily Finance: “You may have seen an article called ‘The Dirtiest, and Cleanest, Cafeterias in the Media Business’ that has been circulating on the Internet the past few days. Among its comments on various cafeterias, the article references a November 2009 NYC Health Department inspection of the 3 Times Square cafeteria which cited concerns related to equipment maintenance and food handling. Since that inspection, Aramark -- the company which operates the cafeteria -- has strengthened its processes focused on food handling and equipment. The cafeteria passed a subsequent inspection in December. Aramark has released a statement describing the actions it has taken (see below) and states full confidence in the safety and cleanliness of the food service operations at 3 Times Square.”
The New York City Department of Health and Mental Hygiene had cited failure to vermin-proof the facility at 3 Times Square, “potential contamination sources, and, Other General Violation”. It awarded the cafeteria 32 violation points, mostly concerning food temperature and operating conditions. The executive dining room at 3 Times Square was cited for eight violations.
The internal memo added: “To further support ongoing compliance with standards, Thomson Reuters Facilities group is conducting a close review of Aramark's quarterly internal health inspection reports, annual Health Department inspections, the inventory and maintenance records of cafeteria equipment and the overall state of the cafeteria. We are also conducting audits of other food service operations serving our offices around the globe to ensure that our people have access to healthy food prepared according to strict standards.”
The Aramark statement said: "The circumstances that led to this situation are not reflective of our high standards. We take these matters very seriously and immediately took corrective action to address the situation.
"On November 11, the NYC Board of Health performed a routine inspection of the kitchen and found violations.
"We immediately developed and implemented a plan to take corrective action, which included personnel changes, refreshed employee training, and a full implementation of our sanitation and food safety procedures.
"On December 29, 2009, the NYC Board of Health returned to the kitchen and found the corrective action taken to be effective and the kitchen passed its reinspection.
"Our senior leadership team continues to monitor this location closely to ensure that this remains a clean, safe, and high-quality dining establishment."
● SOURCE Daily Finance
Reuters cited for dirtiest media cafeteria in New York
Thursday 14 January 2010
Reuters has the dirtiest media cafeteria in New York, according to recent inspections by the city’s health department.
The New York City Department of Health and Mental Hygiene cited failure to vermin-proof the facility at 3 Times Square, “potential contamination sources, and, Other General Violation”.
It awarded the cafeteria 32 violation points, mostly concerning food temperature and operating conditions. A score of 27 or less is needed for a restaurant to pass the inspection. The average violation point total for all New York City restaurants on their most recent inspection is 14.
The health department said “the Notice of Violation issued for this inspection was resolved by a hearing, or a pleading of guilt and a fine payment, or a default judgement”.
The executive dining room at 3 Times Square – Thomson Reuters’ global headquarters – was cited for eight violations noticed on 30 November.
New York Magazine, under the headline “Never Accept an Invitation to Lunch at the Reuters Cafeteria”, said that after The New York Times shut down its cafeteria because of a gastro-intestinal outbreak last year, the website Daily Finance looked at the rest of the media cafeterias in the city.
The cleanest media cafeterias belong to Google, which earned five points from inspectors, “while ever punctilious Bloomberg managed a sterling four points – surely a relief to employees there, who are strongly encouraged never to leave the building”, media columnist Jeff Bercovici wrote on Daily Finance.
● SOURCE New York City Department of Health and Mental Hygiene | Daily Finance | New York Magazine | The New York Observer
The New York City Department of Health and Mental Hygiene cited failure to vermin-proof the facility at 3 Times Square, “potential contamination sources, and, Other General Violation”.
It awarded the cafeteria 32 violation points, mostly concerning food temperature and operating conditions. A score of 27 or less is needed for a restaurant to pass the inspection. The average violation point total for all New York City restaurants on their most recent inspection is 14.
The health department said “the Notice of Violation issued for this inspection was resolved by a hearing, or a pleading of guilt and a fine payment, or a default judgement”.
The executive dining room at 3 Times Square – Thomson Reuters’ global headquarters – was cited for eight violations noticed on 30 November.
New York Magazine, under the headline “Never Accept an Invitation to Lunch at the Reuters Cafeteria”, said that after The New York Times shut down its cafeteria because of a gastro-intestinal outbreak last year, the website Daily Finance looked at the rest of the media cafeterias in the city.
The cleanest media cafeterias belong to Google, which earned five points from inspectors, “while ever punctilious Bloomberg managed a sterling four points – surely a relief to employees there, who are strongly encouraged never to leave the building”, media columnist Jeff Bercovici wrote on Daily Finance.
● SOURCE New York City Department of Health and Mental Hygiene | Daily Finance | New York Magazine | The New York Observer
Bank of America initiates TRI coverage, sees $39
Wednesday 06 January 2010
Bank of America initiated analyst coverage on Thomson Reuters with a Buy rating and set a price target of $39.
In November, Barclays initiated coverage with an “equal weight” rating.
TRI.N traded three per cent higher at $33.35 in New York on Wednesday. In Toronto the share was 2.5 per cent higher at C$34.47.
● SOURCE Street Insider
In November, Barclays initiated coverage with an “equal weight” rating.
TRI.N traded three per cent higher at $33.35 in New York on Wednesday. In Toronto the share was 2.5 per cent higher at C$34.47.
● SOURCE Street Insider
New York Fed’s PR chief to join Thomson Reuters
Thursday 22 October 2009
The head of public affairs at the Federal Reserve Bank of New York is to take up a similar role at Thomson Reuters.
Calvin Mitchell, executive vice president of the communications group at the New York Fed, will become global head of corporate affairs in November, the company said on Thursday. He will be based in New York.
Mitchell joined the New York Fed in 2005, serving during a tumultuous period for the bank that functions as the Fed's point of connection with Wall Street. He had previously worked at the US Mission to the United Nations, the US Treasury Department, the White House and the National Security Council.
● SOURCE NASDAQ / Dow Jones
Calvin Mitchell, executive vice president of the communications group at the New York Fed, will become global head of corporate affairs in November, the company said on Thursday. He will be based in New York.
Mitchell joined the New York Fed in 2005, serving during a tumultuous period for the bank that functions as the Fed's point of connection with Wall Street. He had previously worked at the US Mission to the United Nations, the US Treasury Department, the White House and the National Security Council.
● SOURCE NASDAQ / Dow Jones
Thomson Reuters obtains final approval for shares de-listing
Tuesday 25 August 2009
Thomson Reuters announced on Tuesday it has obtained UK court approval to unify its dual listed company structure. Shareholders overwhelmingly approved the unification on 7 August and no additional approvals are required.
The last day of trading in Thomson Reuters PLC ordinary shares on the London Stock Exchange and American Depositary Shares (ADSs) on NASDAQ will be 9 September, and the unification will close on 10 September. Thomson Reuters Corporation common shares will continue to trade on the Toronto Stock Exchange and the New York Stock Exchange.
On 10 September former Thomson Reuters PLC shareholders who receive Depository Interests representing entitlements to common shares will be able to convert them into those shares by calling Computershare in Canada and the United States at +1 877 624 5999 or by sending an e-mail to ● globaltransactionteam@computershare.com. In the United Kingdom and elsewhere outside Canada and the United States call +44 870 702 0003 extension 1075, or send an e-mail to ● allukglobaltransactionteam@computershare.co.uk. Thomson Reuters will pay all applicable conversion fees between 10 September and 10 December 10. Additional information about the Depository Interests is available in the Investor Relations section of ● www.thomsonreuters.com.
Thomson Reuters expects settlement of newly-issued common shares and DIs to occur on or about 14 September.
Holders of Thomson Reuters shares as of 21 August are entitled to receive a dividend of 28 cents per share on 15 September. Due to the timing of the closing of the unification, Thomson Reuters PLC shareholders who previously enrolled in the company's dividend reinvestment plan will receive this dividend in cash. Enrollment information for the Thomson Reuters Corporation plan is available in the Investor Relations section of ● www.thomsonreuters.com.
● SOURCE Thomson Reuters
The last day of trading in Thomson Reuters PLC ordinary shares on the London Stock Exchange and American Depositary Shares (ADSs) on NASDAQ will be 9 September, and the unification will close on 10 September. Thomson Reuters Corporation common shares will continue to trade on the Toronto Stock Exchange and the New York Stock Exchange.
On 10 September former Thomson Reuters PLC shareholders who receive Depository Interests representing entitlements to common shares will be able to convert them into those shares by calling Computershare in Canada and the United States at +1 877 624 5999 or by sending an e-mail to ● globaltransactionteam@computershare.com. In the United Kingdom and elsewhere outside Canada and the United States call +44 870 702 0003 extension 1075, or send an e-mail to ● allukglobaltransactionteam@computershare.co.uk. Thomson Reuters will pay all applicable conversion fees between 10 September and 10 December 10. Additional information about the Depository Interests is available in the Investor Relations section of ● www.thomsonreuters.com.
Thomson Reuters expects settlement of newly-issued common shares and DIs to occur on or about 14 September.
Holders of Thomson Reuters shares as of 21 August are entitled to receive a dividend of 28 cents per share on 15 September. Due to the timing of the closing of the unification, Thomson Reuters PLC shareholders who previously enrolled in the company's dividend reinvestment plan will receive this dividend in cash. Enrollment information for the Thomson Reuters Corporation plan is available in the Investor Relations section of ● www.thomsonreuters.com.
● SOURCE Thomson Reuters
Tom Glocer, £4 million to the good, house-hunting in New York
Saturday 15 August 2009
Tom Glocer, who pocketed £4 million after selling some of his Thomson Reuters shares near the top this week, plans to buy a new home in New York, the Financial Times reported.
The CEO, who relocated to his hometown from London last year, sold 200,000 shares at £20.11 – near their all-time high of £20.34 – on Tuesday.
The family kept an apartment in New York while Glocer lived in London as pre-merger Reuters CEO. They also own a lake house in Finland, where Glocer's Finnish wife Maarit grew up.
The FT, which has been reading Glocer's blog, says it's a cut above the usual CEO effort. "Mr Glocer writes about everything from Obama to markets, the future of newspapers, technology (he loves Facebook), books (he reads Roth to Dostoevsky to Houellebecq), music (The Grateful Dead), and 'soccer vs footie'. He started his blog, he says, after deciding that he could see what it was like himself, or pay a pricey consultant to write him a report on it."
● SOURCE Financial Times | Tom Glocer’s Blog
The CEO, who relocated to his hometown from London last year, sold 200,000 shares at £20.11 – near their all-time high of £20.34 – on Tuesday.
The family kept an apartment in New York while Glocer lived in London as pre-merger Reuters CEO. They also own a lake house in Finland, where Glocer's Finnish wife Maarit grew up.
The FT, which has been reading Glocer's blog, says it's a cut above the usual CEO effort. "Mr Glocer writes about everything from Obama to markets, the future of newspapers, technology (he loves Facebook), books (he reads Roth to Dostoevsky to Houellebecq), music (The Grateful Dead), and 'soccer vs footie'. He started his blog, he says, after deciding that he could see what it was like himself, or pay a pricey consultant to write him a report on it."
● SOURCE Financial Times | Tom Glocer’s Blog
Cost cuts help Q2 results beat forecasts
Thursday 06 August 2009
Thomson Reuters reported a better-than-expected quarterly profit on Thursday, helped by cost cuts, and affirmed its 2009 outlook that revenue will grow despite tough conditions in the financial industry.
Q2 underlying operating profit rose 11 per cent to $793 million, or 58 cents per share, from $713 million, or 39 cents per share, in the same quarter a year ago. Analysts had expected earnings of 43 cents per share on that basis, according to Reuters Estimates.
The company attributed the profit growth to cost controls, currency benefits and savings from Thomson's purchase of Reuters last year. It expects $1 billion of annual savings by the end of 2009. The target is $1.4 billion by 2011.
Revenue from ongoing businesses, excluding the impact of foreign exchange rates, rose two per cent to $3.28 billion.
The company stuck to its forecast that revenue would grow this year and that underlying operating margin and free cash flow would be comparable to 2008, even as customers cut staff and budgets in the wake of the financial crisis.
"Quite a few banks are saying, 'Oh, we cut too deeply and we're finding business is so good, we need to hire people to handle the volume,'" CEO Tom Glocer said in a Reuters interview. "I couldn't imagine six months ago that people would be talking about guaranteed bonuses over multiple years to hire people," he said.
Nevertheless, the fallout from the financial crisis will likely squeeze the Markets division, Glocer said. "It's only logical to assume that in the second half of the year, the (division's) reported revenue growth will go below the zero line rather than above it."
Thomson Reuters shares on the London Stock Exchange traded 6.44 per cent higher at 2000 pence after the release of the results, smashing through the previous 52-week high.
Shareholders will vote at extraordinary general meetings in London and Toronto on Friday on a proposal to delist the company's shares in London. They will continue to trade in New York and Toronto.
● SOURCE Reuters | Transcript of analysts’ conference call
Q2 underlying operating profit rose 11 per cent to $793 million, or 58 cents per share, from $713 million, or 39 cents per share, in the same quarter a year ago. Analysts had expected earnings of 43 cents per share on that basis, according to Reuters Estimates.
The company attributed the profit growth to cost controls, currency benefits and savings from Thomson's purchase of Reuters last year. It expects $1 billion of annual savings by the end of 2009. The target is $1.4 billion by 2011.
Revenue from ongoing businesses, excluding the impact of foreign exchange rates, rose two per cent to $3.28 billion.
The company stuck to its forecast that revenue would grow this year and that underlying operating margin and free cash flow would be comparable to 2008, even as customers cut staff and budgets in the wake of the financial crisis.
"Quite a few banks are saying, 'Oh, we cut too deeply and we're finding business is so good, we need to hire people to handle the volume,'" CEO Tom Glocer said in a Reuters interview. "I couldn't imagine six months ago that people would be talking about guaranteed bonuses over multiple years to hire people," he said.
Nevertheless, the fallout from the financial crisis will likely squeeze the Markets division, Glocer said. "It's only logical to assume that in the second half of the year, the (division's) reported revenue growth will go below the zero line rather than above it."
Thomson Reuters shares on the London Stock Exchange traded 6.44 per cent higher at 2000 pence after the release of the results, smashing through the previous 52-week high.
Shareholders will vote at extraordinary general meetings in London and Toronto on Friday on a proposal to delist the company's shares in London. They will continue to trade in New York and Toronto.
● SOURCE Reuters | Transcript of analysts’ conference call
Reuters' many flags - FT
Wednesday 24 June 2009
Thomson Reuters’ decision to end its London Stock Exchange listing will deny British index funds and those institutions with an outdated mandate to invest only in UK-listed companies the opportunity to share in future growth of the business, the Financial Times said on Wednesday.
Something has gone a bit awry when UK investors keep their exposure to London-listed Kazakh miners that are part of the FTSE 100 index but lose their stake in a global media business with deep roots in Britain, it said in a report under the headline “Reuters' many flags”.
But Thomson Reuters’ experience does not necessary rule out a dual-listed structure the next time somebody wants to mount a cross-border takeover using shares, rather than cash, the FT said.
Companies as diverse as Thomson Reuters' competitor Reed Elsevier, cruise company Carnival, and miner Rio Tinto maintain a dual listing.
“But the structure is an impediment when raising funds - or defending against a hostile bid - it imposes an additional running cost ($10 million a year in Thomson Reuters' case), and it adds complexity when simplicity is in fashion.”
The FT quoted a 1915 leaflet celebrating the 50th anniversary of Reuter's Telegram Company: "Reuter's Agency has always been recognised as a British institution representing the English point of view. [Its managing director] is in all respects an Englishman. The Directors, the Editorial Staff, and the correspondents are British pure and simple, and so, with the exception of a score, are the 1,200 shareholders."
Reuters once had to defend itself against allegations of undue German influence during the First World War, the FT said. “Times have changed. No one will accuse Thomson Reuters of treasonable behaviour for ending its London listing. The media group has recognised the inevitable reality and UK-based shareholders have voted with their feet. Since last year's deal with Canada's Thomson, the proportion of Thomson Reuters PLC's shares held in London has dropped from 58 per cent to less than 25 per cent. The balance of shareholder power has inexorably shifted to New York and Toronto.
“If there is concern about the decision in London, it won't be on patriotic grounds. Reuters had been a global company for years before the Thomson deal (although according to a history of the group, Sir Peter Job, managing director, dismissed a 1980 suggestion to relocate its HQ to Geneva as "pallid internationalism").”
The FT noted that “Paul Julius Reuter, the agency's founder, had two names (he was born Israel Beer Josaphat), two nationalities (German and English) and two religions (Jewish and Christian), so you wouldn't bet against Thomson Reuters adding another listing in future (Shanghai, perhaps). But, barring takeover or break-up, London is, regrettably, unlikely to be one of them.”
● SOURCE Financial Times
Something has gone a bit awry when UK investors keep their exposure to London-listed Kazakh miners that are part of the FTSE 100 index but lose their stake in a global media business with deep roots in Britain, it said in a report under the headline “Reuters' many flags”.
But Thomson Reuters’ experience does not necessary rule out a dual-listed structure the next time somebody wants to mount a cross-border takeover using shares, rather than cash, the FT said.
Companies as diverse as Thomson Reuters' competitor Reed Elsevier, cruise company Carnival, and miner Rio Tinto maintain a dual listing.
“But the structure is an impediment when raising funds - or defending against a hostile bid - it imposes an additional running cost ($10 million a year in Thomson Reuters' case), and it adds complexity when simplicity is in fashion.”
The FT quoted a 1915 leaflet celebrating the 50th anniversary of Reuter's Telegram Company: "Reuter's Agency has always been recognised as a British institution representing the English point of view. [Its managing director] is in all respects an Englishman. The Directors, the Editorial Staff, and the correspondents are British pure and simple, and so, with the exception of a score, are the 1,200 shareholders."
Reuters once had to defend itself against allegations of undue German influence during the First World War, the FT said. “Times have changed. No one will accuse Thomson Reuters of treasonable behaviour for ending its London listing. The media group has recognised the inevitable reality and UK-based shareholders have voted with their feet. Since last year's deal with Canada's Thomson, the proportion of Thomson Reuters PLC's shares held in London has dropped from 58 per cent to less than 25 per cent. The balance of shareholder power has inexorably shifted to New York and Toronto.
“If there is concern about the decision in London, it won't be on patriotic grounds. Reuters had been a global company for years before the Thomson deal (although according to a history of the group, Sir Peter Job, managing director, dismissed a 1980 suggestion to relocate its HQ to Geneva as "pallid internationalism").”
The FT noted that “Paul Julius Reuter, the agency's founder, had two names (he was born Israel Beer Josaphat), two nationalities (German and English) and two religions (Jewish and Christian), so you wouldn't bet against Thomson Reuters adding another listing in future (Shanghai, perhaps). But, barring takeover or break-up, London is, regrettably, unlikely to be one of them.”
● SOURCE Financial Times
TR's London shares gain 7.3 per cent on delisting news
Tuesday 23 June 2009
Thomson Reuters' London shares had their biggest gain in more than six months after the company unveiled plans to quit the London Stock Exchange.
The shares rose as much as 7.3 per cent to 1750 pence, the biggest gain since 19 December, before falling back to 1720 pence. The London shares later gave up more of the gain, closing at 1690 pence, a rise of 59 pence or 3.62 per cent on the day.
Over the past year the London shares have traded at a discount of up to 20 per cent to the North American shares, although this has narrowed to about 10 per cent recently.
It was described as an arbitrageur’s dream, allowing investors to sell the more expensive North American shares and buy the cheaper British ones.
Thomson Reuters said on Monday it would remain listed on the Toronto Stock Exchange and New York Stock Exchange, while quitting the LSE and NASDAQ.
● SOURCE Bloomberg | MarketWatch
The shares rose as much as 7.3 per cent to 1750 pence, the biggest gain since 19 December, before falling back to 1720 pence. The London shares later gave up more of the gain, closing at 1690 pence, a rise of 59 pence or 3.62 per cent on the day.
Over the past year the London shares have traded at a discount of up to 20 per cent to the North American shares, although this has narrowed to about 10 per cent recently.
It was described as an arbitrageur’s dream, allowing investors to sell the more expensive North American shares and buy the cheaper British ones.
Thomson Reuters said on Monday it would remain listed on the Toronto Stock Exchange and New York Stock Exchange, while quitting the LSE and NASDAQ.
● SOURCE Bloomberg | MarketWatch
Delisting won't affect operations, customers, strategy or financial position - Tom Glocer
Tuesday 23 June 2009
“Unification would benefit shareholders by creating a single deep, global pool of liquidity and a simpler, more transparent capital structure,” he said in a message to the company’s 52,000 staff.
“Our shares are currently listed on four different stock exchanges [London, New York, NASDAQ and Toronto], which has fragmented the trading in our shares and deterred certain large global investors from buying our shares. Unification would also reduce costs and complexity across the company.
“You might fairly ask did we not anticipate when we announced the structure in 2007 that a DLC [dual listed company] would split the trading in our shares and carry a cost and complexity burden? We did, but we believed that these disadvantages would be outweighed by retaining and attracting an active following of investors in the UK. Unfortunately, things have not worked out that way. Over the past two years the percentage of shares held by UK active shareholders has declined from 45% of Thomson Reuters PLC to 12%, and North American investors now own 64% of PLC shares. Overall, UK shareholders now represent only 5% of our consolidated shareholder base. In these circumstances, it is now far better to unify our structure to offer a single, deep pool of liquidity to global investors.”
Glocer encouraged staff who hold Thomson Reuters shares to vote for the change at shareholder meetings scheduled for 7 August. He said shareholder meeting materials and proxy forms will be available in early July.
Following unification, all Thomson Reuters shareholders will have the same economic and voting interests in the company as they do under the current DLC structure, Glocer said.
“Our commitment to customers, employees and other stakeholders in London, the United Kingdom and Europe is unchanged by where we list our shares. London is a vital global capital for the markets we serve and home to more than 5,000 of our employees.
“The Founders Share Company has indicated it will support unification as this will in no way diminish our adherence to the Reuters Trust Principles.”
● SOURCE Thomson Reuters
Thomson Reuters to quit London Stock Exchange
Monday 22 June 2009
Thomson Reuters said it plans to withdraw its shares from the London Stock Exchange, “severing a key connection with Reuters' British roots”, as Reuters’ own story put it.
The company said it would also remove its shares from NASDAQ and remain listed only on the New York and Toronto exchanges.
Chief executive Tom Glocer played down concerns that Thomson Reuters could lose any UK-based shareholders through the action, noting that only five per cent of all shareholders are in the United Kingdom. He expressed hope that those shareholders would retain their holdings even after the delisting.
"Our shares are now fragmented, divided between North America and London in a way we didn't envision. That's hurting the company because there are investors who would come in but won't," Glocer said in a telephone interview with Reuters.
Thomson Reuters said it would seek shareholder approval for the London and NASDAQ delistings on 7 August.
"In a global electronic world where shares are trading in ones and zeros ... where we trade our shares is, to me, plumbing," Glocer said. "I think we shouldn't get too hung up ... London is still the second largest centre that we've got."
Thomson Reuters shares closed down 78 cents to C$33.53 on the Toronto Stock Exchange and down 94 cents at $29.08 on the New York Stock Exchange.
● SOURCE Reuters
The company said it would also remove its shares from NASDAQ and remain listed only on the New York and Toronto exchanges.
Chief executive Tom Glocer played down concerns that Thomson Reuters could lose any UK-based shareholders through the action, noting that only five per cent of all shareholders are in the United Kingdom. He expressed hope that those shareholders would retain their holdings even after the delisting.
"Our shares are now fragmented, divided between North America and London in a way we didn't envision. That's hurting the company because there are investors who would come in but won't," Glocer said in a telephone interview with Reuters.
Thomson Reuters said it would seek shareholder approval for the London and NASDAQ delistings on 7 August.
"In a global electronic world where shares are trading in ones and zeros ... where we trade our shares is, to me, plumbing," Glocer said. "I think we shouldn't get too hung up ... London is still the second largest centre that we've got."
Thomson Reuters shares closed down 78 cents to C$33.53 on the Toronto Stock Exchange and down 94 cents at $29.08 on the New York Stock Exchange.
● SOURCE Reuters
Reuters hires three more columnists
Thursday 14 May 2009
Reuters announced three more appointments to its commentary team.
Agnes Crane, an editor at Dow Jones Newswires, Matthew Goldstein, a senior writer for BusinessWeek, and Christopher Swann from Bloomberg News are joining over the next three weeks as columnists based in New York.
The 25-member commentary team based primarily in London and New York will produce a blog.
The team will be led by Jonathan Ford, co-founder of Breakingviews. The European team will be led by Peter Thal Larsen, formerly banking editor of the Financial Times, and the US team will be led by Jeffrey Cane, formerly an editor at Portfolio.com and The New York Times.
"I am very excited to have a team of such talented financial journalists," said Cane. "They, along with our New York-based financial blogger, Felix Salmon, and our Washington blogger and columnist, James Pethokoukis, will greatly expand the ability of Reuters to offer smart, fact-based opinion on the big stories in the global financial markets."
● SOURCE PR News Wire
Agnes Crane, an editor at Dow Jones Newswires, Matthew Goldstein, a senior writer for BusinessWeek, and Christopher Swann from Bloomberg News are joining over the next three weeks as columnists based in New York.
The 25-member commentary team based primarily in London and New York will produce a blog.
The team will be led by Jonathan Ford, co-founder of Breakingviews. The European team will be led by Peter Thal Larsen, formerly banking editor of the Financial Times, and the US team will be led by Jeffrey Cane, formerly an editor at Portfolio.com and The New York Times.
"I am very excited to have a team of such talented financial journalists," said Cane. "They, along with our New York-based financial blogger, Felix Salmon, and our Washington blogger and columnist, James Pethokoukis, will greatly expand the ability of Reuters to offer smart, fact-based opinion on the big stories in the global financial markets."
● SOURCE PR News Wire
Thomson Reuters Q1 profit beats forecasts
Thursday 07 May 2009
Thomson Reuters reported better-than-expected first quarter profit on Thursday as it kept a tight control on costs. The company reaffirmed its expectation that revenue will grow this year.
CEO Tom Glocer said the climate in the market had improved but not enough to rule out further weakness.
"I can't really call exactly where the bottom is. There can be false dawns. Right now sentiment is quite good in the market. We see them opening up their purse strings just a little bit," he said.
The London-listed shares closed a tad under 44 pence lower at 1,812 pence, down 2.37 per cent, after hitting a record high of 1,939 before the results were released.
Greater losses were registered in New York and Toronto.
In New York, Thomson Reuters shares closed 5.73 per cent lower at $29.77, a loss of $1.81.
On NASDAQ, the shares closed at $161.51, down $7.98 or 4.71 per cent.
In Toronto, the fall was 4.75 per cent or C$1.75 to a close of C$35.08.
Thomson Reuters’ Q1 net income was $228 million, or 27 cents a share, compared with $194 million, or 30 cents a share, a year ago.
Underlying operating profit, excluding amortisation, integration costs and other items, rose two per cent to $588 million, or 40 cents per share, beating the average analyst forecast of 34 cents per share.
Revenue from ongoing businesses was $3.12 billion, down three per cent from a year ago but up three per cent before currency effects. Analysts on average were expecting revenue of $3.17 billion.
The company reaffirmed its outlook for revenue to grow in 2009, and for underlying operating margin and free cash flow to be comparable to 2008, supported by revenue growth and the expected savings from integration programmes.
Thomson Reuters has said it expects annualised cost savings of $1 billion by the end of 2011, and Glocer said that while this was a good target, he did not rule out more.
Revenue in the Markets division, which supplies news and data to financial institutions, fell seven per cent to $1.85 billion, hurt by lower transaction volumes and job cuts. But the revenue would have risen 0.4 per cent before currency effects.
Though the outlook has brightened in recent weeks, financial institutions have been hit by closures, mergers and deep job cuts, and Reuters reported that the company is regarded by some analysts as the riskiest bet among professional information providers due to its exposure to the financial sector for about 60 per cent of group sales.
But strong execution, a high proportion of subscription and digital revenues, and the resilience of the Professional unit have helped to drive up Thomson Reuters London-listed shares by more than 20 per cent in the year to date.
Revenue at the Professional division, which supplies information to lawyers, scientists, accountants and the healthcare industry, rose two per cent to $1.27 billion, or five per cent excluding currency effects.
Glocer told the Financial Times that Thomson Reuters can take market share from rivals once turbulent financial and legal markets revive.
Bloomberg’s fall in terminal numbers by 2.5 per cent since November suggested “a much stronger descent than we’re seeing” in the markets business where they compete, Glocer said. “I certainly feel we’re at least holding our own.”
Much of the market share gains the group foresees would come from taking over the “do-it-yourself” data efforts of large banks and other customers, he said. Subscriptions had risen by two per cent in the markets business, while transaction revenues had fallen, but would rebound quickly in a recovery, he added.
“It feels like sentiment has changed in the last month,” Glocer told the FT, “but we don’t run our business on the basis that we need to clutch at green shoots.”
Robert Daleo, chief financial officer, said savings from integration were ahead of plan, adding that when combined with earlier initiatives these were on track to meet a $1.4 billion target by 2011.
● CLICK to read a transcript of the analysts’ webcast by Tom Glocer and Robert Daleo.
● SOURCE Reuters | Financial Times
CEO Tom Glocer said the climate in the market had improved but not enough to rule out further weakness.
"I can't really call exactly where the bottom is. There can be false dawns. Right now sentiment is quite good in the market. We see them opening up their purse strings just a little bit," he said.
The London-listed shares closed a tad under 44 pence lower at 1,812 pence, down 2.37 per cent, after hitting a record high of 1,939 before the results were released.
Greater losses were registered in New York and Toronto.
In New York, Thomson Reuters shares closed 5.73 per cent lower at $29.77, a loss of $1.81.
On NASDAQ, the shares closed at $161.51, down $7.98 or 4.71 per cent.
In Toronto, the fall was 4.75 per cent or C$1.75 to a close of C$35.08.
Thomson Reuters’ Q1 net income was $228 million, or 27 cents a share, compared with $194 million, or 30 cents a share, a year ago.
Underlying operating profit, excluding amortisation, integration costs and other items, rose two per cent to $588 million, or 40 cents per share, beating the average analyst forecast of 34 cents per share.
Revenue from ongoing businesses was $3.12 billion, down three per cent from a year ago but up three per cent before currency effects. Analysts on average were expecting revenue of $3.17 billion.
The company reaffirmed its outlook for revenue to grow in 2009, and for underlying operating margin and free cash flow to be comparable to 2008, supported by revenue growth and the expected savings from integration programmes.
Thomson Reuters has said it expects annualised cost savings of $1 billion by the end of 2011, and Glocer said that while this was a good target, he did not rule out more.
Revenue in the Markets division, which supplies news and data to financial institutions, fell seven per cent to $1.85 billion, hurt by lower transaction volumes and job cuts. But the revenue would have risen 0.4 per cent before currency effects.
Though the outlook has brightened in recent weeks, financial institutions have been hit by closures, mergers and deep job cuts, and Reuters reported that the company is regarded by some analysts as the riskiest bet among professional information providers due to its exposure to the financial sector for about 60 per cent of group sales.
But strong execution, a high proportion of subscription and digital revenues, and the resilience of the Professional unit have helped to drive up Thomson Reuters London-listed shares by more than 20 per cent in the year to date.
Revenue at the Professional division, which supplies information to lawyers, scientists, accountants and the healthcare industry, rose two per cent to $1.27 billion, or five per cent excluding currency effects.
Glocer told the Financial Times that Thomson Reuters can take market share from rivals once turbulent financial and legal markets revive.
Bloomberg’s fall in terminal numbers by 2.5 per cent since November suggested “a much stronger descent than we’re seeing” in the markets business where they compete, Glocer said. “I certainly feel we’re at least holding our own.”
Much of the market share gains the group foresees would come from taking over the “do-it-yourself” data efforts of large banks and other customers, he said. Subscriptions had risen by two per cent in the markets business, while transaction revenues had fallen, but would rebound quickly in a recovery, he added.
“It feels like sentiment has changed in the last month,” Glocer told the FT, “but we don’t run our business on the basis that we need to clutch at green shoots.”
Robert Daleo, chief financial officer, said savings from integration were ahead of plan, adding that when combined with earlier initiatives these were on track to meet a $1.4 billion target by 2011.
● CLICK to read a transcript of the analysts’ webcast by Tom Glocer and Robert Daleo.
● SOURCE Reuters | Financial Times
Thomson Reuters' UK shares hit record high
Tuesday 05 May 2009
Thomson Reuters’ London shares closed at a record high on Tuesday.
The stock ended the day up 95 pence – 5.43 per cent – at 1845 pence on the London Stock Exchange.
Percentage increases in North America were modest.
On the New York Stock Exchange, the share was six cents higher – 0.20 per cent – at $30.70.
On NASDAQ, the increase was $2.45 – 1.49 per cent – to $166.45.
In Toronto, the increase was C$0.16 – 0.44 per cent – to C$36.15.
The stock ended the day up 95 pence – 5.43 per cent – at 1845 pence on the London Stock Exchange.
Percentage increases in North America were modest.
On the New York Stock Exchange, the share was six cents higher – 0.20 per cent – at $30.70.
On NASDAQ, the increase was $2.45 – 1.49 per cent – to $166.45.
In Toronto, the increase was C$0.16 – 0.44 per cent – to C$36.15.
Goldman Sachs cuts Thomson Reuters to 'sell'
Thursday 16 April 2009
Goldman Sachs cut its rating on Thomson Reuters to “sell” from “neutral” on Thursday, sending the shares lower in London and New York.
The influential US investment bank believes the group’s financial information business – the Markets division – will suffer a significant deterioration in sales this year.
Citing another round of job cuts at leading investment banks, Goldman said: “We believe Markets will see significant deterioration in 1Q to -3 per cent and for the full year to -8 per cent, compared with full-year consensus forecasts of -4 per cent.”
At one point the London shares touched 1,611 pence, but then closed at 1,656 – 9.30% below their 52-week high of 1,826 pence set a year ago. The 52-week low is 883 pence.
Tomorrow is the first anniversary of Thomson Corp’s takeover of Reuters.
Over the last week Thomson Reuters has underperformed the FTSE 100 index. Over all other time periods it outperformed the index.
Closing prices:
LONDON: TRIL.L up 0.98 per cent to 1656p.
NEW YORK: TRI down 1.70 per cent to $27.19.
TORONTO: TRI.TO down 1.29 per cent to C$32.90.
NASDAQ: TRIN up 0.60 per cent to $149.41.
● SOURCE Financial Times
The influential US investment bank believes the group’s financial information business – the Markets division – will suffer a significant deterioration in sales this year.
Citing another round of job cuts at leading investment banks, Goldman said: “We believe Markets will see significant deterioration in 1Q to -3 per cent and for the full year to -8 per cent, compared with full-year consensus forecasts of -4 per cent.”
At one point the London shares touched 1,611 pence, but then closed at 1,656 – 9.30% below their 52-week high of 1,826 pence set a year ago. The 52-week low is 883 pence.
Tomorrow is the first anniversary of Thomson Corp’s takeover of Reuters.
Over the last week Thomson Reuters has underperformed the FTSE 100 index. Over all other time periods it outperformed the index.
Closing prices:
LONDON: TRIL.L up 0.98 per cent to 1656p.
NEW YORK: TRI down 1.70 per cent to $27.19.
TORONTO: TRI.TO down 1.29 per cent to C$32.90.
NASDAQ: TRIN up 0.60 per cent to $149.41.
● SOURCE Financial Times
Tom Glocer says Thomson Reuters set for growth in 2009
Thursday 29 January 2009
Thomson Reuters continues to see bright spots in its financial services unit and the company is still set for growth this year, CEO Tom Glocer said on Thursday.
Even though there were big job losses across the financial services industry there would still need to be hirings in new areas, he told Reuters correspondent Mike Dolan at the annual meeting of the World Economic Forum in Davos, Switzerland.
"The trading of very opaque assets with very wide spreads, I think we'll see those sorts of over-the-counter markets evolve," Glocer said, adding that there will be a need for pricing feeds and infrastructure to accurately price those assets.
"I don't think anybody who's here can in their right mind be optimistic about 2009, either from a global economy point of view or in financial services," he said.
But "in our financial services unit ... we continue to see bright spots right across the world. I'm feeling good about the business.”
Thomson Reuters makes about 60 per cent of revenues and 45 per cent of profits from its markets division, whose customers are mainly banks.
"There's no question that growth has been tempering, it's been coming down,” Glocer said. “But for the company as a whole, we continue to talk about growth in 2009."
He said the integration after Thomson Corp’s $11 billion takeover of Reuters in April 2008 was "going very well".
He also said the company would keep the different listings of its stock in London, Toronto and New York as long as investors demanded it.
"The London listing was left in place to meet the demand. As long as that's the case, there's certainly a rationale for maintaining the listing," he said.
Investors have speculated that the company may drop its London listing as a price gap that opened up on the first day of trading in Thomson Reuters shares in Toronto and London widens.
● SOURCE Reuters
Thomson Reuters may post strong results, say analysts
Friday 16 January 2009
Thomson Reuters is expected to post strong results next month, J.P. Morgan Securities analysts said on Friday, even as they downgraded the London-listed shares to "neutral" from "overweight" on valuation.
The analysts raised their price targets on the London- and New York-listed shares of the group and kept their "neutral" stance on the U.S. stock.
"We continue to like the fundamentals of the company but would look for a better entry price into both stocks," they wrote in a note to clients.
The analysts expect the group to report strong results, with potential cost savings and/or some restructuring charges shifting from 2008 to 2009.
But the key risk to the shares is news about financial industry job losses and the market's potential read-through to organic growth at the group's markets division, they said. The markets division includes the Reuters and Thomson news operations as well as financial data and tools for investment banks and other financial firms.
Chief financial officer Robert Daleo said last week that the group's quarterly and annual revenue growth rate would slow, reflecting the effects of the world financial crisis.
J.P. Morgan analysts, however, said any weakness in the group's markets division revenue will be offset by the relative strength in its professional unit, which represented about 60 per cent of profits. The professional division sells databases and other deep information reservoirs to lawyers, accountants, scientists and the healthcare industry.
Cost savings may also largely cushion any markets revenue decline, the analysts added.
They raised their price target on Thomson Reuters’ London shares to 1,750 pence from 1,500 pence, and on Thomson Reuters Corp shares to $26.60 from $26.30.
● SOURCE Reuters
The analysts raised their price targets on the London- and New York-listed shares of the group and kept their "neutral" stance on the U.S. stock.
"We continue to like the fundamentals of the company but would look for a better entry price into both stocks," they wrote in a note to clients.
The analysts expect the group to report strong results, with potential cost savings and/or some restructuring charges shifting from 2008 to 2009.
But the key risk to the shares is news about financial industry job losses and the market's potential read-through to organic growth at the group's markets division, they said. The markets division includes the Reuters and Thomson news operations as well as financial data and tools for investment banks and other financial firms.
Chief financial officer Robert Daleo said last week that the group's quarterly and annual revenue growth rate would slow, reflecting the effects of the world financial crisis.
J.P. Morgan analysts, however, said any weakness in the group's markets division revenue will be offset by the relative strength in its professional unit, which represented about 60 per cent of profits. The professional division sells databases and other deep information reservoirs to lawyers, accountants, scientists and the healthcare industry.
Cost savings may also largely cushion any markets revenue decline, the analysts added.
They raised their price target on Thomson Reuters’ London shares to 1,750 pence from 1,500 pence, and on Thomson Reuters Corp shares to $26.60 from $26.30.
● SOURCE Reuters
Police evacuate New York newsroom
Monday 27 October 2008
Reuters’ New York newsroom was evacuated on Monday after an envelope with a "puff of powder" in it was received.
Police told staff to evacuate the 19th floor newsroom after Brian Rhoads, managing editor for the Americas, opened an envelope and a "puff of powder" came out of it, Reuters spokeswoman Jolie Hunt said.
Police isolated the envelope, and Rhoads, and then told the 140 members of staff to leave as a precautionary measure while they investigated. News was filed from other offices.
Nearly three hours later the authorities said the powder was harmless and staff returned to their desks, Hunt said.
Threatening letters, many containing a suspicious white powder, have been sent this month to Chase bank offices in several US states and the headquarters of The New York Times. The letters said “it’s payback time”, according to a text released by the FBI.
US authorities have been on alert for such letters since 2001 when envelopes laced with anthrax were sent to media outlets and lawmakers, killing five people.
● SOURCE Reuters
Police told staff to evacuate the 19th floor newsroom after Brian Rhoads, managing editor for the Americas, opened an envelope and a "puff of powder" came out of it, Reuters spokeswoman Jolie Hunt said.
Police isolated the envelope, and Rhoads, and then told the 140 members of staff to leave as a precautionary measure while they investigated. News was filed from other offices.
Nearly three hours later the authorities said the powder was harmless and staff returned to their desks, Hunt said.
Threatening letters, many containing a suspicious white powder, have been sent this month to Chase bank offices in several US states and the headquarters of The New York Times. The letters said “it’s payback time”, according to a text released by the FBI.
US authorities have been on alert for such letters since 2001 when envelopes laced with anthrax were sent to media outlets and lawmakers, killing five people.
● SOURCE Reuters
Share buyback scheme extended
Wednesday 04 June 2008
Thomson Reuters said on Wednesday it had received approval from the Toronto Stock Exchange (TSX) to renew a US$500 million stock buyback programme for a further 12 months.
The programme will end on 5 June 2009. Shares can be bought on either the TSX or the New York Stock Exchange.
Under the bid, up to 15 million common shares can be repurchased, representing 1.81 per cent of Thomson Reuters’ outstanding shares on 30 May.
Thomson Reuters began purchasing ordinary shares of Thomson Reuters PLC on 18 April, the day after the formation of the merged company. Approximately 9.6 million Thomson Reuters PLC ordinary shares were purchased for a total cost of about US$302 million from 18 April to 30 May.
Thomson Reuters shares listed in London are trading at a 16 per cent discount to those in New York and Toronto.
● SOURCE Thomson Reuters | Financial Post | Seeking Alpha
The programme will end on 5 June 2009. Shares can be bought on either the TSX or the New York Stock Exchange.
Under the bid, up to 15 million common shares can be repurchased, representing 1.81 per cent of Thomson Reuters’ outstanding shares on 30 May.
Thomson Reuters began purchasing ordinary shares of Thomson Reuters PLC on 18 April, the day after the formation of the merged company. Approximately 9.6 million Thomson Reuters PLC ordinary shares were purchased for a total cost of about US$302 million from 18 April to 30 May.
Thomson Reuters shares listed in London are trading at a 16 per cent discount to those in New York and Toronto.
● SOURCE Thomson Reuters | Financial Post | Seeking Alpha
