Business and Finance

News and information publisher Thomson Reuters reaffirmed its 2008 outlook on Thursday, although it said the financial crisis hitting many customer banks would hurt the company in the short term.

Chief Executive Tom Glocer said that while the credit crunch gripping world financial markets would affect the company in the short to medium term, it represented a long-term opportunity as banks would need the company’s products as they consolidated.

Thomson Reuters, whose markets division is exposed to financial services and brings in 59 percent of group sales, said it expected 2008 revenue growth of 6 to 8 percent, almost all organic, and an underlying profit margin of 19 to 21 percent.

The company reiterated its target to generate free cash flow of 11 to 12 percent of sales and its plan for capital expenditure of 8 to 9 percent of revenue.

“You’ve got to say this is a negative short to middle term,” Glocer said of the financial crisis at a London investor day, but added that banking consolidation would present a chance.

“There’s a lot of compensating work that needs to be done now to stitch together all these trading operations,” he said, adding that the company’s legal and health professional product businesses would help the company weather the storm.

Thomson Reuters shares fell 1.7 percent in London by 12:08 a.m paydayloans. EDT, underperforming a 3.2 percent rise in the DJ European media index. They rose 0.6 percent to $27.26 in New York.

The stock trades at similar multiples as fellow professional publishers Reed Elsevier and Pearson and is more expensive than Wolters Kluwer, despite its greater exposure to financial services customers. 

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