Thomson Reuters Q3 profit beats forecast

By Robert MacMillan

NEW YORK (Reuters) - Thomson Reuters Corp (TRI.TO) (TRI.N) reported a decline in quarterly revenue in its markets and legal businesses, but its chief executive said sales were improving and the company affirmed its previous outlook.

The news and financial data publisher, whose shares were down less than 1 percent, reported third-quarter profit that beat Wall Street estimates, helped by foreign currency rates and cost cuts.

The company's financial institution and law firm customers have been cutting spending this year to cope with the financial crisis and economic recession.

"While the weak year-to-date net sales experienced in recent quarters are now flowing through into revenues, we expect this dip to be shallow and limited to the next few quarters," Chief Executive Thomas Glocer said in a statement.

"We think our markets are improving and our results in the business in the third quarter were better than the second, and we think that's a trend that continues," Glocer told reporters on a call to discuss the results. "We are past the nadir."

Markets division revenue fell 4 percent to $1.86 billion excluding currency in the third quarter. The legal unit, the largest part of the company's professional division by revenue and operating profit, posted a 1 percent decline in revenue.

Revenue from ongoing businesses, excluding the impact of foreign exchange rates, fell 2 percent to $3.21 billion. That compared to the average analyst forecast of $3.23 billion.

"Financial firms are watching costs and being very careful on spending money, so a lot of discretionary expenses regarding services are being cut back," said Benchmark Co analyst Edward Atorino.