Thomson Reports Fourth-Quarter and Full-Year 2007 Results



    
    - Milestone year marked by strong growth, operating performance and
    strategic repositioning of portfolio through sale of Thomson Learning and
    proposed acquisition of Reuters

    - Double-digit increases in full-year and fourth-quarter revenue and EPS
    reflects strong momentum entering new year

    - Board approves 10% dividend increase, third consecutive year of double-
    digit dividend growth

    (All amounts are in U.S. dollars)
    

    STAMFORD, Conn., Feb. 7 /CNW/ -- The Thomson Corporation (NYSE:   TOC; TSX:
TOC), a leading provider of information solutions to business and professional
customers worldwide, today reported that 2007 revenues increased 11%, to $7.3
billion, and 2007 operating profit increased 4%, to $1.3 billion. Underlying
operating profit grew 14% excluding special items (see note below in
Consolidated Financial Highlights). Fourth-quarter revenues increased 10%, to
$2.0 billion, and, while operating profit declined 3%, underlying operating
profit increased 8%. In the fourth quarter, diluted earnings per share
increased to $0.67, from $0.61 in the prior year period.
    
    (Logo:  http://www.newscom.com/cgi-bin/prnh/20020227/NYW014LOGO )
    
    "The fourth quarter was a strong finish to a milestone year in which we
delivered strong growth and operating performance while repositioning our
portfolio through the sale of Thomson Learning and the proposed acquisition of
Reuters," said Richard J. Harrington, Thomson President and Chief Executive
Officer. "We were particularly pleased with our 2007 organic revenue growth
rates of 7% at Legal and 10% at Tax and Accounting. Thomson Financial recorded
fourth-quarter organic revenue growth of 6% and achieved very strong sales,
while continuing to advance the integration planning associated with the
proposed Reuters acquisition."
    "Our results reflect our success in developing critical information
solutions and decision-support tools that enhance our business and
professional customers' productivity," said Mr. Harrington. "Among our
initiatives to expand our global footprint in 2007 were the launch of a
Japanese version of Thomson ONE and the establishment of online legal
businesses in Japan and China."
    "Thomson solutions such as Westlaw, FindLaw, Thomson ONE, Checkpoint, Web
of Science and Medstat remain at the core of our customers' day-to-day
operations," Mr. Harrington said. "We also continued to drive operational
efficiency and effectiveness across the company, which contributed to double-
digit underlying operating profit growth for the year."
    "I remain convinced that our acquisition of Reuters will be approved
given the complementary nature of our businesses, and I continue to expect the
transaction to close early in the second quarter," said Mr. Harrington.
"Integration planning efforts are proceeding on course. At the same time, our
plans to streamline our operations and improve efficiencies at Thomson, which
we began in 2006 and which will be completed ahead of schedule, have put us in
a strong position for the successful integration of Reuters."
    "After the acquisition closes, Thomson Reuters will be the leading global
provider of information and related applications to knowledge workers who need
intelligent information to fulfill their professional obligations and do their
jobs successfully," said Mr. Harrington.
    "As we enter a time of economic uncertainty, I believe Thomson has never
been stronger, strategically, financially and operationally," Mr. Harrington
said.
    
    Proposed Acquisition of Reuters Group PLC
    
    Thomson is confident that its proposed acquisition of Reuters Group PLC
will be approved by the European Commission, U.S. Department of Justice and
Canadian Competition Bureau in the next few weeks, and the transaction is
expected to be completed early in the second quarter of 2008. When the
acquisition closes, Thomson Reuters will be the global leader in electronic
information services, trading systems and news. For the last several months,
Thomson and Reuters have been working closely on permitted integration
planning initiatives to ensure that the right organization is in place when
the transaction closes.
    Thomson plans to provide a 2008 outlook when it reports first quarter
earnings on May 1, 2008.
    
    Consolidated Financial Highlights
    
    Note:  Underlying operating profit for 2007 excludes the following
special items.
    For the year 2007:  Investment in THOMSONplus efficiency initiatives in
both periods ($153 million for 2007 and $60 million for 2006), Reuters
acquisition costs of $76 million and the benefit of a $34 million gain on the
settlement of a pension plan.
    For the fourth quarter 2007: Investment in THOMSONplus efficiency
initiatives in both periods ($68 million for Q4 2007 and $29 million for Q4
2006), Reuters acquisition costs of $45 million and the benefit of a $34
million gain on the settlement of a pension plan.

    
    Fourth Quarter 2007
    -- Revenues increased 10%, to $2.0 billion, led by strong growth in the
       Legal, Financial, Tax & Accounting and Scientific business segments.
       Organic revenue growth was 6%.
    

    
    -- Operating profit decreased 3%, to $410 million in the fourth quarter.
       Operating profit margin was 20.2%, compared with 22.8% in the prior-
       year period. Underlying operating profit increased 8% and the
       underlying operating margin was 24.1%, compared with 24.4% in the
       fourth quarter of 2006.  This decline was primarily due to the initial
       dilutive impact from acquisitions and the timing of expenses.
    

    
    -- Earnings attributable to common shares were $432 million, or $0.67
       diluted earnings per share, compared to $390 million, or $0.61 diluted
       earnings per share, in the fourth quarter of 2006. Adjusted earnings
       for the period were $384 million, or $0.60 per share, compared with
       $320 million, or $0.50 per share, in the prior-year period, after
       adjusting for discontinued operations, costs related to the proposed
       Reuters transaction, other expenses, the gain on the settlement of a
       pension plan, tax expenses associated with these items, and the
       normalization of the tax rate.
    


    
    For the Full Year 2007
    -- Revenues increased 11%, to $7.3 billion, driven by strong growth across
       all business segments. Organic revenue growth was 6%.
    

    
    -- Operating profit increased 4%, to $1.3 billion. Operating profit margin
       was 17.8% compared with 18.9% in 2006. Underlying operating profit
       increased 14%, to $1.5 billion, and underlying operating profit margin
       increased 60 basis points, to 20.4%.
    

    
    -- Earnings attributable to common shares were $4.0 billion, or $6.20
       diluted earnings per share, compared to $1.1 billion, or $1.73 diluted
       earnings per share, in 2006. Earnings in 2007 included $2.9 billion
       related to discontinued operations, net of tax, primarily related to
       the gain from the sale of Thomson Learning's higher education assets,
       completed in the third quarter. Adjusted earnings were $1.1 billion, or
       $1.69 per share, compared with $857 million, or $1.33 per share, in
       2006, after adjusting for the items noted above.
    

    
    -- Net cash provided by operations was $1.8 billion, compared with $2.1
       billion in 2006. Free cash flow was $1.1 billion, compared with $1.4
       billion in 2006, reflecting discontinued operations, interest income
       earned on the proceeds from the sale of Thomson Learning, and the
       special items. Excluding these, free cash flow increased 12%.
    


    
    Fourth Quarter and Full Year Operational Highlights
    -- In 2007, approximately 82% of revenue was derived from electronic,
       software and services which grew 13%, and more than 80% of revenue was
       recurring in nature.
    

    
    -- In October 2007, Thomson Financial announced a strategic partnership
       with nine of the world's leading global dealers to further expand
       electronic trading using the TradeWeb platform. This partnership will
       help to drive the expansion of electronic trading, utilizing TradeWeb's
       leading multi-dealer-to-client marketplace for fixed income and
       derivatives to create a global multi-asset class execution venue for
       clients. In January 2008, the dealers invested approximately $180
       million to purchase a 15% stake in TradeWeb's established markets. In
       addition, Thomson and the dealers agreed to fund additional investment
       in order to expand the TradeWeb platform to new asset classes,
       including equities and derivatives, such as interest rate and credit
       default swaps.
    

    
    -- Thomson's accelerated efforts to increase operational efficiency
       through a series of initiatives (THOMSONplus) continued in the fourth
       quarter. As a result, at the end of the fourth quarter, Thomson
       achieved annualized run-rate savings of $120 million, investing $153
       million in 2007. The aggregate amount expected to be spent on
       THOMSONplus remains unchanged at $250 million. However Thomson expects
       to achieve annualized run-rate savings of $160 million by the middle of
       2008, six months ahead of schedule, and in excess of its original
       target of $150 million.
    


    Fourth Quarter and Full-Year Business Segment Highlights

    Legal

    
    -- Revenues increased 10% in both the fourth quarter and full year, to
       $875 million and $3.3 billion, respectively. Organic revenue growth was
       7% for both the fourth quarter and full year 2007, with acquisitions
       contributing 1% and foreign exchange adding 2% in each period.
    

    
    -- In the fourth quarter, organic revenue growth was driven by Westlaw,
       which increased 8%, with solid growth across all customer segments,
       including strong demand for Westlaw Litigator and FindLaw. Revenues
       from the segment's international online legal business grew at a
       double-digit rate for the third consecutive quarter.
    

    
    -- Fourth-quarter segment operating profit grew 7%, to $272 million.
       Operating profit growth reflected investments in developing online
       legal businesses in Japan and China, and some expense timing. As a
       result, operating margin for the quarter decreased 100 basis points, to
       31.1%.
    

    
    -- For the full year, operating profit grew 11%, with the related margin
       increasing 20 basis points, to 31.5%.
    


    
    Financial
    -- Fourth-quarter revenues grew 9%, to $575 million, with organic growth
       of 6%, acquisitions contributing 1%, and foreign exchange adding 2%.
       Organic revenue growth was driven by strength across multiple customer
       segments, including Investment Management, Omgeo and Corporate
       Services. Investment Management growth was driven by continued demand
       for Thomson ONE and StreetEvents. International growth was also strong
       as Europe and Asia each recorded double-digit organic revenue
       increases.
    

    
    -- For the full year, revenues grew 8%, to $2.2 billion. Organic growth
       was 5%, acquisitions added 1%, and foreign exchange contributed 2%.
    

    
    -- Fourth-quarter segment operating profit grew 22%, to $135 million, and
       the related margin increased 250 basis points, to 23.5%, driven by
       strong revenue growth, operating efficiency initiatives and
       integration-related savings.
    

    
    -- For the full year 2007, operating profit increased 19%, to $454
       million, with operating margins increasing 200 basis points, to 20.8%.
    


    
    Tax & Accounting
    -- Fourth-quarter revenues increased 18%, to $248 million. Organic
       revenues grew 8% in the quarter, and growth from acquisitions was 10%.
       Tax and Accounting's revenue growth in the quarter benefited from the
       successful integration of its CrossBorder Solutions and Deloitte
       Property Tax Services acquisitions. Organic revenue growth in the
       quarter was due to strong performances from Checkpoint and core
       software products targeted to accountants and corporations, including
       UltraTax and InSource, reflecting strong new sales and high retention
       rates.
    

    
    -- For the full-year 2007, revenues rose 18%, to $705 million, with
       organic revenues up 10% and acquisitions adding 8%.
    

    
    -- Fourth-quarter segment operating profit declined, as expected, by 6%,
       to $89 million, primarily due to the dilutive effect of several
       acquisitions largely caused by the initial accounting for revenue. In
       total, acquisitions affected fourth-quarter margins by roughly 600
       basis points, leading to a decline in the operating margin in the
       quarter to 35.9%, compared with 45% in the prior-year period. As the
       business integrates these acquisitions in 2008 and the requisite
       accounting treatment is normalized, the operating margin is expected to
       return to historical averages by the end of 2008.
    

    
    -- For the full year, operating profit increased 10% to $184 million,
       while operating profit margin decreased 200 basis points, to 26.1%, due
       to the dilutive effect of acquisitions mentioned above.
    


    
    Scientific
    -- For the fourth quarter, revenues grew 11%, to $180 million, with
       organic growth of 5%, acquisitions adding 4%, and foreign exchange
       adding 2%. Organic revenue was driven by strong growth from information
       solutions, led by ISI Web of Knowledge and Web of Science, and
       solutions targeted to corporate customers. Software solutions also
       contributed solid organic growth in the quarter. Revenue growth was
       partly offset by declines in legacy online products.
    

    
    -- For the full year, revenues grew 8% to $651 million. Organic growth was
       4%, acquisitions contributed 2%, and foreign exchange 2%.
    

    
    -- Segment operating profit in the quarter increased 20%, to $55 million,
       while operating margin increased 220 basis points, to 30.6%, compared
       with the prior year. Fourth-quarter operating income growth was mainly
       due to the flow-through of increased revenue and efficiency savings.
    

    
    -- For 2007, operating profit grew 16% to $175 million, compared to 2006,
       with the related margin increasing 180 basis points, to 26.9%.
    


    
    Healthcare
    -- Fourth-quarter revenues were $158 million, unchanged from the prior-
       year period.  The Payer segment (25% of total revenue) was up 8%,
       reflecting strong renewals and new business, and, the Provider segment
       (40% of total revenue) was up 13% led by Solucient.  However, a decline
       in PDR (Physicians' Desk Reference) revenue offset revenue growth in
       the Payer and Provider segments, as well as 3% growth attributable to
       acquisitions.
    

    
    -- For the full year, revenue increased 21%, to $452 million, entirely
       from acquisitions.
    

    
    -- For the quarter, segment operating profit decreased 7%, to $57 million,
       and the operating profit margin decreased 250 basis points, to 36.1%.
    

    
    -- For 2007, operating profit increased 5% to $85 million and the related
       margin decreased 290 basis points, to 18.8%.
    Corporate and Other
    
    Corporate and Other expenses in the fourth quarter were $131 million, a
$47 million increase, from $84 million in the prior-year period. The rise was
primarily due to a $39 million increase in investments in THOMSONplus-related
initiatives and $45 million of costs related to the proposed Reuters
transaction. These costs were offset, in part, by a $34 million gain on the
settlement of a pension plan.
    For the full year 2007, Corporate and Other expenses were $389 million, a
$154 million increase from $235 million in 2006. The rise was primarily due to
a $93 million increase in investments in THOMSONplus-related initiatives and
$76 million of costs related to the proposed Reuters transaction, offset in
part by the $34 million gain on the settlement of a pension plan.
    
    Discontinued Operations
    
    The gain on the sale of the Thomson Learning businesses accounted for the
majority of results in Discontinued Operations for the full year.
    
    Share Buyback Program
    
    Thomson repurchased shares under its buyback program (normal course
issuer bid) during November and December. Thomson temporarily suspended
repurchases prior to its announcement of the proposed Reuters acquisition in
May 2007. In the fourth quarter of 2007, Thomson repurchased approximately 2.4
million common shares, for a total cost of approximately $91 million. During
all of 2007, Thomson repurchased approximately 4.17 million common shares for
a total cost of approximately $167 million. As of February 1, 2008, Thomson
had approximately 638.9 million issued and outstanding common shares.
Decisions regarding the timing of future repurchases will be based on market
conditions, share price and other factors.  Thomson may elect to suspend or
discontinue the program at any time. Shares repurchased are cancelled.
    
    Dividend
    
    The Board of Directors approved an annual 2008 dividend of $1.08 per
common share, an increase of $0.10 per common share, or 10%, over 2007. The
new quarterly dividend rate of $0.27 per share is payable on March 17, 2008,
to common shareholders of record as of February 21, 2008. This marks the third
consecutive year of double-digit dividend growth.
    Over the course of 2008, Thomson's controlling shareholder, The
Woodbridge Company Limited, plans to reinvest the equivalent of 50% of the
dividends that it receives in the first three quarters of the year.
Woodbridge's dividend reinvestment in additional Thomson common shares will be
in accordance with the terms of Thomson's dividend reinvestment plan.
Woodbridge's reinvestment decision reinforces Thomson's commitment to a strong
capital structure and balance sheet.
    
    The Thomson Corporation
    
    The Thomson Corporation (www.thomson.com) is a global leader in providing
essential electronic workflow solutions to business and professional
customers. With operational headquarters in Stamford, Conn., Thomson provides
value-added information, software tools and applications to professionals in
the fields of law, tax, accounting, financial services, scientific research
and healthcare. The Corporation's common shares are listed on the New York and
Toronto stock exchanges (NYSE:   TOC; TSX: TOC).
    The Thomson Corporation will webcast a discussion of fourth-quarter and
full-year results beginning at 8:30 am ET today. To participate in the
webcast, please visit www.thomson.com and click the "Investor Relations" link
located at the top of the page.
    The Corporation's financial statements are prepared in accordance with
Canadian generally accepted accounting principles (GAAP) and are reported in
U.S. dollars. When applicable, prior periods are restated for discontinued
operations.
    This news release includes certain non-GAAP financial measures. We use
these non-GAAP financial measures as supplemental indicators of our operating
performance and financial position. These measures do not have any
standardized meanings prescribed by GAAP and therefore are unlikely to be
comparable to the calculation of similar measures used by other companies, and
should not be viewed as alternatives to measures of financial performance
calculated in accordance with GAAP. These non-GAAP financial measures are
defined and reconciled to the most directly comparable GAAP measures in the
following tables.
    
    CAUTIONARY NOTE CONCERNING FACTORS THAT MAY AFFECT FUTURE RESULTS
    
    This news release, in particular the discussion of the proposed
acquisition of Reuters, includes forward-looking statements. These statements
are based on certain assumptions and reflect the Corporation's current
expectations. Forward-looking statements also include statements about the
Corporation's beliefs and expectations related to its anticipated run-rate
savings and costs related to THOMSONplus as well as the timing for the
achievement of savings from the program, its beliefs that the Reuters
acquisition will be approved and close early in the second quarter, and that
its partnership with the global dealers will expand electronic trading using
TradeWeb. While Thomson believes that the proposed transaction with Reuters
will be approved by antitrust/competition authorities, there can be no
assurance that required approvals will be obtained, how long it will take to
obtain such approvals or what conditions, if any, such authorities may impose.
All forward-looking statements in this news release are subject to a number of
risks and uncertainties that could cause actual results or events to differ
materially from current expectations. These risks and uncertainties include
the failure of Reuters shareholders to approve the proposed transaction; the
effect of regulatory conditions, if any, imposed by regulatory authorities;
the reaction of Thomson's and Reuters' customers, employees and suppliers to
the proposed transaction; the ability to promptly and effectively integrate
the businesses of Thomson and Reuters after the transaction closes; and the
diversion of management time on transaction-related issues. Some of the other
factors that could cause actual results or events to differ materially from
current expectations are actions of competitors; failure to fully derive
anticipated benefits from acquisitions and divestitures; failure to develop
additional products and services to meet customers' needs, attract new
customers or expand into new geographic markets; and changes in the general
economy. In addition, Thomson does not control Woodbridge and Woodbridge is
not obligated to reinvest its dividends in Thomson shares. Additional factors
are discussed in the Corporation's materials filed with the securities
regulatory authorities in Canada and the United States from time to time,
including the Corporation's latest annual information form, which is also
contained in its most recently filed annual report on Form 40-F. The
Corporation disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, other than as required by applicable law, rule or
regulation.
    
    ADDITIONAL INFORMATION
    
    This document does not constitute an offer for sale of any securities or
an offer or an invitation to purchase any such securities.  Following
satisfaction or waiver of the pre-conditions to the proposed Reuters
transaction, documents relating to the proposed transaction will be furnished
to or filed with the SEC. Shareholders are urged to read such documents
regarding the proposed transaction if and when they become available, because
they will contain important information. Shareholders will be able to obtain
free copies of these documents, as well as other filings containing
information about the companies, without charge, at the SEC's website at
www.sec.gov, at the Canadian securities regulatory authorities' website at
www.sedar.com and from Thomson. These documents will also be available for
inspection and copying at the public reference room maintained by the SEC at
100 F Street, N.E., Washington, D.C. 20549, United States. For further
information about the public reference room, call the SEC at +1 800-732-0330.



    
                      Consolidated Statement of Earnings
           (millions of U.S. dollars, except per common share data)
                                 (unaudited)
    

    
                                 Three Months Ended        Twelve Months Ended
                                 ------------------        -------------------
                                     December 31,               December 31,
                                     ------------               ------------
                                  2007         2006         2007         2006
                                  ----         ----         ----         ----
    Revenues                     2,033        1,850        7,296        6,591
    Cost of sales, selling,
     marketing, general and
     administrative expenses    (1,436)      (1,250)      (5,275)      (4,665)
    Depreciation                  (120)        (116)        (468)        (438)
    Amortization                   (67)         (62)        (256)        (240)
                           ------------ ------------ ------------ ------------
    Operating profit               410          422        1,297        1,248
    Net other (expense) income     (40)         (35)         (34)           1
    Net interest income (expense)
     and other financing costs      52          (53)         (12)        (221)
    Income taxes                  (111)         (29)        (155)        (116)
                           ------------ ------------ ------------ ------------
    Earnings from continuing
     operations                    311          305        1,096          912
    Earnings from discontinued
     operations, net of tax        123           86        2,908          208
                           ------------ ------------ ------------ ------------
    Net earnings                   434          391        4,004        1,120
    Dividends declared on
     preference shares              (2)          (1)          (6)          (5)
                           ------------ ------------ ------------ ------------
    Earnings attributable to
     common shares                 432          390        3,998        1,115
    

    
    Basic earnings per
     common share                $0.67        $0.61        $6.24        $1.73
                           ============ ============ ============ ============
    Diluted earnings per
     common share                $0.67        $0.61        $6.20        $1.73
                           ============ ============ ============ ============
    Basic weighted average
     common shares         641,393,907  641,551,065  641,157,718  644,131,524
                           ============ ============ ============ ============
    Diluted weighted average
     common shares         644,516,692  643,936,859  644,430,796  646,026,345
                           ============ ============ ============ ============
    



    
         Reconciliation of Earnings Attributable to Common Shares to
               Adjusted Earnings from Continuing Operations(1)
           (millions of U.S. dollars, except per common share data)
                                 (unaudited)
    

    
                                             Three Months       Twelve Months
                                             ------------       -------------
                                                 Ended               Ended
                                                 -----               -----
                                              December 31,        December 31,
                                              ------------        ------------
                                             2007    2006       2007     2006
                                             ----    ----       ----     ----
    Earnings attributable to common shares    432     390      3,998    1,115
    Adjustments:
     One-time items:
      Net other expense (income)               40      35         34       (1)
      Reuters transaction costs                45       -         76        -
      Settlement of pension plan              (34)      -        (34)       -
      Tax on above items                       (9)    (15)       (17)     (16)
      Tax charges (benefits)                    1     (12)       (60)     (33)
     Interim period effective tax rate
      normalization (2)                        32       8          -        -
     Discontinued operations, net of tax     (123)    (86)    (2,908)    (208)
                                            ------  ------    -------   ------
    Adjusted earnings from continuing
     operations                               384     320      1,089      857
                                            ======  ======    =======   ======
    Adjusted diluted earnings per common
     share from continuing operations       $0.60   $0.50      $1.69    $1.33
                                            ======  ======    =======   ======
    


    
    Notes
    (1) Adjusted earnings from continuing operations and adjusted earnings per
        common share from continuing operations are earnings attributable to
        common shares and per share amounts after adjusting for non-recurring
        items, discontinued operations, and other items affecting
        comparability.  Thomson uses these measures to assist in comparisons
        from one period to another.  Adjusted earnings per common share from
        continuing operations do not represent actual earnings per share
        attributable to shareholders.
    (2) Adjustment to reflect income taxes based on the estimated full-year
        effective tax rate of the consolidated group.  Reported earnings for
        interim periods reflect income taxes based on estimated effective tax
        rates of each of the group's jurisdictions.  The adjustment
        reallocates estimated full-year income taxes between interim periods,
        but has no effect on full-year income taxes.
    



    
     Reconciliation of Operating Profit to Underlying Operating Profit(1)
                          (millions of U.S. dollars)
                                 (unaudited)
    


    
                                             Three Months       Twelve Months
                                             ------------       -------------
                                                 Ended               Ended
                                                 -----               -----
                                              December 31,        December 31,
                                              ------------        ------------
                                             2007    2006       2007     2006
                                             ----    ----       ----     ----
    Operating profit                          410     422      1,297    1,248
    Adjustments:
     THOMSONplus costs                         68      29        153       60
     Reuters transaction costs                 45       -         76        -
     Settlement of pension plan               (34)      -        (34)       -
                                            ------  ------     ------   ------
    Underlying operating profit               489     451      1,492    1,308
                                            ======  ======     ======   ======
    Underlying operating profit margin       24.1%   24.4%      20.4%    19.8%
                                            ======  ======     ======   ======
    


    
    Notes
    (1) Underlying operating profit is operating profit adjusted for items
        affecting comparability and costs associated with Thomson's corporate
        efficiency initiatives.  Underlying operating profit margin is the
        underlying operating profit expressed as a percentage of revenues.
        Thomson uses these measures to assist in comparisons from one period
        to another.  Thomson's definition of underlying operating profit may
        not be directly comparable to that of another company.
    



    
                          Consolidated Balance Sheet
                          (millions of U.S. dollars)
                                 (unaudited)
    


    
                                                    December 31,  December 31,
                                                        2007           2006
                                                    --------------------------
    Assets
    Cash and cash equivalents                          7,497            334
    Accounts receivable, net of allowances             1,565          1,364
    Prepaid expenses and other current assets            508            368
    Deferred income taxes                                104            153
    Current assets of discontinued operations              4          1,046
                                                    --------------------------
    Current assets                                     9,678          3,265
    

    
    Computer hardware and other property, net            731            624
    Computer software, net                               721            647
    Identifiable intangible assets, net                3,438          3,451
    Goodwill                                           6,935          6,538
    Other non-current assets                           1,322          1,092
    Non-current assets of discontinued operations          6          4,525
                                                    --------------------------
    Total assets                                      22,831         20,142
                                                    ==========================
    

    
    Liabilities and shareholders' equity
    Liabilities
    Short-term indebtedness                              183            333
    Accounts payable and accruals                      1,532          1,305
    Deferred revenue                                   1,108            954
    Current portion of long-term debt                    412            264
    Current liabilities of discontinued operations         4            883
                                                    --------------------------
    Current liabilities                                3,239          3,739
    

    
    Long-term debt                                     4,264          3,681
    Other non-current liabilities                        783            785
    Deferred income taxes                                974          1,007
    Non-current liabilities of discontinued operations     -            449
                                                    --------------------------
    Total liabilities                                  9,260          9,661
    

    
    Shareholders' equity
    Capital                                            2,932          2,799
    Retained earnings                                 10,355          7,169
    Accumulated other comprehensive income               284            513
                                                    --------------------------
    Total shareholders' equity                        13,571         10,481
                                                    --------------------------
    Total liabilities and shareholders' equity        22,831         20,142
                                                    ==========================
    



    
                     Consolidated Statement of Cash Flow
                          (millions of U.S. dollars)
                                 (unaudited)
    


    
                                       Three Months Ended  Twelve Months Ended
                                       ------------------  -------------------
                                            December 31,        December 31,
                                            ------------        ------------
                                           2007     2006      2007      2006
                                         ----------------    ----------------
    Cash provided by (used in):
    Operating activities
    Net earnings                            434      391     4,004     1,120
    Remove earnings from discontinued
     operations                            (123)     (86)   (2,908)     (208)
    Add back (deduct) items not involving
     cash:
     Depreciation                           120      116       468       438
     Amortization                            67       62       256       240
     Net gains on disposals of
       businesses and investments             -       (3)       (8)      (47)
     Deferred income taxes                  (54)    (118)     (124)     (121)
     Other, net                              58       39       258       204
    Pension contributions                     -      (14)       (3)      (23)
    Changes in working capital and other
     items                                   71      101      (133)      (50)
    Cash provided by operating
     activities - discontinued
     operations                              86      308         6       572
                                         ----------------    ----------------
    Net cash provided by operating
     activities                             659      796     1,816     2,125
                                         ----------------    ----------------
    

    
    Investing activities
    Acquisitions                           (173)    (336)     (488)     (744)
    Proceeds from disposals                   7       28        18        88
    Capital expenditures,
     less proceeds from disposals          (225)    (182)     (608)     (452)
    Other investing activities               (4)       -       (37)      (26)
    Capital expenditures of discontinued
     operations                               -      (55)      (97)     (185)
    Other investing activities of
     discontinued operations                  -       (4)       (2)      (17)
    Proceeds from disposals of discontinued
     operations, net of income taxes paid  (899)     (24)    7,151        81
    Acquisitions by discontinued operations   -        -       (54)      (35)
                                         ----------------    ----------------
    Net cash (used in) provided by
     investing activities                (1,294)    (573)    5,883    (1,290)
                                         ----------------    ----------------
    Financing activities
    Proceeds from debt                      794        -       794         -
    Repayments of debt                        -      (15)     (249)      (88)
    Net borrowings (repayments) under
     short-term loan facilities             190     (191)     (180)      108
    Premium on foreign currency hedge         -        -       (76)        -
    Repurchase of common shares             (93)     (54)     (168)     (412)
    Dividends paid on preference shares      (2)      (1)       (6)       (5)
    Dividends paid on common shares        (153)    (138)     (612)     (553)
    Other financing activities, net          14       17        33        38
                                         ----------------    ----------------
    Net cash provided by (used in)
     financing activities                   750     (382)     (464)     (912)
                                         ----------------    ----------------
    

    
    Translation adjustments                 (73)       2       (72)        4
                                         ----------------    ----------------
    Increase (decrease) in cash and cash
     equivalents                             42     (157)    7,163       (73)
    Cash and cash equivalents at
     beginning of period                  7,455      491       334       407
                                         ----------------    ----------------
    Cash and cash equivalents at
     end of period                        7,497      334     7,497       334
                                         ----------------    ----------------
    


    Reconciliation of Net Cash Provided by Operating Activities to Free Cash
    
                                   Flow(1)
                        And Analysis of Free Cash Flow
                          (millions of U.S. dollars)
                                 (unaudited)
    

    
                                        Three Months Ended Twelve Months Ended
                                        ------------------ -------------------
                                              December 31,      December 31,
                                              ------------      ------------
                                             2007     2006     2007     2006
                                             ----     ----     ----     ----
    Net cash provided by operating
     activities                                659      796    1,816    2,125
    Capital expenditures                      (225)    (182)    (608)    (452)
    Other investing activities                  (4)       -      (37)     (26)
    Capital expenditures of discontinued
     operations                                  -      (55)     (97)    (185)
    Other investing activities of discontinued
     operations                                  -       (4)      (2)     (17)
    Dividends paid on preference shares         (2)      (1)      (6)      (5)
                                              --------------------------------
    Free cash flow                             428      554    1,066    1,440
    Items affecting comparability:
    Cash used in (provided by) operating and
     investing activities of discontinued
     operations                                (86)    (249)      93     (370)
    Interest on proceeds from sale of
     Thomson Learning, net of taxes            (86)       -     (155)       -
    Spending on THOMSONplus initiatives         44       30      162       69
    Spending on Reuters related costs           47        -       73        -
    Settlement of lawsuit                        -        -       36        -
                                              --------------------------------
                                               347      335    1,275    1,139
                                              ================================
    

    
    Notes
    (1) Free cash flow is net cash provided by operating activities less
        capital expenditures, other investing activities and dividends paid on
        preference shares.  Thomson uses free cash flow as a performance
        measure because it represents cash available to repay debt, pay common
        dividends and fund new acquisitions.
    



    
                         Business Segment Information
                          (millions of U.S. dollars)
                                 (unaudited)
    

    
                               Three Months Ended         Twelve Months Ended
                               ------------------         -------------------
                                   December 31,               December 31,
                                   ------------               ------------
                             2007      2006   Change    2007      2006  Change
                             ----      ----   ------    ----      ----  ------
    

    
    Revenues:
     Legal                    875       795     10%    3,318     3,008     10%
     Financial                575       528      9%    2,186     2,025      8%
     Tax & Accounting         248       211     18%      705       598     18%
     Scientific               180       162     11%      651       602      8%
     Healthcare               158       158      0%      452       374     21%
     Intercompany
      eliminations             (3)       (4)             (16)      (16)
                           -------   -------          -------   -------
     Total revenues         2,033     1,850     10%    7,296     6,591     11%
                           =======   =======          =======   =======
    Operating Profit:
     Segment operating profit
      Legal                   272       255      7%    1,044       943     11%
      Financial               135       111     22%      454       380     19%
      Tax & Accounting         89        95     -6%      184       168     10%
      Scientific               55        46     20%      175       151     16%
      Healthcare               57        61     -7%       85        81      5%
      Corporate and
       other (1)             (131)      (84)            (389)     (235)
                           -------   -------          -------   -------
     Total segment operating
      profit                  477       484     -1%    1,553     1,488      4%
     Amortization             (67)      (62)            (256)     (240)
     Operating profit         410       422     -3%    1,297     1,248      4%
                           =======   =======          =======   =======
    


    
    Notes
     (1) Corporate and Other includes THOMSONplus costs, corporate costs,
         Reuters transaction costs and certain costs associated with the
         company's stock incentive and phantom stock plans.
    



    Detail of depreciation by segment:

    
                             Three Months Ended      Twelve Months Ended
                             ------------------      -------------------
                                December 31,              December 31,
                                ------------              ------------
                             2007         2006         2007         2006
                             ------------------        ------------------
    

    
    Legal                     (52)         (50)        (205)        (187)
    Financial                 (42)         (45)        (172)        (180)
    Tax & Accounting           (6)          (5)         (21)         (22)
    Scientific                 (9)          (7)         (32)         (23)
    Healthcare                 (7)          (5)         (24)         (16)
    Corporate and Other        (4)          (4)         (14)         (10)
                             ------------------        ------------------
                             (120)        (116)        (468)        (438)
                             ==================        ==================
    




For further information:

For further information: Media: Fred Hawrysh, Global Director, External 
Communications, +1-203-539-8314, fred.hawrysh@thomson.com, Investor: Frank J. 
Golden, Vice President, Investor Relations, +1-203-539-8470, 
frank.golden@thomson.com Web Site: http://www.thomson.com

Organization Profile

THE THOMSON CORPORATION

More on this organization

News - Media

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890