Further to our January announcement, Pearson PLC announces an agreement to sell a 22% stake in the Penguin Random House Venture to our partner Bertelsmann SE & Co KGaA and recapitalise the business. The transaction is in line with our strategy and allows us to generate net proceeds of approximately $1 billion, strengthen our balance sheet, return £300m of surplus capital to shareholders via a share buyback and maintain a significant income stream from an ongoing 25% stake in the world’s leading consumer publisher. This transaction values the Penguin Random House Venture at an enterprise value of $3.55 billion. The formation of PRH in 2013 created the first truly global consumer book publishing company, with a significant market share lead over its nearest competitors. Over the last four years PRH has enjoyed significant creative and commercial success and delivered more than $150m in annualised integration benefits, increasing profit and margins and creating significant value for both partners. Click Read More below for additional detail.
•Second quarter net revenue of $25.5 billion
•Second quarter non-GAAP diluted net earnings per share of $0.87, versus the previously provided outlook of $0.84 to $0.88 per share
•Second quarter GAAP diluted net earnings per share of $0.55, versus the previously provided outlook of $0.57 to $0.61 per share
•Second quarter cash flow from operations of $1.5 billion
•Returned $950 million to shareholders in the form of share repurchases and dividends in the second quarter
HP today announced financial results for its fiscal 2015 second quarter ended April 30, 2015.
Second quarter net revenue of $25.5 billion was down 7% from the prior-year period and down 2% on a constant currency basis.
Second quarter GAAP diluted net earnings per share (EPS) was $0.55, down from $0.66 in the prior-year period and below its previously provided outlook of $0.57 to $0.61. Second quarter non-GAAP diluted net EPS was $0.87, down from $0.88 in the prior-year period and within its previously provided outlook of $0.84 to $0.88. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax costs of $585 million and $0.32 per diluted share, respectively, related to separation costs, restructuring charges, the amortization of intangible assets and acquisition-related charges.
HP provided an update on its planned separation into two independent, Fortune 50 companies. The separation remains on track and the company expects associated dis-synergies of approximately $400 to $450 million.
The company also announced new future leadership appointments for both companies: Cathie Lesjak will become Chief Financial Officer of HP Inc. Lesjak’s deep expertise will best serve Dion and his team as they embark on creating a new company. With Lesjak’s move to HP Inc., Tim Stonesifer will become CFO of Hewlett Packard Enterprise. Stonesifer currently serves as CFO of HP’s Enterprise Group. Prior to joining HP, Stonesifer served as CFO for General Motors International Operations based in Shanghai, and held a number of finance leadership positions during his twenty-year tenure at General Electric Company.
Chris Hsu has been selected to become Chief Operating Officer at Hewlett Packard Enterprise. Hsu has proven strength in driving performance optimization across a number of key business areas, including real estate, indirect procurement, and business process improvement. As Chief Operating Officer, Hsu will expand his duties to oversee and manage the continued separation execution, as well as HP Financial Services.
Alan May will join Hewlett Packard Enterprise as Head of Human Resources. Most recently, May worked for the Boeing Company as head of HR for their commercial airplanes division. He also led HR for Boeing Defense, Space and Security and served as head of Strategy, Compensation and Benefits for the Company. Prior to Boeing, May spent many years at PepsiCo. in various global HR and business integration leadership roles.