Reed Elsevier reported a 13 % increase in revenue on Thursday and predicted that double digit earnings per share growth would be achievable this year despite the down turn in the business advertising market. Reed warned that the second half of the year would probably prove harder as demand for advertising in the US, where Reed generates the majority of its revenue, had continued to fall. However, Reed is hoping that the slowdown will be offset by growth in its core science, legal, educational and medical businesses and the cost cutting initiatives which have saved £85m in the last six months. Reed, under chief executive Crispin Davis, also completed the acquisition of Harcourt General, it's main US rival, for $4.5bn, which it hopes will result in annual cost savings of $45m within the next 18 months. Davis said: "The first half of 2001 has seen improving trends and continued good progress in the execution of our strategy for growth. With the addition of the Harcourt businesses, we now believe that double digit earnings growth per share is achievable in 2001."
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