An "unprecedented decline" in its US business has forced Pearson (PSON) to announce a major profit warning, it's fifth in four years. This update, alongside news that it would be cutting its dividend from 2017 onwards and selling its stake in book publisher Penguin Random House, wiped 28 per cent off the group's share price on Wednesday morning, putting it on course for its worst day ever on the market.
The education sector has had a tough time of late, particularly in the US, where a rise in textbook rentals alongside a decline in college student numbers, has hammered demand. Although Pearson has shifted its focus to digital products, critics would argue that it's too little too late as a third of sales still come from the traditional print and education business.
