Education and publishing company Pearson PLC reported a 46% jump in 2009 net profit to £425 million ($648 million) Monday, boosted by an education business that CEO Marjorie Scardino says could be helped further by U.S. President Barack Obama's push for common state standards in math and reading.
Pearson's North American education division, which comprises the company's largest business and includes Prentice Hall, reported £2.47 billion in sales for 2009, a 5% increase at constant exchange rates.
Overall, the company reported £5.62 billion in sales, up 4% at constant exchange rates from £4.81 billion last year.
The education division's growth could be boosted in the U.S. in the coming year as 48 states develop common core education standards for math and language arts as part of a voluntary state-led effort encouraged by the White House, Ms. Scardino said.
The implementation of core standards would reduce the burden Pearson faces in adapting materials to individual state requirements. It could also open up an opportunity for Pearson to win a new contract measuring the progress of that common-standards initiative. The degree to which Pearson will reap benefits depends on how many states ultimately opt into the common standards and how specific they are.
Ms. Scardino said Pearson could also benefit from $4.35 billion in "Race to the Top" grants the Obama administration will begin distributing to states this year for education innovation and reform. Data systems that measure student success, one of Pearson's key product areas, are an emphasis of the grant plan.
Pearson also raised its dividend 5%.
Separately, Pearson's business newspaper, the Financial Times, named Gillian Tett, as its new U.S. managing editor, succeeding Chrystia Freeland, who is leaving to take a top job at Thomson Reuters Corp. Ms. Tett had been assistant editor for the paper's markets desk.
The FT Group, which includes the Financial Times and information company Interactive Data Corp., reported sales of £842 million, down 3% at constant exchange rates, and an adjusted operating profit of £187 million, down 12% at constant exchange rates. Interactive Data is under strategic review, and analysts say it may be sold.
Though Ms. Scardino declined to comment on a possible sale of Interactive Data, owned about 61% by Pearson, people familiar with the situation said the company has short-listed four groups for the second-round of bidding.
Due diligence will start this week for the short-listed bidders, a person familiar with the matter said, with management presentations expected next week.
Pearson's fastest growing division, international education—where revenue from emerging markets has more than doubled since 2005—saw sales jump 13% at constant exchange rates to £1.035 billion. Ms. Scardino says she hopes to expand the Pearson's English-language teaching operation, which now includes about 70 English-language schools Pearson runs in China.
Penguin, whose U.S. best sellers included Kathryn Stockett's "The Help," reported sales of £1.002 billion for the year, down 1% at constant exchange rates, and adjusted operating profit of £84 million, down 17% at constant exchange rates.
Though the outlook for the publishing industry remains flat, Penguin has signed on to participate in Apple Inc.'s new online bookstore. Ms. Scardino expects the iPad and similar devices to drive rapid growth in e-book sales in the coming year. Next year marks the publisher's 75th anniversary, which will offer a publicity opportunity.
—Marietta Cauchi and Jessica Hodgson contributed to this article Write to Paul Sonne at paul.sonne@wsj.com