Full year earnings for Pearson will be toward the top of analysts' forecast range, the educational publisher said, pointing to a strengthening dollar and audience growth at the Financial Times in the first nine months of 2008.

"We're naturally cautious about the global economic conditions but we have good trading momentum, innovative products, resilient businesses and a strong balance sheet," Marjorie Scardino, chief executive, said. "With those advantages, we believe we are in good shape to prosper and strengthen our company, even through these turbulent times." Analysts had forecast full year adjusted earnings per share of 46p to 52p, compared with 46.7p for 2007. Financial market turmoil and the US economy had caused questions on the resilience of US states' education budgets and of businesses serving the financial sector.

Pearson stuck to the forecasts it had made for each of its businesses at the end of the first half, saying sales were up 8 per cent for the first nine months and operating profits ahead by 11 per cent at constant exchange rates. The shares fell 8p to 551½p in a media sector down 4.4 per cent.

If currency movements continued to be favourable, the company said it expected full-year adjusted earnings per share to be "toward the top end" of expectations.

The group, which makes about 60 per cent of its sales in the US, saw the pound weaken from $1.99 to $1.83 in the third quarter. Each five cent move affects Pearson's adjusted EPS by about 1p.

The FT Group saw sales rise 11 per cent, led by an increase of 14 per cent at FT Publishing, which includes the Financial Times newspaper and FT.com. Sales at Penguin rose 3 per cent in the first nine months.

In a note, Patrick Wellington, analyst at Morgan Stanley, said the statement was "very positive", particularly the guidance of underlying revenue growth of about two to four per cent in North American education. He noted a healthy balance sheet with a ratio of 1.2 times net debt to earnings before interest, tax, depreciation and amortisation

An analyst, who asked not to be named, said: "If you compare this with McGraw Hill, which started out the year much more positively than Pearson and has had to downgrade expectations twice since, it is a reassuring picture of the US education market. The FT result is obviously trend-bucking, but the question is how long it will last."