Reuters chief executive Tom Glocer sees better times ahead

The UK firm, which was last year hit by record losses following a slump in demand, unveiled annual pre-tax profits of �190m ($358m).

The group's overall turnover fell 11% for the second year running.

But cost-cutting more than offset the drop, the company said, adding that it expects to make further savings in the months ahead.

US leads the way

Unadjusted pre-tax profits hit �49m, a turnaround from 2002's loss of �493m.

Chief executive Tom Glocer said: "Our full-year results show that Reuters is on the road to recovery, with the worst of our revenue declines behind us."

Reuters said its core subscription revenues, which make up the bulk of turnover, fell 10.2% - a touch better than forecast.

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Mr Glocer said demand in the US was leading the way, with recovery in Europe more tentative.

"It will have to get considerably better in a hurry for 2005 to be positive, but it's still possible," he said.

The company said it expected to deliver additional savings of around �145m in 2004, but said it would take a one-off charge of �125m.

Reuters plans to cut its core workforce to around 13,000 by early 2006. The company currently employs around 15,500 people.