Dutch publisher Wolters Kluwer (WKL.AE) said Wednesday second half net profit fell 3.4% partly due to volume declines in some of its key markets and cost-savings measures, and abstained from giving revenue guidance for 2009, though the company said profitability had improved.

"Market contractions were felt in all geographies" and "we anticipate economic conditions will remain weak during 2009," said Chief Executive Nancy Mckinstry.

Wolters Kluwer, which publishes educational books, legal and financial information and medical publications, said net profit in the second half of 2008 fell to EUR169 million from EUR175 million a year earlier.

Operating profit was EUR271 million, down from EUR304 million, while profit from continuing operations was EUR171 million, down from EUR176 million.

Group sales rose 1.7% to EUR1.77 billion from EUR1.74 billion, partly due to several acquisitions last October.

However, Wolters Kluwer said Wednesday that organic revenue growth for the full year was flat, as the global economic decline resulted in lower volumes at its corporate and financial services division.

The slowdown in organic growth was in line with the company's forecast last November, when it lowered its growth guidance below its previous 3% rate. It also increased its annual cost savings target to EUR120 million in 2011, up from previous estimates of EUR50 million to EUR75 million.

However, McKinstry said that the company's profitability improved, pointing to a higher margin on earnings before interest, taxes and amortization, or Ebita, to 20.1% in 2008 from 19.5% a year earlier. McKinstry expects Wolter's 2009 Ebita margin to be "broadly in line" with 2008.

The company proposed a dividend of EUR0.65 a share for 2008, compared with EUR0.64 in 2007.

SNS Securities analyst Michel Veul described the report as "a mixed bag", as its results were in line with expectations, but organic growth seemed lower than at Reed Elsevier (REN.AE) and ThomsonReuters (TRIL.LN).

However, Petercam analyst Thijs Berkelder said the results are better than expected and noted that Wolters Kluwer is a defensive stock, expected to outperform during the economic slowdown.

Wolters Kluwer shares have fallen 33% in the past 12 months, outperforming the benchmark AEX index, which has fallen 52%.

At 1200 GMT, Wolter Kluwer's share traded -4.8% at EUR12.17.

Company Web Site: www.wolterskluwer.com

-By Maarten van Tartwijk; Dow Jones Newswires; +31 20 571 5221; maarten.vantartwijk@dowjones.com