Pitney Bowes Inc. (PBI) announced plans to cut up to 10% of its
work force as the mail and document-management company deals with
"a rapidly changing environment."
The company's revenue has declined in the past year as customers
delayed orders during the recession. Pitney Bowes on Tuesday
reiterated its 2009 profit target and gave a 2010 view, excluding
charges, of $2.30 to $2.50 a share as Chairman and Chief Executive
Murray Martin said, "Business and economic conditions continue to
evolve" for its customers.
Analysts polled by Thomson Reuters forecast, on average earnings
of $2.41 a share.
Pitney Bowes said it expects to save up $200 million annually by
2012 from the downsizing. The company now employs about 25,000
people and estimates the restructuring will result in pre-tax costs
of $250 million to $350 million.
Last month, Pitney Bowes reported third-quarter profit rose 5.1%
on lower restructuring charges and write-downs, although revenue
fell.
Shares rose 3 cents to $23.50 in early trading Tuesday.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;