DOW JONES NEWSWIRES
Pitney Bowes Inc.'s (PBI) fourth-quarter profit climbed 33% on
prior-year restructuring costs as the company noted improvements in
its markets and a slowing decline in U.S. mail volumes.
Shares rose 3.9% to $22.13 in after-hours trading as the mail
and document-management company's earnings topped Wall Street's
expectations. But revenue was below estimates for the company,
which earlier Thursday raised its dividend 1.4%.
President and Chief Executive Murray Martin pointed to some
early signs of improved economic activity, including a bigger
backlog of orders in the production mail business and an 11%
increase in software billings for large transactions.
Pitney's revenue fell last year, as customers delayed orders
during the economic slowdown. The company, which also faces the
challenge of declining mail use in favor of email and other
communication methods, has trimmed jobs and restructured to cut
costs.
For the latest quarter, Pitney reported a profit of $98.6
million, or 47 cents a share, up from $74 million, or 36 cents a
share, a year earlier. Excluding items such as the restructuring
costs, earnings fell to 64 cents from 77 cents.
Revenue slid 6.3% to $1.45 billion and fell 9% excluding changes
in currency values.
Analysts estimated earnings of 61 cents on revenue of $1.46
billion, according to a poll by Thomson Reuters.
U.S. mailing revenue declined 11%, while it dropped 4%
internationally, where Pitney generates half the revenue it does
domestically. Equipment sales fell 15%.
The company also reiterated its 2010 forecast.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
kathy.shwiff@dowjones.com