DOW JONES NEWSWIRES
Pitney Bowes Inc.'s (PBI) fourth-quarter earnings fell 36% on
higher restructuring and write-down charges and lower revenue,
although adjusted results grew and exceeded analysts'
expectations.
Shares jumped 4.9% to $26.40 in after-hours trading.
The mail- and document-management company also forecast
full-year adjusted earnings from continuing operations of $2.15 to
$2.35 a share. Analysts polled by Thomson Reuters expected a profit
of $2.30.
Chairman and Chief Executive Murray D. Martin said equipment
sales improved for the second consecutive quarter on a consolidated
basis and in the company's global mailing operations.
Pitney Bowes has struggled lately, faced with falling revenue
and notable declines in its small to mid-sized customer base. In
December, Moody's Investors Service cut the long-term ratings on
Pitney Bowes based on ongoing weak performance over time, despite
several restructuring programs. This followed lowered outlooks from
peers Standard & Poor's Ratings Services and Fitch Ratings
earlier in 2010.
Equipment makers, concerned about a changing market, are
shifting toward cloud computing. Pitney Bowes is adapting its
business to off new cloud-friendly services, such as a cloud-based
mail delivery system.
Pitney Bowes reported a fourth-quarter profit of $63 million, or
31 cents a share, down from $98.6 million, or 47 cents, a year
earlier. Excluding restructuring charges and other impacts,
earnings grew to 66 cents from 64 cents. Revenue fell 1.4% to $1.43
billion.
Wall Street projected a per-share profit of 61 cents on revenue
of $1.43 billion.
Operating margin fell to 8.9% from 11.5%.
Revenue from business services, the company's biggest top-line
contributor, fell 4.3%. Equipment sales, the second-biggest
contributor, grew 6.9%. Sales fell in four of Pitney Bowes five
other business segments.
The company said that as a result of actions it took during
2010, it exited the year in an excellent position, allowing it to
raise its quarterly dividend for the 29th consecutive year. The
payout was increased to 37 cents per share from 36.5 cents.
-By John Kell and Lee Roberts, Dow Jones Newswires;
212-416-2480; john.kell@dowjones.com