By Kristin Jones
Pitney Bowes Inc.'s (PBI) second-quarter profit edged down 1.3%
as the mail and document services company continued to see lower
revenue in both of its major business segments.
The company lowered its full-year outlook, citing uncertainty in
Europe. It now sees adjusted earnings from continuing operations of
$1.95 to $2.15, on revenue that is flat or declines up to 4% from a
year earlier. It previously saw $2.05 to $2.25 a share, on a
revenue range from a 2% drop to a 2% increase.
Pitney Bowes's revenue has slumped along with mail use in North
America, as email and other forms of communication have risen to
dominance. In May, Standard & Poor's Ratings Services lowered
its outlook on the company, saying the weak economy is exacerbating
the decline of mail.
Pitney Bowes has sought to shift its focus from its
less-profitable businesses, and last year launched a cloud-based
service to print postage and shipping labels. It also recently
signed an agreement with Facebook Inc. (FB) to offer global
geocoding services.
Pitney Bowes reported a profit of $99.6 million, or 50 cents a
share, down from $100.9 million, or 49 cents a share, a year
earlier. Excluding restructuring charges and asset impairments,
adjusted earnings from continuing operations were 52 cents a share
a year ago.
Revenue decreased 5.2% to $1.25 billion.
Analysts polled by Thomson Reuters most recently projected
earnings of 49 cents on revenue of $1.25 billion.
Revenue from the segment that includes mailing operations
declined roughly 8%, or 5% excluding currency impacts, reflecting
lower rentals and financing revenue. At its enterprise segment,
which includes software and management services, revenue shrank 3%,
or 1% without currency effects.
Shares sank fractionally to $12.90 in after-hours trading.
Through the close, the stock was down 30% so far this year.
Write to Kristin Jones at kristin.jones@dowjones.com
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