DOW JONES NEWSWIRES
Pitney Bowes Inc. (PBI) reversed a year-earlier loss in the
fourth quarter caused by restructuring cost and write-downs, as the
provider of mail products and services projected 2009 results below
analysts' expectations.
Meanwhile, the latest quarter's profit topped analysts'
expectations, with earnings excluding items growing from a year
earlier.
"We believe these results were even more notable given the
impact of currency," said President and Chief Executive Murray D.
Martin. The stronger dollar cut profit by 5 cents a share.
In after-hours trading, Pitney Bowes shares rose 6.4% to $24.50
as the company also announced a 2.8% dividend increase. The stock
has fallen more than one-third in the last five months.
The company reported net income of $74 million, or 36 cents a
share, compared with year-earlier net loss of $57.9 million, or 27
cents a share. Excluding items such as the restructuring charges
and write-downs, earnings rose to 77 cents from 72 cents.
Revenue fell 6.7% to $1.55 billion amid a 3% drop in U.S.
mailing revenue and 18% slump internationally on the stronger
dollar.
Analysts polled by Thomson Reuters, on average, projected
earnings of 74 cents on revenue of $1.61 billion.
Citing global economic weakness and unanticipated currency
fluctuations, Pitney Bowes projected earnings of $2.55 to $2.75 a
share and revenue, on a constant-currency basis, down 2% to up 1%.
Analysts were looking for earnings of $2.83 and 1% growth in total
revenue.
In January, the company opened a new facility in the U.K.,
offering international mail and package services. It is also
expanding operations on the West Coast.
Last year, Pitney Bowes decided to retain its management
services business after a strategic review that considered a sale
or spinoff of the operations. It made up 19% of 2008 revenue but
only 5.2% of earnings before interest and taxes.
-By Aja Carmichael, Dow Jones Newswires; 201-938-5218;
aja.carmichael@dowjones.com;