Pitney Bowes Inc.'s (PBI) second-quarter profit dropped 8.8% as
revenue declined amid the weak economic climate and the stronger
dollar weighed on results.
The provider of mail products and services lowered its full-year
outlook, saying it hadn't seen any indication mail-intensive
industries would improve this year, on top of additional declines
seen in some key geographies. It also posted results below Wall
Street's expectations.
Shares were down 9.4% to $21.30 in after-hours trading following
the news. The stock is down about 40% from September, but has
slightly rebounded from a 13-year low of $17.62 in November.
Pitney Bowes has posted declining revenue for three quarters, as
customers delay orders during the economic slowdown. In response,
it has cut jobs over the past couple of years, while adding it
would focus on retaining its current customers. Still, Pitney Bowes
faces structural challenges to its business, including slowing mail
volumes.
Pitney Bowes reported earnings of $117.3 million, or 57 cents a
share, down from $128.5 million, or 61 cents a share, a year
earlier. Excluding restructuring and tax adjustments, earnings fell
to 55 cents from 69 cents.
Revenue decreased 13% to $1.38 billion amid an 8% drop in U.S.
mailing revenue and a 28% decrease internationally on the stronger
dollar.
Analysts polled by Thomson Reuters expected per-share earnings
of 60 cents on revenue of $1.43 billion.
Pitney Bowes now sees adjusted earnings from continuing
operations of $2.15 to $2.35, down from its May view of $2.40 to
$2.60. Sales are projected to drop 7% to 10%, or 4% to 7% on a
constant currency basis, compared with its prior view of down 6% to
9%.
- By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com