Pitney Bowes says 3Q profit up 5 percent on productivity gains; year guidance is lowered
Associated Press
11/03/09 7:01 PM EST
STAMFORD, CONN. — Mail and document-management company Pitney Bowes Inc. said on Tuesday that its third-quarter profit rose 5 percent, even as revenue fell, as it focused on productivity gains.
The company said it earned $103.2 million, or 50 cents per share, up from $98.2 million, or 47 cents per share, during the same period last year. Revenue fell 12.3 percent to $1.36 billion from $1.55 billion a year earlier.
The company said that adjusted profit from continuing operations was 55 cents per share, down from 67 cents per share a year earlier. Analysts surveyed by Thomson Reuters were expecting a profit of 54 cents per share on revenue of $1.41 billion.
Costs and expenses fell to $1.19 billion from $1.37 billion.
The company said earnings before interest and taxes rose in six out of its seven segments compared with the second quarter. And it said it expects cost-cutting and other changes to the business to save it $150 million to $200 million a year.
The company also narrowed the range for its guidance for the rest of the year. It said it now expects to earn $2.09 to $2.21 per share. It expects an adjusted profit of $2.19 to $2.31.
It also said it expects revenue to decline 8 percent to 11 percent.
Pitney Bowes had said in July that it expected to earn $2.09 to $2.29 per share, with revenue declining 4 percent to 11 percent.
Pitney Bowes shares rose 3 cents to $24.70 in late trading, after gaining 14 cents to $24.67 in the regular session.
