Pitney Bowes Revenue Rises, Earnings Fall

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Pitney Bowes Inc., an integrated mail and document management solutions company, posted lower first-quarter net earnings yesterday despite strong results from its core postage metering business.


Pitney Bowes, Stamford, CT, the No. 1 postal equipment maker, reported net income of $113.9 million compared with $129.5 million in the year-ago period. Revenue rose to $1.09 billion from $1.05 billion a year ago.


In the quarter, revenue increased 5 percent and operating profit rose 9 percent in the Global Mailing segment, Pitney Bowes's biggest unit, boosted by demand for its digital mailing systems and related services.


Global Mailing "benefited from strong growth in its small-business operations, although the economy caused some delayed decision making for upgrades and new equipment purchases at the high end of the product line," the company said.


Subsidiary PSI Group Inc. added operations and customers in the quarter as the company's presort/work-sharing service network continued to expand in terms of reach and revenue contribution.


Operating profit at the Pitney Bowes Management Services unit, however, declined 37 percent from a year ago.


"Margins were adversely impacted by the initial lower margins, higher start-up costs and delayed implementation associated with new accounts, and the loss of higher-margin business with long-term customers as they continued to downsize," the company said.


The company projects second-quarter earnings per share of 58 cents to 60 cents, on par with analyst estimates.


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