Pitney Bowes Revenue Rises, Earnings Fall

Share this article:
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.


Share this article:
close

Next Article in Direct Mail

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Direct Mail

Ricoh Strikes a Blow for Multichannel on a Small Scale

Ricoh Strikes a Blow for Multichannel on a ...

The company introduces a creative service to help print shops augment direct mail with email and pURL landing pages.

Delivered: Insurance Mailers

Delivered: Insurance Mailers

What's in our mailbox this month: Insurance mailers. See which ones cover all their bases—and which ones, not so much.

Marketing Challenge: Defending Direct

Marketing Challenge: Defending Direct

The new CEO wants to cut direct mail because of postal increases—even though DM is great for ROI. What would you do? Email your answers to ginger.conlon@dmnews.com by June 30 ...