Pitney Bowes Inc. (NYSE: PBI) today reported financial results for the third quarter 2012.
- Revenues of $1.2 billion; Adjusted EPS of $0.47; GAAP EPS of $0.38
- Reaffirms full year 2012 guidance for the following:
- Revenue in the range of flat to -4%, excluding the impact of currency;
- Adjusted EPS guidance in the range of $1.95 to $2.15;
- Free cash flow in the range of $750 - $850 million.
- Updates GAAP EPS guidance to a range of $1.78 to $2.08, which includes new impairment and restructuring charges.
- Significant progress on expanding our participation in higher growth cross-border ecommerce parcel opportunities, including, a broader strategic relationship with eBay to provide ecommerce shipping solutions beginning in the 4 th quarter.
- Decision to exit the International Mail Services business focused on delivering mail and catalogues internationally, in line with the focus on higher growth cross-border ecommerce parcel opportunities.
- Year-over-year growth in Production Mail revenue.
- Continued growth in Presort revenue.
Commenting on the quarter, Chairman, President and Chief Executive Officer Murray D. Martin said, “We continue to execute our strategy to be a leading provider of customer communications solutions; however, our earnings performance during the quarter did not meet our expectations. In the third quarter, our results continued to be affected by global economic weakness, especially in International Mailing and Software where public sector spending remains constrained. However, we were pleased to see gradually improving trends in North America Mailing, where equipment sales experienced a slower rate of decline and the best year-over-year comparisons in six quarters.”
Mr. Martin added, “We continue to take actions to drive sustainable long-term growth for Pitney Bowes and our shareholders and are focused on positioning Pitney Bowes to succeed in the changing market landscape. We decided to exit the International Mail Services business related to the delivery of international mail and catalogs. As we focus on the higher growth opportunities, we are growing our participation in ecommerce opportunities related to cross border parcel shipping services. One example is our collaboration with eBay to facilitate cross border ecommerce by providing technology solutions and parcel shipping services. Additionally, to address our changing business mix and current economic pressures, we are initiating actions to further streamline the business through organizational and management consolidations to further reduce our cost structure. And, we will further realign future investments in the business as we focus on higher growth opportunities.”
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