Friday July 31, 12:01 AM
Update 1-Pitney Bowes cuts forecast, shares slide
SAN FRANCISCO, July 30 (Reuters) - U.S. mail service provider Pitney Bowes Inc (NYSE: PBI - news) slashed its full-year forecasts and posted weaker-than-expected quarterly results.
Pitney Bowes, which competes with France's Neopost (Paris: FR0000120560 - news) to provide mailroom equipment and services, cut its 2009 forecast citing persistent weakness in international markets, longer sales cycles for capital equipment, a slower-than-expected rebound in key markets like financial services, and negative impact from currency fluctuations.
The company, which does not provide quarterly forecasts, expects adjusted earnings from continuing operations in the range of $2.15 to $2.35 per share, down from a May forecast of $2.40 to $2.60 per share, in 2009.
It forecast 2009 revenue to decline 4 percent to 7 percent on a constant currency basis, versus 1 percent to 4 percent previously.
The Stamford, Connecticut-based company reported net income of $117.26 million, or 57 cents a share, in the second quarter ended June 30, compared with $128.51 million, or 61 cents a share, a year earlier.
Excluding certain items, Pitney Bowes posted a profit of 55 cents a share, compared with 69 cents a share in the year ago period and lagging analysts' average forecast of 60 cents a share, according to Reuters Estimates.
Revenue fell 13 percent from a year ago to $1.38 billion from $1.59 billion, below Street expectations of $1.43 billion.
Shares of Pitney Bowes fell 7.4 percent in after-hours trading to $21.76 after closing at $23.50 on the New York Stock Exchange.
(Reporting by Clare Baldwin; Editing by Carol Bishopric) Keywords: PITNEYBOWES/
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