Pitney Bowes Reports Slightly Lower 2010 Revenue but Remains Positive on Future
During the quarter, Management Services had its best net new written business in the United States. in two years as the business environment appears to be stabilizing. These new contracts will begin to offset the revenue decline resulting from account contractions and terminations in the United States during the economic downturn. Also, as noted previously, the company exited a number of postal facilities management contracts in the United States, which reduced revenue during the quarter. Outside the United States, where the company principally provides print and customer communication services to enterprise accounts in Europe, the company decided to exit some lower margin accounts. As a result of this decision and lower print volumes, revenue declined in the quarter. Despite lower revenue, segment EBIT margin improved for the sixth consecutive quarter versus the prior year. The margin improvement resulted from the company’s focus on more profitable contracts, ongoing productivity initiatives, and a continued transition to a more variable cost structure.
- Companies:
- Pitney Bowes
- Places:
- Stamford, Conn.
- United States