Pitney Bowes Reports Results In Line With Previous Warnings
Press release from the issuing company
STAMFORD, Conn., January 30, 2001 - Pitney Bowes Inc. (NYSE:PBI) today reported fourth quarter and full year 2000 performance in line with previous guidance. For the fourth quarter, revenue decreased five percent to $978 million from $1,026 million in 1999, while income from continuing operations was $137.7 million and diluted earnings per share from continuing operations was 55 cents. Including discontinued operations, fourth quarter net income in 2000 was $148.3 million and diluted earnings per share was 59 cents.
For the full year, revenue increased two percent to $3.9 billion from $3.8 billion in 1999. Income from continuing operations was $563.1 million and diluted earnings per share from continuing operations was $2.18. Full year net income was $622.5 million or $2.41 in diluted earnings per share. These results reflect both the treatment of the Office Systems business as a discontinued operation (announced December 2000), and adoption of the Securities and Exchange Commission's Staff Accounting Bulletin (SAB) No. 101, "Revenue Recognition in Financial Statements."
Free cash flow in 2000 was more than $600 million. During the quarter, the Company repurchased approximately 4.3 million shares, bringing the total 2000 share repurchase to 17.2 million shares and completing the current board authorization for share repurchase.
Pitney Bowes Chairman and CEO Michael J. Critelli, commented, "While we faced a slowing economy and difficult market conditions during 2000, we made significant progress in some parts of the business. We also continued to take a variety of strategic actions designed to support long-term, consistent profit growth. These factors affected our revenue and earnings growth both in the fourth quarter and for the year.
"Undertaking significant strategic action is challenging in any environment," he continued, "but few companies have the strength and stability to make the changes we have this year. Since the second quarter 2000, we have sold our credit card portfolio, announced a plan to spin-off our Office Systems business, and made acquisitions, alliances and management changes that will enhance our products, services and delivery capability on a global basis."
Commenting on the year, Mr. Critelli stated, " Our decisions to spin off Office Systems and align our mailing business on a global basis create an opportunity for us to make significant changes in our business infrastructure and increase our momentum around growth.
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