WASHINGTON (dpa-AFX) - Pitney Bowes Inc. (PBI) announced notice of its election to redeem $400 million of its bonds which are scheduled to mature in October 2012. The company noted that bonds will be repurchased substantially with cash on the balance sheet and operating cash flow.
Chairman, president and CEO, Murray Martin, stated, 'Redemption of these bonds reflects our strong free cash flow, ongoing confidence in our business and the strength of our balance sheet. We are a solidly profitable company and expect to generate $700-$800 million in free cash flow this year. Our free cash flow is sufficient to pay our dividend, reduce our debt and support ongoing investment in our business. This action also reinforces our support for maintaining our investment grade ratings.'
Further, Pitney Bowes reaffirmed its guidance for the year for revenue, adjusted earnings per share and free cash flow. For full year 2012, the company still expects earnings from continuing operations for the quarter to be in a range of $2.22 to $2.42 per share, and adjusted earnings from continuing operations of $2.05 to 2.25 per share. Besides, the company still expects 2012 revenues, excluding the impacts of currency, to be in a range of 2 percent growth to a decline of 2 percent as compared to 2011.
Analysts polled by Thomson Reuters expected the company to report earnings of $2.08 per share on revenues of $5.17 billion for the year.
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