STAMFORD, Conn. (AFX) - Mailing and postage equipment producer Pitney Bowes Inc. said Monday second-quarter results were dragged down by hefty costs associated with discontinued operations.
The Stamford, Conn.-based company said it swung to a loss of $356.1 million, or $1.59 per share, from a profit of $135 million, or 58 cents per share, in the year-ago quarter.
Second-quarter earnings were dragged down by a loss of $2.13 per share from costs associated with discontinued operations. The company had a $477 million loss from discontinued operations; including losses from the sale of its capital services external financing business to a Cerberus Capital Management LP unit on July 17, the sale of its Imagistics lease portfolio, an anticipated IRS settlement and recent tax law changes.
Earnings from continuing operations were basically flat at $121.3 million, or 54 cents per share.
Analysts polled by Thomson Financial expected the company to post 68 cents per share on $1.44 billion in revenue, excluding restructuring costs.
Sales rose 5 percent to $1.39 billion from $1.32 billion in the 2005 second quarter.
Revenue for the company's Mailstream solutions business, which includes worldwide sales and rentals related to mail creation, shipping and production of mail equipment, increased 5 percent to $1 billion.
Mailstream services revenue rose 6 percent to $391 million from the prior year. The segment includes facilities management contracts, document management and other services.
Pitney Bowes lost 35 cents in after-hours trading at $41.15.
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