During the quarter, the North America Mailing segment continued to
benefit from increased placements of its Connect+ mailing system and
improved retention rates among its existing customers. The company
experienced improved trends in equipment sales during the quarter as
more customers upgraded to new equipment in lieu of extending leases.
However, revenue was adversely impacted by lower rentals and financing
revenue as a result of lower equipment sales in prior periods. Revenue
was also impacted by a decline in supplies revenue due to fewer meters
in service in the U.S. and lower mail volumes. EBIT margin for the
segment improved by 330 basis points versus the prior year, which was
the seventh consecutive quarter of year-over-year improvement, due to
ongoing productivity improvements and lower credit losses.
|
International Mailing
|
|
|
|
|
1Q 2012
|
|
Y-O-Y Change
|
|
Change ex Currency
|
|
|
Revenue
|
|
$168 million
|
|
(1%)
|
|
1%
|
|
|
EBIT
|
|
$20 million
|
|
(14%)
|
|
|
International Mailing revenue grew one percent excluding the impact of
currency. Revenue benefited from increased equipment sales, especially
in France and the Nordics. The company’s innovative Connect+ product
line was launched in Germany during the quarter and is expected to be
launched in France in the third quarter. The rate of decline for rental
revenue continued to improve year-over-year. Additionally, there was
growth in supplies revenue this quarter. EBIT margin declined
year-over-year due to the mix of business.
|
Enterprise Business Solutions
|
|
|
|
|
1Q 2012
|
|
Y-O-Y Change
|
|
Change ex Currency
|
|
|
Revenue
|
|
$626 million
|
|
(3%)
|
|
(2%)
|
|
|
EBIT
|
|
$64 million
|
|
32%
|
|
|
