North America Mailing
Revenue for the quarter was consistent with the prior three quarters results. Recurring revenue stream trends were in-line with prior quarters driven primarily by financing revenue, which declined less than one percent, and the continued stabilization of rentals revenue. Equipment sales declined at a mid-single digit rate in the U.S. compared to a relatively strong first quarter in 2014. The Company continues to focus on driving productivity improvements in the segment’s sales channels. EBIT margin improved versus the prior year due to continued benefits from the go-to-market implementation and on-going cost reduction initiatives.
International Mailing
During the quarter, revenue declined 24 percent on a reported basis. Currency adversely affected the decline in revenue by 12 percentage points. For comparative purposes, revenue would have declined 7 percent when adjusted for the impacts of currency and the reduction in revenue resulting from the exit of direct operations in some European countries completed in the third quarter of 2014.
The Company continued to implement its go-to-market strategy throughout Europe during the quarter. This transition was first completed in the UK in January, which had positive revenue growth in the quarter, and is now complete in Germany. However in France, the Company’s second largest market in Europe, the Company is still in the consultation stages of the proposed transition, which impacted sales productivity during the quarter. EBIT margin declined versus the prior year primarily due to lower revenue and the impact of currency on some supply chain costs.
|
Enterprise Business Solutions Group |
||||||||||||||||||||||||
| ($ millions) | First Quarter | |||||||||||||||||||||||
|
Y/Y Ex Currency |
||||||||||||||||||||||||
|
Y/Y |
Y/Y |
and Divested |
||||||||||||||||||||||
| Revenue |
2015 |
2014 |
Reported |
Ex Currency |
Revenues* |
|||||||||||||||||||
| Production Mail | $ |
100 |
|
$ |
105 |
|
(5 | %) | 0 | % | 1 | % | ||||||||||||
| Presort Services |
122 |
116 |
4 |
% |
4 |
% |
4 |
% |
||||||||||||||||
| Enterprise Business Total | $ | 221 | $ | 222 | 0 | % | 2 | % | 3 | % | ||||||||||||||
| EBIT | ||||||||||||||||||||||||
| Production Mail | $ | 9 | $ | 8 | 17 | % | ||||||||||||||||||
| Presort Services |
27 |
24 |
15 |
% |
||||||||||||||||||||
| Enterprise Business Total | $ | 37 | $ | 32 | 16 | % | ||||||||||||||||||
