Pitney Bowes Discusses Benefits of Diversification to Analysts and Investors
NEW YORK, September 10, 2008 - Pitney Bowes Inc. (NYSE:PBI) told an audience of financial analysts and institutional investors today that its diversification strategies have brought significant benefits to both customers and investors. The company also provided fresh perspectives on growth plans for its major lines of business worldwide.
In his remarks, President and CEO Murray Martin noted that the company has changed in several significant ways in recent years, citing especially a geographic expansion that has nearly tripled international revenues since 2000, and an expansion of products and services beyond Pitney Bowes’s core mailing business that has enabled a much richer suite of offerings to customers.
“Our systematic expansion beyond our historic niche of mail evidencing enables us to meet more of the customer’s end-to-end needs,” Martin said. “This keeps the customer connected on topics that matter to them and helps Pitney Bowes build longer-term relationships.”
Martin noted that the addition of several new and rapidly-growing lines of business through acquisition has reduced mail and related hardware to just 54% of total annual revenues, down from 75% just seven years ago. “Our focus of delivering value has evolved from office equipment to mail, from mail to mailstream, and now from mailstream to connections with customers around what matters in the mailstream,” Martin said.
Chief Financial Officer Mike Monahan provided a detailed review of the company’s operating units and their long-term potential for revenue and profitability. Taken together, Monahan said, the company is positioned to deliver a total return to shareholders of 11-13% per year. This estimate assumes an organic revenue growth rate of 3-5%, improved operating profit margins, continued share repurchases, and a dividend yield of approximately 3%, which is close to Pitney Bowes’s long-term historical average.
In addition to the presentations from Martin and Monahan, the company provided demonstrations of many of the new technologies and services it offers. These included location intelligence software that assists marketers in a range of industries make more informed decisions; new systems that add customized marketing messages to bills and statements; and services that help companies take advantage of the rich trove of information provided by the U.S. Postal Service’s Intelligent Mail® barcode.
About Pitney Bowes
Pitney Bowes is a mailstream technology company that helps organizations manage the flow of information, mail, documents, and packages. Our 36,000 employees deliver technology, service, and innovation to more than two million customers worldwide. The company was founded in 1920 and annual revenues now total $6.3 billion. More information is available at www.pb.com.
This document contains "forward-looking statements" about our expected future business and financial performance. Words such as "estimate," "project," "plan," "believe," “think,” "expect," "anticipate," "intend," and similar expressions may identify forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to: successful entry into new markets; timely development and acceptance of new products or gaining product approval; negative developments in macroeconomic conditions, including adverse impacts on customer demand; changes in interest rates and foreign currencies; and changes in postal regulations, as more fully outlined in the company's 2007 Form 10-K Annual Report filed with the Securities and Exchange Commission. In addition, the forward-looking statements are subject to change based on the timing and specific terms of any announced acquisitions. The forward-looking statements contained in this news release are made as of the date hereof and, as with any projection or forecast, we do not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.