PitneyBowes reports 13% drop in revenue
PitneyBowes Inc. reported a 13% drop in revenue in its second quarter financial statement released on July 30. The Stamford, CT-based mailing services company cited declining mail volumes as well as longer purchase decision cycles among its consumers as the cause for the loss in revenue.
The company's second-quarter profit was $117.3 million, or 57 cents a share, down from $128.5 million, or 61 cents a share, a year ago.
PitneyBowes president and CEO Murray Martin attributed his “healthy and profitable company” to improved margins based on cost-cutting measures and focus on core customer needs, in a statement.
In fact, the company stated that customer retention was its biggest asset over the last two quarters. Revenue for the company's US Mailing Mailstream division declined 8% to $505 million, as the company saw many customers extend their lease on old machines rather than purchase new equipment.
The International Mailing division saw deeper cuts – 14% decline to $218 million – as many firms deferred purchases for mailing equipment.
Mailing equipment was not the only segment to take a hit. PitneyBowes software division declined 12% to $83 million. The company financial reports say its financial and retail clients are facing consolidation and economic slowdown that has in turn adversely effected their software investments.A bright spot, the Mail Services division saw a 4% increase in revenue, PitneyBowes attributes this to a growing customer base and increase in mail volume the company is able to process.