Pitney Bowes has a measured approach to managing mail. The world's largest producer of postage meters, the company also makes other mailing equipment and provides shipping and weighing systems. Pitney Bowes offers online postage services, financing for office equipment purchases, and facilities management services. It also develops software to create mailers and manage shipping, transportation, and logistics for government agencies and corporations. The company provides document management services through Pitney Bowes Management Services. Pitney Bowes' global revenues are split about evenly between small and medium-sized businesses (SMB) and large enterprises.
The company's primary manufacturing and assembly facility is located in Danbury, Connecticut and its principal research and development facilities are located in Danbury, Connecticut and Noida, India. In 2012 the US accounted for 68% of company's revenues.
Pitney Bowes opeares in two business segments: Small & Medium Business Solutions and Enterprise Business Solutions.
Small & Medium Business Solutions (mail finishing, mail creation, shipping equipment and software) includes North America Mailing and International Mailing.
Enterprise Business Solutions includes Production Mail (the sale, support, and other professional services of the company's high-speed, production mail systems, sorting and production print equipment); Software (the sale and support services of non-equipment-based mailing, client relationship and communication and location intelligence software); Management Services (facilities management services, secure mail services, reprographic,
document management and other services); Mail Services (presort mail services and cross-border ecommerce solutions); and Marketing Services (direct marketing services for targeted clients).
Sales and Marketing
Pitney Bowes sells tproducts and services to a variety of business, governmental, institutional, and other organizations though its sales force, direct mailings, outbound telemarketing, independent distributors, and over the Internet.
Revenues decreased by 7% in 2012 due to weak worldwide economic conditions, pricing pressures, declining mail volumes, and constrained public sector spending in Europe all contributed to the decline. Worldwide economic conditions continue to impact equipment sales, which declined 5%. Declining equipment sales in prior periods also impacted financing revenue, which declined 10% in 2012. Rentals and supplies revenues both declined 8% due to a decline in mail volumes and the company's installed meter base. Software revenues dropped by 3% due to an overall economic uncertainty in company's global markets, particularly in Europe and Asia/Pacific.
Net income dropped by 28% in 2012 due to lower revenues, higher costs of equipment sales (due to a higher mix of lower margin product sales), pricing pressure on competitive placements, and a decline in the number of lease extensions.
Pitney Bowes expects that its product mix will shift, and that a greater percentage of revenue will come from sales to the enterprise market. It is emphasizing more management products and services that help large companies handle both physical and digital communications.
The company's growth strategy has included acquisitions and strategic partnerships. In 2012 it teamed up with 3D design and engineering software provider Autodesk to further drive opportunities in software for enterprise customers. The two companies will work on integrating applications and developing new ones to address areas such as modeling, construction, and asset maintenance management for infrastructure clients and architecture, engineering, and construction businesses.
In 2012 Pitney Bowes formed a new global e-commerce business group that will focus on growing its international e-commerce solutions and cross-border parcel services to help retailers create a seamless online purchasing and shipping experience for consumers.
In 2011 Pitney Bowes pulled in nearly 20 digital mail delivery providers that will offer its cloud-based delivery service, Volly, launched that year. Also in 2011 Pitney Bowes Management Services became the preferred outsourcing partner for EMC Corporation's Captiva capture software, which helps businesses transition physical documents to digital.
State Street Corporation and BlackRock owns nearly 14% and 11% of Pitney Bowes, respectively.