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At a Glance

Uppers

Strong salaries and benefits package

Opportunity for advancement

Lots of job openings

Downers

Work schedules can be hectic

Demand for company's main product line falling thanks to new technologies

Managers sometimes fail to recognize good work

The Bottom Line

Pitney Bowes offers positions in a wide range of fields, but some employees fear how it will respond to a changing business environment.

About Pitney Bowes Inc.

Known as the world's largest producer of postage meters. Sending mail and packages is a big part of its business with services like pre-sort, label printing, and logistics among its offerings. But Pitney Bowes has integrated digital capabilities with its physical mail services and expanded into other digital areas. The company offers software-as-a-service and cloud-based services for e-commerce that facilitate cross-border shipping, enabling its clients to provide their customers with the complete cost of the transaction at checkout. The US accounts for about 85% of sales.

Operations

Pitney Bowes operates in three business segments: SendTech Solutions, Global Commerce and Presort Services.

The SendTech Solutions segment which accounts for about 50% of sales, includes the revenue and related expenses from physical and digital mailing and shipping solutions, financing, services, supplies and other applications to help simplify and save on the sending, tracking and receiving of letters and packages.

Commerce Services, which also accounts for more than 50% of sales, includes Global Ecommerce (cross-border e-commerce, domestic retail and ecommerce shipping and fulfillment), delivery and return services, and Presort Services that offers sortation services to large volumes of first class mailing, marketing mail and bound and packet mail.

Pitney Bowes handles some of its own manufacturing but most of it is done by third-party suppliers. The company also outsources the hosting of its software-as-a-service offerings and the logistics portion of its e-commerce business.

Geographic Reach

Connecticut-based Pitney Bowes leases facilities worldwide, which house sales offices, service locations, data centers, call centers, and parcel and mail processing facilities. Its principal research and development facilities are in Shelton, Connecticut, and Noida and Pune, India.

Pitney Bowes depends on the US market for about 85% of its revenue and the remaining about 15% came from International countries.

Sales and Marketing

Pitney Bowes sells products and services to a variety of business, governmental, institutional, and other organizations though its sales force, independent dealers and distributors, and over the internet. With a long history, the Pitney Bowes name is well-known among US corporations. The company counts about 90% of companies listed in the FORTUNE 500 as customers.

Financial Performance

Revenue was flat ($3.2 billion) compared to the prior year; however, currency and Market Exits unfavorably impacted revenue growth by 2%. Commerce Services revenue grew 9% but was offset by an overall decline in the SendTech Solutions shipping and mailing business. It is estimated that the ransomware attack adversely impacted full year revenue by $18 million.

The company's net income in 2019 decreased by $47.2 million to $194.6 million, compared to $241.8 million in 2018. The fall was due to higher costs and expenses while having almost the same revenue.

Cash held by the company at the end of 2019 increased by $57.2 million to $924.4 million from $867.3 million in the prior year. Cash provided by operations and investing activities were $252.2 million and $489.6 million, respectively. Cash used for financing activities was $686.6 million.

Strategy

Pitney Bowes will continue to grow. While this was imaginable seven years ago, the company were at that time a long way from sustained growth. In 2019, Pitney Bowes also took aggressive actions to improve their balance sheet. The company reduced their debt by over $500 million. If you look at 2018 and 2019 together, the company have reduced their debt by over $1 billion. The company have addressed their debt towers over the coming years and substantially strengthened the balance sheet.

The combination of repositioning the company for growth, focusing their portfolio, investing in their capabilities and strengthening the balance sheet has created the conditions for profitable growth and long-term value creation going forward.

Mergers and Acquisitions

Pitney Bowes has made several acquisitions in recent years to bolster its ecommerce capabilities and diversify its offerings.

In 2019 the company bought Emtex Ltd. for $41 million. Emtex's (U.K. based) software and services allow large-volume mailers to simplify document production and centrally manage complex multi-vendor and multi-site print operations.

Pitney Bowes acquired DDD Co. headquartered in Landover for about $49.5 million in 2019. DDD provides fulfillment services, secure mail processing, messenger services, logistics support, and record and information management. The deal accelerated Pitney Bowes' diversification of the PBMS customer base into the government sector.

Company Background

In 1912 Walter Bowes, an address machine salesman, gained control of Universal Stamping Machine, which made stamp canceling machines. In 1920 Bowes joined with Arthur Pitney, who had developed a postage metering machine. After creating a market by forcing through Congress legislation that outlawed the sale of meters, the Pitney-Bowes Postage Meter Company began leasing new machines in 1921. During the 1920s Pitney-Bowes built a large service fleet with leasing and repair expertise; added mail handling machines, including stampers and counters, to its product line; and expanded into Canada, Germany, and the UK.

Pitney left in 1924 to start a competing company. Other competitors, including IBM and NCR, entered the market, but they were never able to catch up with Pitney-Bowes. The company was so successful that almost no competitors remained. The US Justice Department investigated the business practices of the company, which agreed to license its patents to potential competitors, free of charge.

Facing the prospect of increased competition, Pitney-Bowes began to diversify its operations. In 1967 the company took on Xerox with a line of copiers. In the late 1960s it moved into pricing and inventory control equipment and credit and ID card products. It also established a joint venture with Alpex for point-of-sale terminals that proved a flop. In 1973 the company wrote off its investment, resulting in its first-ever loss.

Pitney Bowes Inc.

3001 Summer St
Stamford, CT 06905-4317
Phone: 1 (203) 356-5000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: PBI
Stock Exchange: , NYSE
President and CEO: Marc B. Lautenbach
EVP and COO: Michael Monahan
Chairman: Michael I. Roth
Employees (This Location): 3,500
Employees (All Locations): 11,000

Major Office Locations

Stamford, CT

Other Locations

Anchorage, AK
Phoenix, AZ
Brisbane, CA
Commerce, CA
Compton, CA
Corona, CA
Eureka, CA
Fullerton, CA
Huntington Beach, CA
Lake Forest, CA
Los Angeles, CA
Boulder, CO
Englewood, CO
Danbury, CT
Hartford, CT
Naugatuck, CT
Shelton, CT
Stamford, CT
Washington, DC
Fort Myers, FL
Jacksonville, FL
Miami Lakes, FL
Miramar, FL
Orlando, FL
Tallahassee, FL
Tampa, FL
Atlanta, GA
Smyrna, GA
Union City, GA
Cedar Rapids, IA
Urbandale, IA
Chicago, IL
Itasca, IL
Lisle, IL
Naperville, IL
Schaumburg, IL
Indianapolis, IN
Whitestown, IN
Shawnee Mission, KS
Topeka, KS
Erlanger, KY
Hebron, KY
Lexington, KY
Louisville, KY
Baton Rouge, LA
New Orleans, LA
Shreveport, LA
Lanham, MD
Portland, ME
Davisburg, MI
Grosse Pointe Farms, MI
Madison Heights, MI
Romulus, MI
South Lyon, MI
Minneapolis, MN
Kansas City, MO
Jackson, MS
Ridgeland, MS
Charlotte, NC
Lincoln, NE
Keene, NH
Delran, NJ
Elizabeth, NJ
Newark, NJ
Warren, NJ
Albuquerque, NM
Las Vegas, NV
Jericho, NY
Lake Grove, NY
New York, NY
Troy, NY
Brecksville, OH
Dublin, OH
Marietta, OH
Painesville, OH
West Chester, OH
Portland, OR
Harrisburg, PA
Levittown, PA
Mountville, PA
Philadelphia, PA
Pittsburgh, PA
Reading, PA
East Providence, RI
Duncan, SC
Sioux Falls, SD
Austin, TX
Dallas, TX
El Paso, TX
Fort Worth, TX
Grand Prairie, TX
Houston, TX
Irving, TX
Layton, UT
Ashland, VA
Norfolk, VA
Roanoke, VA
Vienna, VA
Kent, WA
Spokane, WA
Milwaukee, WI
Neenah, WI
Noida, India
Agrate Brianza, Italy
Roma, Italy
Usmate Velate, Italy
Chiyoda-Ku, Japan
Fukuoka, Japan
Kawasaki, Japan
Nagoya, Japan
Osaka, Japan
Sapporo, Japan
Sendai, Japan
Shibuya-Ku, Japan
Sao Paulo, Brazil
Ajax, Canada
Brampton, Canada
Burlington, Canada
Burnaby, Canada
Calgary, Canada
Charlottetown, Canada
Chatham, Canada
Edmonton, Canada
Fort Frances, Canada
Fredericton, Canada
Kamloops, Canada
Kelowna, Canada
Keswick, Canada
Kingston, Canada
London, Canada
Mississauga, Canada
Moncton, Canada
North York, Canada
Oakville, Canada
Ottawa, Canada
Pickering, Canada
Prince George, Canada
Québec, Canada
Regina, Canada
Saint John, Canada
Saskatoon, Canada
St Catharines, Canada
St. John'S, Canada
Sylvan Lake, Canada
Thunder Bay, Canada
Toronto, Canada
Vancouver, Canada
Victoria, Canada
Winnipeg, Canada
London, England