Pitney Bowes Misses Earnings Estimates; Cuts Dividend

Pitney Bowes

Pitney Bowes has announced earnings of 42¢ per share for the 1st quarter of 2013.  Earnings were 2¢ per share below analyst’s estimates.   In a seperate press release Pitney Bowes declared a dividend of 18.75 cents per share for the Company’s common stock. 13.  The dividend declared is half of what Pitney Bowes had paid over the previous five quarters. In a statement included in the earnings announcement resident and Chief Executive Officer, Marc Lautenbach, commented, “We are taking a number of actions in support of the long-term health and growth of our business. While the results for the quarter were mixed, we are seeing progress in key elements [...] Read more »

If the USPS Is In Trouble, Why Did Mailing Industry Stocks Rise Sharply?

quad 11-15 featured

Today the Postal Service reported its financial results for fiscal year 2012.    Headlines of the wire services and major newspapers all suggested that a calamity is just around the corner. Bloomberg - U.S. Postal Service on a ‘Tightrope’ Lost $15.9 Billion   Washington Post - Postal losses cap year of payment defaults, little help from Congress; more red ink in 2013   Reuters – U.S. Postal Service has record loss, sees “fiscal cliff”   Wall Street Journal - U.S. Postal Service Reports Record Loss   Associated Press - Post office reports record loss of $15.9B for year   Pittsburgh Business Times – Postal Service: ‘Far short on liquidity’   How Did Postal Industry [...] Read more »

Moodys Downgrades Pitney Bowes Debt Due to Challenge of Adjusting to Declining Mail Volume

Moodys Featured

On Monday, April 23,2012, Moody’s downgraded Pitney  Bowes Inc. (“Pitney Bowes”) debt ratings, including the senior  unsecured rating to Baa1 from A2 and its short-term rating to Prime-2  from Prime-1.  After the downgrade, Pitney Bowes debt remains investment grade. Moody’s Vice President Gregory Fraser rationale for the downgrade highlights the difficulty that Pitney Bowes, and for that matter all firms in the postal market, have in adjusting to the reality of lower mail volumes. The revised ratings reflect our expectation that Pitney Bowes’  business and credit profile will be challenged over the intermediate term  due to the ongoing secular decline in traditional mail delivery,  as well as our expectation for worsening [...] Read more »

Fitch Lowers Pitney Bowes Rating: Raising Questions About Use of Mail by Small and Medium Enterprises

Yesterday, Fitch lowered Pitney Bowes credit rating from  BBB from BBB+.  Pitney Bowes lower rating is not investment grade which indicates that Fitch believes that investments are risky.   Fitch does not appear concerned that Piney Bowes will default on its debt, which is qite modest but the downgrade suggests suggests that Fitch does not believe that Pitney Bowes, even with an 8.1% yield is not an investment for risk adverse investors. Key Points from the press release: Fitch’s primary concern is the downward trajectory of the top line. Importantly, Fitch believes cyclical pressures accelerate the well-documented secular challenges, as Fitch believes customers will look to digital mailing as a cost [...] Read more »

Pitney Bowes Hires VP to Run Secure Digital Mail Business

Pitney Bowes announced yesterday that Chuck Cordray to the new position of president of the Volly™ secure digital delivery service.  Cordray joins Pitney Bowes from Hearst Corporation, where he served as senior vice president and general manager of Hearst Magazines Digital Media. In this role, he was responsible for the strategic direction and operating management for Hearst’s digital activities, including advertising, editorial, online consumer marketing, partnerships and project management for 24 different websites, including 12 tied to Hearst magazine properties and 12 purely digital sites. Cordray previously held executive leadership roles for several large consumer brands, including TV Guide Publishing Group, Primedia, Inc., and Meredith Corporation. “Chuck Cordray knows the [...] Read more »

Postal Service as Editorial Fodder

A recent editorial by the Washington Times and a columnist in the Los Angeles Times provide illustrations as to how ideological predilections and reporting on a deadline produce more heat and less light about how to solve the problems facing the Postal Service.   These commentaries reflect the seasonal interest in the Postal Service use it to ship packages and send correspondence that they rarely send in the other 11 months of the year. Readers of this blog are more familiar with the problems that the Postal Service faces these writers.   They will have no problems identifying how the writers of the two pieces illustrated their minimal knowledge of the postal [...] Read more »

Becoming a Multi-modal Postal Company

Today, RR Donnelley announced a new mobile application for broker/dealers and financial advisors.  This application is part of a suite of digital products and services that RR Donnelly offers to the financial services industry. RR Donnelley’s significant presence in digital documents may be a surprise to many readers of this blog who only know of the company as the largest printer of documents that are delivered by mail in the United States.   Illustrative of this change is how RR Donnelley describes its business. RR Donnelley is a global provider of integrated communications. Founded more than 145 years ago, the company works collaboratively with more than 60,000 customers worldwide to [...] Read more »