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.
