New Pitney CEO banks on mail-stream technology

The new chief executive officer of Stamford-based Pitney Bowes Inc. has predicted that by the end of the decade half of its growth will come from new products and services focused on mail-stream technology, its core business.

Pitney Bowes will continue the growth strategy it established in 2000 to concentrate on mail-stream products, Murray Martin said yesterday after the company’s annual meeting at its headquarters.

Martin, who has been with Pitney Bowes since 1987, most recently as president and chief operating officer, succeeds Michael Critelli, who has been elevated to executive chairman after 11 years as chairman and CEO.

“Mike is a real visionary. We’re a strong, focused and nimble company,” Martin told about 100 people at the meeting, crediting Critelli for his leadership in coalescing a diverse number of businesses into a thriving USD 5.8 billion operation.

When Critelli assumed leadership of the company, it had USD 3.8 billion in revenue.

The company saw its revenue climb 4 percent in the first quarter, from USD 1.36 billion in 2006 to USD 1.41 billion in that period this year. Net income, however, fell from USD 153 million in the 2006 quarter to USD 145 million in the most recent quarter.

In 2006, Pitney Bowes’ total revenue grew by 7 percent, and earnings per share improved by 9.5 percent.

Pitney Bowes will see its international revenues play an increasingly important role, Martin predicted, noting that 27 percent of its total revenue is derived from outside the United States today, compared with 17 percent in 2000.

Under Critelli’s guidance, the company tripled its international revenue to USD 1.5 billion and made more than 65 acquisitions around the world.

“Our emphasis is on quality growth, not just cutting cost,” said Martin, a Wilton resident.

The Post Office Accountability and Enhancement Act of 2004 will increasingly drive demand for its products and services, said Critelli, who is co-chairman of the Mailing Industry Task Force.

He also is chairman of the Mailing Industry CEO Council that provides advice to the federal government on postal reform.

“It’s a very unstable postal environment. If we put more focus on it, it can be a benefit to us,” Critelli said, adding that he expects the European Union also to reform its postal regulations. “I’ll spend more time trying to develop more market opportunities in government and the health care sectors.”

Company leadership started contemplating the transition in leadership about 11Ú2 years ago, said Critelli, who led Pitney Bowes through a divestiture of unrelated businesses so it could focus on mail stream strategy.

During Critelli’s tenure, the company has been named to CRO Magazine’s “100 Best Corporate Citizens” list for eight consecutive years, and this month, Ethisphere magazine named it one of the world’s most ethical companies.

Stockholders left the meeting generally upbeat about Critelli’s tenure and prospects under Martin.

“I think it’s been good, but I’d like to see the stock a little higher,” said one investor who worked for the company for 39 years and declined to be identified.

He said he would like to see the share price climb to more than USD 50 and dividends increase. In April, the board of directors declared a dividend of 33 cents per share.

Critelli’s performance satisfied Stamford resident William Kesnick, a longtime stockholder.

“It was excellent. I’ve had their stock for 50 years,” he said. “I’m still getting my dividends.”