Research Industry Trends 2007
Research Industry Trends 2007
Read MoreTag: Consulting
Pitney Bowes Announces Strategic Actions and Provides Guidance for 2008
First, following a comprehensive review of the company’s business portfolio, the company has decided to explore strategic alternatives to determine the best course of action for its U.S. Management Services business.
Second, the company’s Board of Directors has increased the share repurchase authorization to USD 500 million. The company plans to complete the repurchases within six months. The larger size of the program reflects the company’s strong cash flow as well as its confidence in the stock as an attractive investment opportunity.
Third, the company’s Board of Directors has authorized a 2 cent increase in the quarterly dividend. This represents a 6 percent rate of increase and will apply to the dividend with a record date of February 18, 2008.
Fourth, the company is initiating a program to lower its cost structure, accelerate efforts to improve operational efficiencies, and transition its product line. In connection with these transition initiatives, the company expects to record charges of USD 300 to USD 400 million. The program will include non-cash charges associated with the write-off of inventory and lease residuals of older equipment that the company will stop selling as it transitions to the new generation of fully digital, networked, and remotely-downloadable equipment.
The balance will be cash charges related to efforts to lower the cost structure and accelerate improvements in operational efficiencies. As a result of this program, the company expects a net reduction of about 1,500 positions across business lines and geographies, representing approximately 4 percent of the global employment base.
Read MorePitney Bowes (US) to Cut 1,500 Jobs
The Stamford-based mail and document-managing company announced it will take a charge of between USD 300 million and USD 400 million to write off inventory and leases of equipment that is discontinued. And it will cut 1,500 jobs, about 4 percent of its work force, as it outsources manufacturing work and streamlines management.
Pitney Bowes, which began its shift to digital mailing technology in 2002, is reacting as much to changes in the U.S. Postal Service on which its business relies as to technological advances such as Internet mail tracking, Web-based postage sales and computer networks.
Shares of Pitney Bowes rose 16 cents to USD 38 Thursday.
The company also announced that it expects results between a loss of 17 cents and a profit of 4 cents per share for the fourth quarter and a profit of USD 1.76 to USD 1.97 for the year. In October, Pitney Bowes forecast net income of 66 cents to 70 cents per share.
Excluding extraordinary items, the company said it still expects to earn 67 cents to 71 cents per share for the fourth quarter. Analysts expected a profit of 69 cents a share, according to a survey by Thomson Financial.
Martin, without being specific, also said Pitney Bowes will consider alternatives to its U.S. management services business. The business, which brings in about USD 1 billion in annual revenue and employs 12,000 workers, provides mailroom and copy center services to large corporations, federal agencies and law firms.
Analyst Shannon Cross of Cross Research said she expected some action by Pitney Bowes following disappointing third-quarter earnings last month. The company’s USD 127.6 million in profits was down about 16.5 percent, from USD 148.6 million in the same quarter last year. Per-share earnings sunk to 58 cents, from 67 cents in the third quarter of 2006.
Read MoreDMA leads alliance to set environmental standard
Taking a leading role in shaping the industry and reducing its environmental impact, the Direct Marketing Association (DMA) has developed an alliance of like-minded member companies to partner with BSI British Standards to create the first standard for environmental performance in the field of direct marketing.
The Publicly Available Specification (PAS) is expected to form a benchmark for the UK and potentially across other industries and will enable users to make a verifiable environmental claim. It will provide a vital business and future-proofing tool to add substantial value and credibility to businesses. The alliance, comprising Royal Mail; Acxiom, one of the UK’s largest data companies; ISBA, the voice of British advertisers; and the TPS, the consumer telephone suppression file, has proved fundamental in gaining the necessary support and funding for the scheme.
The standard will be independently facilitated by BSI and is expected to take nine to 12 months to develop. The development process will build consensus around a way forward that is pragmatic and achievable, underpinned by good practice. BSI will carry out research and consult with key stakeholders from government and industry such as Defra, WRAP and the Environment Agency, as well as other relevant trade associations and key consumer groups.
All areas of direct marketing will be covered by the standard from email marketing to direct mail to field marketing. The consultation process will provide insight into how the environment relates to each business sector where initially the connection may not be obvious.
Read MoreTechnical Supremacy sets ByBoxes apart
ByBox has launched a new generation of electronic postal lockers that are not only available in a variety of sizes and configurations to meet every requirement; but also packed with technical innovation to make them extremely flexible, user-friendly and secure.
The result is a reliable, robust and readily accessible system that is proven to provide postal operators and their customers with new levels of service, and swift delivery and collection facilities that meet the changing needs of the postal market.
Equally suitable for internal and external use, each locker bank is flexible and can be easily changed by adding or removing a column of locker doors. Built with tough, environmentally resistant material and coated in vandalism resistant paint, they operate over a large temperature range and at up to 93 pct humidity. To protect customers from the elements, external locker banks can be fitted with a weatherproof canopy.
Lockers are available in several standard dimensions that handle everything from large parcels to letters, and sizes can be customised if required. They can also be supplied in a variety of colours and branded to aid customer identification.
A number of security features are factored into the locker bank design. They include sensors that detect any attempted break-ins, and software that detects tampering and sounds an alarm after several aborted attempts.
At the same time, user security data may be monitored in a number of different ways, using signature capture, web camera and biometrics techniques such as fingerprint recognition.
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