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Pitney Bowes names interim CEO, targets cost savings

Published 23/05/2024, 03:06 am
PBI
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STAMFORD, Conn. - Pitney Bowes Inc . (NYSE:PBI), a global shipping and mailing company, announced the appointment of Lance Rosenzweig as interim CEO, effective immediately. The move comes alongside the company's efforts to enhance shareholder value through cost savings and balance sheet improvements.

Rosenzweig's appointment follows the departure of Jason Dies, who has retired after years of service. As a member of the Board of Directors, Rosenzweig is expected to spearhead the company's transformation, focusing on core, cash-generating segments.

Pitney Bowes aims to achieve additional annualized cost savings of $60 million to $100 million, building on previous efficiency measures. This goal excludes the Global Ecommerce (GEC) business, which is undergoing an accelerated strategic review to enhance shareholder value.

Efforts to optimize cash include reducing future cash requirements by approximately $200 million through improved liquidity management and optimizing the balance sheet of Pitney Bowes Bank. The company also plans to prioritize paying down high-cost debt as part of its balance sheet deleveraging strategy.

To support these initiatives, Pitney Bowes has engaged two nationally recognized consulting firms with financial and operational expertise.

The Board has transformed its Finance Committee into a Value Enhancement Committee to oversee these new strategic efforts. Jill Sutton, Chair of the Board, expressed confidence in Rosenzweig's ability to lead the company's transformation, citing his background in technology services.

Kurt Wolf, Chair of the Value Enhancement Committee and owner of approximately 9% of the company's shares, emphasized the board's commitment to unlocking value by eliminating excess costs and simplifying the corporate structure.

Rosenzweig thanked the board for their trust and expressed enthusiasm for working with the management team to drive performance and success.

Pitney Bowes has initiated a new search for a permanent CEO, with the Board planning to retain a new search firm for this process.

The company will host an investor conference call on May 29 to introduce Rosenzweig and discuss the new strategic initiatives.

This news is based on a press release statement from Pitney Bowes Inc.

InvestingPro Insights

As Pitney Bowes Inc. (NYSE:PBI) navigates a period of strategic transformation under new interim CEO Lance Rosenzweig, investors and stakeholders are keenly observing the company's financial health and market performance. Insights from InvestingPro reveal a mixed picture that reflects both the challenges and potential opportunities for the company.

InvestingPro Data highlights a market capitalization of $939.09 million, suggesting a modest size in the competitive global shipping and mailing industry. Despite a challenging last twelve months ending Q1 2024, with a reported negative P/E ratio of -8.34, Pitney Bowes has managed to maintain a dividend yield of 3.85%, underscoring its commitment to returning value to shareholders, a streak that has persisted for 54 consecutive years. This is particularly noteworthy given the company's focus on cost savings and balance sheet improvements.

Moreover, the stock has seen a strong return over the last month, with a 25.0% price total return, and an even more impressive three-month return of 38.52%. This could indicate growing investor confidence in the company's restructuring plans and the new leadership's ability to steer the company towards profitability, as analysts predict Pitney Bowes will be profitable this year.

An InvestingPro Tip to consider is the high return over the last year, with a 69.67% price total return, which might appeal to investors looking for companies with strong recent performance. Additionally, the company's stock price movements have been quite volatile, which could present opportunities for investors with a higher risk tolerance.

For those interested in a deeper dive into Pitney Bowes' financials and market predictions, more InvestingPro Tips can be found at https://www.investing.com/pro/PBI. Interested investors can also benefit from an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24. There are currently 9 additional tips listed in InvestingPro that could further inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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