Pitney Bowes 2004 Annual Report Download - page 4

The spirit of innovation is central to all we do at
Pitney Bowes. Our mail and document management
solutions are changing the very nature of business
communications. This is what we mean when we talk
about pushing the envelope. And it is in this context
that I want to talk about
our accomplishments in
2004 and the excellent
opportunities that I see
for the future.
I am extremely pleased
by the company’s
performance in 2004.
Our diversified revenue
base drove growth of
8 percent. Our organic
revenue growth was
3 percent, excluding
the effect of strategic
transactions and
currency translation.
Both rates are the
highest we have had
in five years. We also
had an exceptionally
strong finish to the
year. In fact, the fourth
quarter was our best
quarter in more than
four years.
As part of our growth strategies, we aggressively
pursued acquisitions in 2004, completing 14 and
strengthening our market position on a number
of fronts, including our software
capabilities, our Mail Services
business and our global presence.
We also continued to expand our
broad range of offerings with exciting
new products and services, including new digital
meters that are helping to boost the performance of
our mail finishing business. The letter from Bruce
Nolop, our Chief Financial Officer, provides addi-
tional perspective on our results on page 27 of this
report. Here, I want
to concentrate on the
factors that drove our
performance.
SIX GROWTH ENGINES
Pitney Bowes is in the
enviable position of
having six diversified
growth engines. They
all contributed to the
company’s success in
2004 and should continue
to drive growth for years
to come. Here are
some highlights:
>Small Business
Solutions delivered
8 percent revenue growth
and double-digit earnings
growth in 2004 and
enlarged its market base
to 840,000 customers, a
net increase of 115,000
customers since 2002.
Small businesses value
the convenience and flexi-
bility of our mailing and shipping solutions, including
digital mailing systems specifically designed for small
mailers and our new shipping solution for the small
office and home office.
>Mail Services revenue grew 20 percent at sites we
have owned for more than a year and earnings grew
even faster. The PSI Group has grown from 12
facilities in 2002 to a network of 30 sites processing
CHAIRMAN’S LETTER
2
Michael J. Critelli
Chairman and Chief Executive Officer