Commenting on the quarter, Chairman, President and CEO Murray D. Martin said, “Our revenue performance this quarter reflects the impact of sustained economic uncertainty on most of our global customer base. This weakness is affecting the buying confidence of some of our customers. As a result, they have become more cautious and are delaying making capital and lease commitments. We also believe that some of the conflicting perceptions and media reports about the mailing industry are having an adverse impact on parts of the business.
“We are pleased, however, that despite the impact of these challenging conditions on revenue, we have been able to improve the profitability of our company as a result of our ongoing Strategic Transformation initiatives.
“We remain focused on helping our customers succeed by providing high- value solutions to build relationships and loyalty with their customers. Our Strategic Transformation program enabled us to make the investments and lay the foundation for delivering an array of these new customer communications management solutions such as our cloud-based pbSmartTM solutions for our small business customers. We also continue to make good progress in contracting with mailers for Volly™, our secure, digital mail platform. We have now signed with more than 25 large 3rd party mail service providers. These companies produce bills and statements on behalf of more than 4,000 companies and consumer brands, and they will be able to provide these companies access to Volly. We are in discussions with many more bill and statement providers and issuers and expect to roll-out this service to consumers in 2012.
“We continue to make critical investments in growth areas for the future such as software, Volly and cloud-based solutions.”
Business Segment Results
The company reports its business segments in two groups based on the customers it primarily serves: Small and Medium Business (SMB) Solutions and Enterprise Business Solutions. The SMB Solutions group consists of the company’s global Mailing operations. The company aligns its SMB business segments into North America Mailing and International Mailing to reflect how the business is managed. North America Mailing includes the operations of U.S. Mailing and Canada Mailing. International Mailing includes all other SMB operations around the world. The Enterprise Business Solutions group includes the company’s global Production Mail, Software, Management Services, Mail Services and Marketing Services operations.
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SMB Solutions |
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| 3Q 2011 | Y-O-Y Change | Change ex Currency | ||||
| Revenue | $653 million | (4%) | (7%) | |||
| EBIT | $202 million | (3%) | ||||
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Within the SMB Solutions Group: |
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North America Mailing |
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| 3Q 2011 | Y-O-Y Change | Change ex Currency | ||||
| Revenue | $476 million | (8%) | (8%) | |||
| EBIT | $177 million | (7%) | ||||
