Pitney Bowes increases cost-savings target to a range of $120 million to $160 million

By Ciara Linnane

Pitney Bowes Inc.'s stock (PBI) rose 2% in premarket trade Monday, after the shipping and mailing company said it's increasing its cost-savings target to a range of $120 million to $160 million from a prior range of $60 million to $100 million.

The Stamford, Conn.-based company has already identified and eliminated some $70 million in costs, it said, adding that it expects the new target to be largely reflected in the second half of 2024 pretax earnings and fully reflected in 2025.

The savings stem mostly from general corporate cost cuts but do not include potential savings from changes in the global e-commerce segment, where the company is in the final stages of a strategic review.

"Since announcing our strategic initiatives in late May, new leadership has been operating with intensity and urgency to accelerate the turnaround of Pitney Bowes," Interim Chief Executive Lance Rosenzweig said in a statement.

The company has been the subject of a campaign brought by activist shareholder Hestia Capital. In January, it said Hestia had nominated seven people to the company's board of directors, after building a 7.2% stake in the company.

Hestia said the Board had "failed to address a decade of dismal returns, driven by misguided strategy, failed execution and missed opportunities."

The stock has gained 15% in the year to date, while the S&P 500 has gained 14.5%.

-Ciara Linnane

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

07-01-24 0838ET

Copyright (c) 2024 Dow Jones & Company, Inc.