I've been doing a little work on Brinks lately, and I see an interesting trend on the BAX unit.
Each year, no matter how poor results are in the first three quarters, BAX always does much better in the 4th quarter. That makes sense to me for the Americas, where they have a fixed cost integrated network.
The part of this that I don't understand is the International piece. Why would international profit margins get so much better in the 4th quarter? Isn't that mostly a variable cost business? So, why would international profit margins always get better for BAX in the 4th quarter?
BAX's International volumes are heavily influenced by seasonal traffic. In Q4 there is massive output from the Far East and this can be good margin business too. I would have thought this was not only the case at BAX but at most forwarders.