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The Brink's Company Message Board

  • bluecheese4u bluecheese4u Jan 31, 2008 1:35 PM Flag



    International Operations Drive Strong Earnings Growth in Fourth Quarter
    Brink’s, Inc. and Brink’s Home Security Deliver Record Full-Year Profits
    Management Expects Higher Profits in 2008

    RICHMOND, Va., January 31, 2008– The Brink’s Company (NYSE: BCO), a global leader in security-related services, reported fourth-quarter income from continuing operations of $54.4 million or $1.16 per share, up from $39.6 million or 85 cents per share in last year’s fourth quarter. The increased earnings were driven primarily by strong profit growth at Brink’s, Incorporated (“Brink’s”). Profits at Brink’s Home Security (“BHS”) improved slightly over year-ago results.
    Fourth-quarter revenue was $882.8 million, up 18.5% (11% on a constant currency basis) from $745.1 million in the fourth quarter of 2006. Approximately 60% of fourth-quarter 2007 revenue was generated outside North America (“international operations”). Operating profit was $90.0 million, up 40.2% from $64.2 million in the year-ago period. The positive effect of translating Brink’s international earnings into U.S. dollars added approximately $5 million to operating profit in the fourth quarter of 2007.
    Michael T. Dan, chairman, president and chief executive officer of The Brink’s Company, said: “I’m pleased to report that we concluded another solid year with a very strong fourth-quarter performance, and I believe we are well-positioned for further growth in earnings and cash flow in 2008. At Brink’s, Incorporated, the strong improvement in fourth-quarter earnings was driven by revenue and profit growth in our European and Latin American operations and significantly lower safety and security costs worldwide. The outlook for continued improvement from international operations is promising, and our cash logistics business should drive profit growth in North America.

    Our financial goal for this business in 2008 is to deliver annual organic revenue growth in the high-single-digit percentage range with operating profit margins at or above 8%. Looking beyond this year, to the end of 2010, our goal is to sustain this rate of revenue growth while boosting operating margins to 10%.
    “Fourth-quarter profits at BHS were up slightly versus last year’s strong fourth-quarter due primarily to ongoing weakness in the housing sector and higher marketing expenditures. Despite the unfavorable market conditions, strong cost controls helped BHS achieve record profits for the full year and our revenue and subscriber base continued to grow. Looking ahead, and assuming continued weakness in housing, we believe we can deliver 10% or better increases in revenue and profit in 2008 while growing our subscriber base in the high-single-digit percentage range.”
    Dan added: “The Brink’s Company’s outstanding fourth quarter and full-year results once again demonstrate the earnings potential of our two businesses, and the internal trends we’re seeing point to continued strength in 2008. We have a very strong balance sheet, and are therefore able to pursue additional growth in our two security businesses as we seek opportunities to leverage our brand and expertise into new security-related markets. We are well-positioned to deliver substantial growth in earnings and cash flow in 2008 and beyond. As long as we continue to execute, and we have a demonstrated track record of doing so, I’m confident that the market will recognize this and shareholders will be

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