RICHMOND, Va., Oct. 17, 2014 /PRNewswire/ -- The Brink's Company
(NYSE: BCO) announced its plan to restructure its Netherlands operations in response to a loss
of business with Rabobank, its largest customer in that
country. Brink's expects to incur a charge of $16 million to $22 million against third-quarter
GAAP earnings. The expected charge is related to asset
impairments, severance and other costs associated with the expected
cessation of service to Rabobank on July
1, 2015. The restructuring plan includes the potential
closure of three branches and a workforce reduction of
approximately 600 employees.
In 2013, the Netherlands
operations generated approximately $120
million of revenue at an operating margin rate that was
slightly above the company average. Upon completion of
restructuring activities, the remaining business is expected to
generate annual revenue of approximately $40
million, primarily from retail customers.
In 2011, the country's three largest banks -- Rabobank, ING Bank
and ABN AMRO -- with the support of
the central bank of the
Netherlands, founded a collaborative entity known as
Geldservice Nederland B.V. (GSN). GSN has provided money
processing services for the three banks since 2011. Brink's
currently provides all ATM managed services to Rabobank. In
July 2015, GSN will provide these
services to
Rabobank.
Brink's challenged the validity of the GSN entity, based on
antitrust regulations. The challenge was unsuccessful.
The potential loss of business in the
Netherlands was considered prior to the company's
July 24 disclosure of its goal to
achieve a non-GAAP segment margin rate of 8% by the end of 2016,
and the goal remains unchanged. Brink's will provide
additional details on the restructuring plan on its third-quarter
earnings conference call, which is scheduled for October 30.
About The Brink's Company
The Brink's Company
(NYSE:BCO) is the world's premier provider of secure transportation
and cash management services. For more information, please
visit The Brink's Company website at www.Brinks.com or call
804-289-9709.
Contact:
Investor Relations and Corporate Communications
804.289.9709
Forward-Looking Statements
This release contains both
historical and forward-looking information. Words such as
"anticipates," "assumes," "estimates," "expects," "projects,"
"predicts," "intends," "plans," "believes," "potential," "may,"
"should" and similar expressions may identify forward-looking
information. Forward-looking information in this release includes,
but is not limited to, 2016 non-GAAP segment margin outlook.
Forward-looking information in this document is subject to known
and unknown risks, uncertainties and contingencies, which are
difficult to predict or quantify, and which could cause actual
results, performance or achievements to differ materially from
those that are anticipated.
These risks, uncertainties and contingencies, many of which are
beyond our control, include, but are not limited to:
- continuing market volatility and commodity price fluctuations
and their impact on the demand for our services;
- our ability to continue profit growth in Latin America;
- our ability to maintain or improve volumes at favorable pricing
levels and increase cost and productivity efficiencies,
particularly in the United States
and Mexico;
- investments in information technology and value-added services
and their impact on revenue and profit growth;
- our ability to develop and implement solutions for our
customers and gain market acceptance of those solutions;
- our ability to maintain an effective IT infrastructure and
safeguard confidential information;
- risks customarily associated with operating in foreign
countries including changing labor and economic conditions,
currency devaluations, safety and security issues, political
instability, restrictions on repatriation of earnings and capital,
nationalization, expropriation and other forms of restrictive
government actions;
- the strength of the U.S. dollar relative to foreign currencies
and foreign currency exchange rates;
- the stability of the Venezuelan economy, changes in Venezuelan
policy regarding foreign-owned businesses;
- changes in currency restrictions and in foreign exchange rates,
including fluctuations in value of the Venezuelan bolivar;
- regulatory and labor issues in many of our global operations,
including negotiations with organized labor and the possibility of
work stoppages;
- our ability to identify and execute further cost and
operational improvements and efficiencies in our core
businesses;
- our ability to integrate successfully recently acquired
companies and improve their operating profit margins;
- costs related to dispositions and market exits;
- our ability to identify evaluate and pursue acquisitions and
other strategic opportunities including those in the home security
industry and emerging markets;
- the willingness of our customers to absorb fuel surcharges and
other future price increases;
- our ability to obtain necessary information technology and
other services at favorable pricing levels from third party service
providers;
- variations in costs or expenses and performance delays of any
public or private sector supplier, service provider or
customer;
- our ability to obtain appropriate insurance coverage, positions
taken by insurers with respect to claims made and the financial
condition of insurers, safety and security performance, our loss
experience, and changes in insurance costs;
- security threats worldwide and losses of customer
valuables;
- costs associated with the purchase and implementation of cash
processing and security equipment;
- employee and environmental liabilities in connection with our
former coal operations, black lung claims incidence;
- the impact of the Patient Protection and Affordable Care Act on
black lung liability and the Company's ongoing operations;
- changes to estimated liabilities and assets in actuarial
assumptions due to payments made, investment returns, interest
rates and annual actuarial revaluations, the funding requirements,
accounting treatment, investment performance and costs and expenses
of our pension plans, the VEBA and other employee benefits,
mandatory or voluntary pension plan contributions;
- the nature of our hedging relationships;
- changes in estimates and assumptions underlying our critical
accounting policies;
- our ability to realize deferred tax assets;
- the outcome of pending and future claims, litigation, and
administrative proceedings;
- public perception of the Company's business and
reputation;
- access to the capital and credit markets;
- seasonality, pricing and other competitive industry factors;
and
- the promulgation and adoption of new accounting standards and
interpretations, new government regulations and interpretation of
existing regulations.
This list of risks, uncertainties and contingencies is not
intended to be exhaustive. Additional factors that could cause our
results to differ materially from those described in the
forward-looking statements can be found under "Risk Factors" in
Item 1A of our Annual Report on Form 10-K for the period ended
December 31, 2013, and in our other
public filings with the Securities and Exchange Commission. The
forward-looking information included in this document is
representative only as of the date of this document and The Brink's
Company undertakes no obligation to update any information
contained in this document.
SOURCE The Brink's Company