The Brink's Company Reports First Quarter Results; BAX Global Posts Solid Results; Brink's, Incorporated Performance Trails Strong 2004 Quarter; Brink's Home Security Maintains Strong Growth and Performance

Business Wire, May 4, 2005

RICHMOND, Va. -- The Brink's Company (NYSE: BCO) today reported after-tax income from continuing operations for the first quarter of 2005 of $15.8 million or $0.28 per diluted share compared to $17.2 million or $0.32 per diluted share in the prior-year period.

Revenue in the first quarter of 2005 was up 12% over last year's first quarter to $1.2 billion, reflecting substantial increases from each of the Company's business units. Revenues at Brink's, Incorporated and BAX Global benefited from stronger European currencies relative to the U.S. dollar. The effects of the weaker U.S. dollar contributed about two percentage points of the increase in revenues.

The Company reported operating profit of $36.8 million for the quarter ended March 31, 2005, a 9% increase from $33.7 million in the year earlier period. Operating profit at both Brink's Home Security and BAX Global improved in the current quarter versus the quarter a year earlier. Higher operating profit from the Company's business segments was partially offset by an increase in costs of former coal operations and higher corporate expenses. Income tax expense was higher in the 2005 quarter primarily due to newly established tax valuation allowances related to certain European operations.

Net income for the first quarter of 2005 was $13.6 million, or $0.24 per diluted share, including a loss from discontinued operations of $2.2 million, or $0.04 per diluted share. In the first quarter a year ago, the Company reported net income of $25.8 million, or $0.47 per diluted share, which included income of $8.6 million, or $0.15 per diluted share, from discontinued operations primarily relating to the sale of natural resources assets.

First Quarter Business Unit Performance

Brink's, Incorporated ("Brink's")

Brink's revenue increased 11% to $509 million in the first quarter of 2005 from $458.0 million in the prior-year period. International revenue in the quarter increased 16% over the year-ago quarter, 12% excluding the net benefit of currency translation. The revenue growth was driven by an increase in activity in Europe reflecting acquisitions in Greece, Luxembourg, Scotland and Ireland, an increase in armored car business levels, especially in France, and higher volumes in Brink's Global Services. Revenues were also up in South America due largely to business growth and stable market conditions in Venezuela. North American revenue increased 3% over the first quarter of 2004, reflecting higher U.S. and Canadian revenues across all lines of service and the positive impact of foreign currency exchange rates on Canadian operations.

Brink's operating profit in the quarter ended March 31, 2005, was $30.3 million, down from $32.8 million recorded in the first quarter of 2004. Operating profit declined in both International and North American operations. Internationally, better performance in South America was more than offset by a decline in Europe as the operations in both the Netherlands and Belgium experienced volume declines resulting in inefficient cost structures. Operating profit in North America declined slightly year-over-year to $12.7 million from $12.9 million mainly due to higher employee benefit costs in the United States.

Brink's Home Security

Revenue at Brink's Home Security increased 12% to $91.9 million in the first quarter of 2005, as compared to the same period last year, due primarily to continued growth in the subscriber base. Operating profit in the first quarter was a record $22.5 million, 16% higher than in the prior year's first quarter. The increase in operating profit from recurring services resulted primarily from the growth of the subscriber base.

The annualized disconnect rate for the first quarter of 2005 improved to 5.8% from 6.4% in the year-ago quarter. Brink's Home Security installed 39,300 new subscribers during the quarter, a 15% increase over the number of new subscribers added in the first quarter of 2004, and ended the quarter with approximately 947,100 subscribers generating monthly recurring revenue of $26.9 million (see Non-GAAP Reconciliations for a reconciliation of monthly recurring revenue to reported revenue).

BAX Global

Revenue at BAX Global increased 12% to $623.5 million in the first quarter of 2005 compared to the prior-year period. In the Americas region, revenue increased 11% over last year's first quarter. The increase reflected higher fuel surcharges and an overall 5% improvement in U.S. shipping volumes including strong growth in BAX Global's freight forwarder service and higher export activity. Volumes for higher priced expedited freight were down as the effects of higher fuel prices contributed to a shift by customers to deferred services. International revenue increased 15% (11% excluding the benefit of foreign currency translation) versus the prior year period, reflecting robust Asia-Pacific activity and modest improvement in Europe.

Operating profit at BAX Global improved to $8.2 million for the first quarter of 2005 compared to $3.1 million for the same period in 2004. The current quarter's performance reflects higher volume and improved margins in Asia-Pacific from logistics and freight forwarding activities and improvement in operating profit in Europe, partially offset by lower operating profit in the Americas due to a shift in product mix.