The Pittston Company 2000 Annual Report

Brink's worldwide consolidated revenues totaled $1.5 billion in 2000 compared to $1.4 billion in 1999, a 7% increase. The increase in revenues occurred in both the North America and International regions and was partially offset by the impact of the stronger US dollar versus the Euro relative to a year ago ($68 million). Brink's 2000 operating profit of $108.5 million represented a 5% increase over the $103.5 million reported in 1999. The increase in operating profit was primarily due to increased profits in North America of $6.4 million, which included a $4.9 million settlement associated with an insurance recoverable related to a prior year's robbery loss. This increase was partially offset by a reduction in International results of $1.4 million as the aforementioned foreign exchange effect reduced such operating profits by $3.7 million.

Revenues and operating profits from North American operations of $642.4 million and $55.5 million, respectively, in 2000 represented increases of $58.9 million and $6.4 million, respectively, from 1999. The 10% increase in revenues for 2000 primarily related to growth in the armored car operations and new business. The increase in operating profits of $1.5 million, excluding the effects of the insurance settlement (discussed above), was due to the revenue increase, partially offset by higher labor costs in expanding markets and increased workers' compensation and fuel costs. The improvement in operating profit was primarily attributable to armored car operations (which includes ATM servicing) largely due to increased volumes and, to a lesser extent, improved results in currency and coin processing services, partially offset by lower results in air courier operations.

Revenues and operating profit from International operations in 2000 totaled $820.5 million and $53.0 million, respectively. These amounts represented an increase of $31.5 million and a decrease of $1.4 million, respectively, from 1999. The 4% increase in revenue was primarily due to operations in Latin America and Asia/Pacific, partially offset by a decrease in Europe. The increase in Latin America was primarily due to improvements in Brazil, while improvements in Asia/Pacific occurred in Australia and Hong Kong. Revenue decreases in Europe resulted from the effects of the weaker Euro, partially offset by growth in France. International revenues (primarily Europe) for 2000 were negatively impacted by the strong US dollar ($68 million). International operating profits reflect improvements in the Asia/Pacific region primarily due to lower operating losses in Australia and higher profits in Hong Kong. Latin America reported lower operating profits primarily due to Puerto Rico and Mexico and weaker business conditions in Colombia, partially offset by improvements in operating performance in Brazil, Venezuela and Argentina. Europe reported lower operating profits as results were negatively impacted by the weaker Euro ($3.8 million) and lower operating profits in the Netherlands due in large part to higher labor costs.

Brink's worldwide consolidated revenues totaled $1.4 billion in 1999 compared to $1.2 billion in 1998, a 10% increase. The increase in revenues occurred in both the North America and International regions and was partially offset by the impact in 1999 of the stronger US dollar versus many European and Latin American currencies, relative to 1998. Brink's 1999 operating profit of $103.5 million represented a 5% increase over the $98.4 million of operating profit reported in 1998.

Revenues from North American operations increased $42.3 million (8%), to $583.5 million in 1999 as compared to 1998. North American operating profit in 1999 of $49.1 million was essentially unchanged from 1998. The increase in revenues for 1999 primarily resulted from continued growth in armored car operations, which include ATM services. Operating profits in 1999 did not increase in proportion to revenue primarily due to increased expenditures on information technology. The increased information technology costs were incurred to enhance Brink's capabilities in the transportation of valuables, ATM servicing, cash management and air courier operations as well as to implement communications improvements.

Revenues and operating profit from International operations in 1999 amounted to $789.0 million and $54.4 million, respectively. These amounts represented increases of $82.5 million and $5.1 million, respectively, from 1998. The 12% increase in revenue was primarily due to the acquisition of nearly all of the remaining shares of Brink's affiliate in France in the first quarter of 1998, the acquisition of the remaining 50% interest of Brink's affiliate in Germany late in the second quarter of 1998, growth of the subsidiary in Argentina (a relatively new operation) and an increase in Venezuela. These increases were partially offset by a decrease in revenues in Brazil due to a weaker Brazilian real while revenues from operations in Europe were adversely affected by the relative strength of the US dollar versus many European currencies in 1999. The 10% increase in operating profits was primarily due to improved results from operations and Brink's increased ownership position in France, improved operating performance in Brazil, Argentina and Brink's 20% owned affiliate in Mexico. These increases were partially offset by higher operating losses in Australia resulting from costs associated with its business expansion. Lower results from Venezuela, Chile and Colombia, due to weaker business conditions in those countries, also restrained the increase.