Management’s Discussion and Analysis

Nonoperating Income and Expense

Interest Income

		Years Ended December 31,			% change
(In millions)		2003	2002	2001	2003	2002
Interest income	$	6.2	3.1	4.6	100	(33)

Interest income increased in 2003 as compared to 2002 primarily due to the interest earned on the VEBA’s assets, which had a higher average balance in 2003 as a result of contributions, as well as interest income on receivables related to the former coal operations. These types of interest income amounts were classified as discontinued operations in 2002 and 2001.

Interest Expense

		Years Ended December 31,			% change
(In millions)		2003	2002	2001	2003	2002
Interest expense	$	25.4	23.0	32.3	10	(29)

Interest expense increased in 2003 as compared to 2002 primarily due to the inclusion of interest expense related to Dominion Terminal Associates (“DTA”) in the 2003 period. In conjunction with the disposal of its coal operations, the Company transferred its interest in the operations of DTA, a coal terminal in Newport News, Virginia, but retained contingent obligations of related debt. Since the Company no longer has an interest in DTA, its related $43.2 million guarantee of the underlying debt was reclassified to long-term debt from noncurrent liabilities at December 31, 2002. In prior periods, the cost associated with the bonds was included in discontinued operations. In addition, 2003 interest expense was higher due to the accretion of interest related to former coal operations’ retained leases and advance minimum royalty agreements, partially offset by a decrease in U.S. borrowings and lower interest rates.

The decrease in 2002 from 2001 was primarily due to lower average borrowings and interest rates.

Stabilization Act Compensation

		Years Ended December 31,			% change
(In millions)		2003	2002	2001	2003	2002
Stabilization Act compensation	$	-	5.9	-	NM	NM

Stabilization Act compensation of $5.9 million in 2002 represents amounts received by the Company from the U.S. Government pursuant to the Air Transportation Safety and System Stabilization Act.

Other Income (expense), Net

		Years Ended December 31,			% change
(In millions)		2003	2002	2001	2003	2002
Gain on monetization of coal royalty agreement	$	2.6	-	-	NM	-
Gain (loss) on sale of marketable securities		(0.2)	0.8	4.0	NM	NM
Discounts and other fees of accounts receivable securitization program		(1.7)	(1.6)	(4.0)	6	(60)
Other, net		1.6	(4.4)	0.2	NM	NM
Total	$	2.3	(5.2)	0.2	NM	NM

Discounts and other fees associated with the sale of a revolving interest in certain of BAX Global’s accounts receivable increased slightly in 2003 and decreased in 2002 from the prior year. The decrease in 2002 is a result of lower borrowing costs of the conduit that purchases BAX Global’s accounts receivable. The discount on the sale of the receivables is based on the conduit’s borrowing costs.

Minority Interest

		Years Ended December 31,			% change
(In millions)		2003	2002	2001	2003	2002
Minority Interest	$	9.0	3.3	6.9	173	(52)

Changes in minority interest in the last three years are primarily due to variations in the earnings of the Company’s partially owned Venezuelan subsidiary of Brink’s. The Venezuelan subsidiary was profitable in 2001, incurred losses in 2002, and returned to strong profitability in 2003.