Brink's Lowers 2015 Outlook On Weak U.S., Slow Brazil Economy

The Brink's Co. said Tuesday it is lowering its 2015 outlook and adjusting its 2016 outlook to the lower end of the range, hurt by weak operating results in the U.S., the slow economy in Brazil and continued pain being wrought by the strong dollar. The security and cash management services company is now expecting 2015 adjusted per-share earnings to range from $1.40 to $1.50, down from a prior range of $1.55 to $1.75. For 2016, it expects adjusted EPS to come at the low end of its $2.00 to $2.40 range. Revenue is expected to total $3.0 billion for 2016, down from earlier guidance of $3.4 billion. "We are continuing to execute on our strategy to differentiate our service offerings, reduce costs, exit unprofitable markets, and drive a change in our culture," Chief Executive Tom Schievelbein said in a statement. The company will discuss its strategy at an investor day scheduled for later Tuesday. The guidance comes a day after hedge fund Starboard Value L.P. increased its stake in Brink's to 12.4%. Starboard sent a letter to Brink's senior management and board of directors, highlighting the company's "long track record of poor performance and shareholder frustration," and proposed ways to create value for shareholders. Shares were not yet active in premarket trade, but are up 22% in the year so far, while the S&P 500 has lost 3.5%.

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