Brink's To Overhaul Business To Meet 2015-16 Margin Targets
The Brink's Company said it is overhauling the way it does business to ensure it is in the right position to achieve its future financial goals. The cash transportation and management company is targeting a 2015 segment margin rate of 6.5% to 7% on $3.8 billion of revenue. Brink's is still expecting its 2014 margin rate to range from 5.5% to 6.0% on revenue of about $3.7 billion. For 2016, it is targeting a margin rate of 8% and per-share earnings of $2.50 to $3.00. To meet those targets, the company is streamlining its geographic divisions into two segments from four and eliminating a number of senior roles and structures. The two segments are its five largest markets, namely the U.S., France, Mexico, Brazil and Canada, and the rest of the world. The company is expecting the new structure to generate cost savings of $10 million to $15 million in 2015. Shares were up 1.2% in midmorning trade, but have lost 36% in the year so far, while the S&P 500 has gained about 11%.
Copyright © 2014 MarketWatch, Inc.