Brink's Investigates Unpaid Taxes

Wed Aug 4, 2004

NEW YORK (Reuters) - Security company Brink's Co. (BCO.N: Quote, Profile, Research) on Wednesday said it is investigating certain unpaid customs duties and taxes of about $3 million related to one of its non-U.S. business units, and may revise its second-quarter results in its quarterly filings next week.

The Richmond, Virginia-based company, whose shares fell about 14 percent, said it has been advised by local counsel that there may be civil and criminal penalties and interest imposed for the nonpayment of those duties and taxes.

Brink's, which reported second-quarter earnings earlier on Wednesday, said its business unit may be subject to potential penalties of up to $85 million, excluding interest. The estimates are based on the investigations to date and could change materially, the company said.

"The investigations is ongoing and the company has begun implementing changes to prevent similar situations in the future," Brink's said in a statement.

The company said it expects it may revise its results when it files its 10-Q statement with the U.S. Securities and Exchange Commission by Aug. 9.

The company earlier on Wednesday said earnings for the second quarter rose to $19.8 million, or 36 cents a share, compared with $6.1 million, or 11 cents a share, a year earlier. Results did not include any possible revision due to the current probe.

Shares of Brinks fell $4.40 at $27.65 on the New York Stock Exchange.

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