BAX Global reports improved profits, revenues

BAX Global reports improved profits, revenues

   BAX Global, the transportation and forwarding subsidiary of the Brink’s conglomerate, increased its fourth quarter operating profit 60 percent to $26 million from $16 million a year earlier, and brought its Americas operations back to profitability.

   BAX also boosted its worldwide revenue 21 percent in the fourth quarter to $691 million from $569 million in the prior-year period. In the Americas region, revenue increased 20 percent to $320 million. This was due to continued improvement in U.S. shipping volumes, including an increase in higher priced expedited freight as a result of better economic conditions, as well as growth in freight forwarder service and higher export activity. International revenue outside the Americas increased 23 percent to $320 million, before accounting eliminations, “reflecting robust Asia/Pacific activity and the effects of the weaker U.S. dollar relative to European and some Asia/Pacific currencies,” the Brink’s parent company said.

   “BAX Global had its best quarter in several years, particularly in the Americas where we experienced further strengthening of shipping volumes related to the improving U.S. economy and a strong holiday and year-end shipping season,” said Michael T. Dan, chairman, president and chief executive officer of the Brink’s conglomerate.

   BAX’s Americas operations made an operating income of $10 million in the fourth quarter, whereas it broke even in the same quarter of 2003. Brink’s said BAX's latest quarter’s performance reflected improved North American operations, continued solid results in Asia/Pacific from logistics and freight forwarding activities and improvement in operating profit in Europe.

   For the year, BAX’s operating income jumped to $56 million from $3 million in 2003. The Americas region made a profit of $23 million in 2004, whereas it lost $31 million in 2003. BAX’s revenue was $2.4 billion, up 22 percent on $2 billion in 2003. Operating margin as a percentage of revenue increased to 2.3 percent in 2004 from 0.2 percent in the previous year.

   Brink’s predicted BAX Global should see further improvement from better market conditions in the United States and Europe this year, and get new logistics and heavy freight business.