The Brink's Company reported today that despite having a second quarter with more operating income than the same quarter in 2006, the company's earning were down 8 percent.
The company was hit with troubling numbers from Europe where a significant decline in U.K. customers hit the company with a $7.5 million impairment charge. Dan also said that North American profits were lower, though he added that "continued strengths in Latin America more than offset lower profits in North America."
Brink's Home Security, a division within The Brink's Co., saw additional revenues at an increase of 9 percent, which the company said was based on an expansion of its customer base. BHS now has approximately 1.175 million subscribers, which is up 9.6 percent from where the company was a year ago. That increase in revenues was accompanied by a gain of $1.9 million based on Hurricane Katrina insurance proceeds.
However, it wasn't all good news for residential security operations. Disconnect rates for Brink's Home Security had increased to 8 percent; CEO Michael Dan said the company's goal is to have that number at an average of 6.5 to 7 percent for the year.
Despite the hiccups in the second quarter, Dan said the company was still on target for its earlier 2007 predictions.
"We continue to expect annual percentage revenue growth in the high single-digits with an operating profit margin that exceeds 7 percent," he said.