Brink's Co. Contributes To Underfunded Pension
RICHMOND, Va. (AP) ¿ Armored car company Brink's Co. said Thursday it contributed $150 million to its underfunded U.S. pension plan.
The payment helps reduce the plan's underfunding to a deficit of about $109 million. It was underfunded by $308 million at the end of last year.
The contribution consisted of $92.4 million in cash and 2.3 million newly issued shares of stock valued at $57.6 million.
Brink's said in a statement it expects to generate about $30 million in cash flow this year from tax benefits related to the contribution because it was made as a 2008 plan year contribution for income tax reporting purposes.The company said it expects the pension contribution to add 2 cents per share to 2009 earnings and 4 cents per share to next year's earnings. Brink's does not provide earnings-per-share guidance. Brink's also said it expects required pension contributions to be reduced in 2010 and 2011 by a total of $94 million. Shares of Brink's gained 51 cents to $27.05 in morning trading.
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