The Brink’s Company Down 12%, Switches Exchange Rate To SICAD II For Reporting, Write Down Related Devaluation Expected

The Brink’s Company (BCO) sank after it says it plans to report results using the Venezuelan government’s SICAD II floating exchange rate of approximately 11 bolivars per US dollar rather than Venezuela’s official exchange rate of 6.3 bolivars per US dollar.

As noted in the business security services company’s 2013 annual report, BCO has been unable to convert at the official Venezuelan exchange rate.

The change will result in a Q1 devaluation remeasurement charge related to the write-down of almost of the company’s $120 million bolivar-denominated net monetary assets. Q1 earnings are expected to be reported in 9 days on April 24.

Shares of BCO are down more than 16% year-to-date including Tuesday’s 12.4% drop to $25.02 per share. Afternoon Tuesday volume of 1.7 million shares is 4.5 times average daily volume.

Shares trade near the low end of a 52-week price range of $24.07 – $35.73 per share.

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