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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 16, 1997
THE PITTSTON COMPANY
(Exact Name of registrant as specified in its charter)
Virginia 1-9148 54-1317776
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of Incorporation)
1000 Virginia Center Parkway
P. O. Box 4229
Glen Allen, VA 23058-4229
(Address of principal (Zip Code)
executive offices)
(804)553-3600
(Registrant's telephone number, including area code)
Item 5. Other Events
The Pittston Company has issued a press release
addressing special expenses, expected results and other items.
The press release, dated July 16, 1997, is filed as an exhibit to
this report and is incorporated herein by reference.
EXHIBITS
99(a) Registrant's Burlington Group press release dated July
16, 1997.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
THE PITTSTON COMPANY
(Registrant)
By /s/ Austin F. Reed
Vice President, General Counsel
and Secretary
Dated: July 16, 1997
EXHIBITS
Exhibit Description
99(a) Registrant's Burlington Group
press release dated July 16, 1997
Exhibit 99(a)
Pittston Burlington to Redesign Systems, Take Special Charge;
and Expects to Meet Full Year Estimates
Richmond, VA -- July 16, 1997. The Pittston Burlington Group
(NYSE-PZX) announced today that it expects to incur in the second
quarter special one time expenses currently estimated at about
$13 million ($.40 per share) related to the previously announced
redesign of the Burlington Air Express ("Burlington") business
processes and new information systems architecture. Second
quarter results are expected to be released on July 24, 1997.
Burlington has made significant advances in the development of
its information technology and customer service redesign program.
As previously indicated, the program's primary goal is to help
achieve a strategic objective of providing the highest level of
customer service and information technology in the logistics
management and freight transportation industry. This program
will be implemented over the next 24 months. A number of
initiatives have already been identified and are currently being
implemented with the assistance of an outside consulting firm.
Annualized cost savings from these initiatives are currently
projected at $5-10 million. Program expenses incurred in the
second quarter represent most of the consulting fees and other
project expenses expected to be incurred in the development of
this redesign program.
Burlington has begun the process of establishing a certificated
carrier operation in order to provide alternative lift
capabilities to augment those available through other
contractors. In addition to initial expenses related to this
strategy, domestic transportation costs in the second quarter
increased over the prior year as a result of additional capacity
designed to improve on time customer service and meet rising
demand in high growth markets such as the aerospace and
electronics industries. Also, declining domestic shipments in
the automotive sector adversely impacted domestic second quarter
results. International operating results in the second quarter
are expected to show improvement over the prior year's quarter.
Burlington's second quarter results from ongoing operations
before the special expenses mentioned above are expected to be
approximately $.30 per share.
Joseph C. Farrell, Chairman and CEO of Burlington, stated "We are
optimistic about the outlook for Burlington's business for the
balance of 1997 and beyond. We expect full year results to be in
line with current estimates of $1.90 - $2.00 per share exclusive
of any special expenses." A number of new contracts for
Burlington's logistics and transportation services have been
concluded this year which are expected to further improve
international and domestic volumes during the second half. The
recently completed acquisition of Cleton & Co., one of the
Netherlands' leading logistics providers, will also enhance
international revenue growth. Some of the initial benefits of
the process redesign program are also expected to benefit second
half results. The recent FAA proposal to limit payloads of
converted Boeing 727 aircraft is not expected to materially
impact Burlington's second half transportation costs.
This release contains both historical and forward looking
information. In particular statements herein regarding the
benefits from the redesign initiatives and the impact of the
automotive market, new business contracts and implementation of
recent acquisitions on second half results are subject to known
and unknown risks, uncertainties and contingencies, many of which
are beyond the control of Burlington, which may cause actual
results, performance or achievements to differ materially from
those which are anticipated. Factors that might affect such
forward looking statements include, among others, overall
economic and business conditions, the demand for Burlington's
services, pricing and other competitive factors in the industry,
new government regulations, and uncertainty about the
implementation of systems initiatives and the integration of
acquisitions.
* * * * * * * * * *
Pittston Burlington Group Common Stock, Pittston Brink's Group
Common Stock and Pittston Minerals Group Common Stock (each
listed on the New York Stock Exchange) represent the three
classes of common stock of The Pittston Company. Pittston is a
diversified company with interests in global freight
transportation and logistics management services through
Burlington Air Express Inc. (Pittston Burlington Group), security
services through Brink's Incorporated and Brink's Home Security,
Inc. (Pittston Brink's Group) and in coal through Pittston Coal
company and in gold mining and metals exploration through
Pittston Mineral Ventures Company (Pittston Minerals Group).