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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):
March 30, 1998
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 anticipated first quarter 1998 results for Pittston
Burlington Group. The press release, dated March 30, 1998, is
filed as an exhibit to this report and is incorporated herein by
reference.
EXHIBITS
99(a) Registrant's Pittston Burlington Group press release
dated March 30, 1998.
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/ James B. Hartough
Vice President - Corporate
Finance and Treasurer
Dated: March 30, 1998
EXHIBITS
Exhibit Description
99(a) Registrant's Pittston Burlington Group
press release dated March 30, 1998
Exhibit 99(a)
BAX Global Expects Lower
First Quarter Operating Profits
Richmond, VA -- March 30, 1998 -- The Pittston Burlington
Group (NYSE: PZX) announced today that its BAX Global operating
unit is expected to report modest segment operating profits in
the first quarter ending March 31, 1998, compared to segment
operating profits of $10.8 million in last year's first quarter.
As a result, Pittston Burlington Group expects to report a first
quarter loss of approximately $.05 to $.15 per share.
Profitability in BAX Global's domestic operations is being
impacted by, among other things, sluggish domestic air freight
markets which have resulted in lower than expected shipment
volume. In addition, domestic transportation costs in the
quarter are continuing at higher levels, due in part to efforts
to enhance service levels. Transportation costs have also been
impacted by service disruptions caused mainly by equipment
problems which have been largely resolved.
International revenues and operating profits are continuing
to grow at an attractive rate. While both domestic and
international market conditions are generally improving in March,
the international trend has been more favorable than the
domestic.
As more details of the previously announced BAX Process
Innovation (BPI) program and Year 2000 initiatives are developed,
and as a result of integrating BPI into BAX Global's continuous
improvement program, the overall cost for information technology
systems will be reduced from previous estimates. BAX Global's
information technology expenditures, which will include
substantial improvements to information systems, usual recurring
capital costs and spending for Year 2000 compliance initiatives,
are now currently estimated at approximately $60 million per year
for 1998 and 1999, approximately two-thirds of which will be
capitalized.
BAX Global's results are expected to improve during the
balance of 1998 as revenues increase during the seasonally
stronger months and transportation costs are brought more in line
with revenues. Michael T. Dan, President and CEO of The Pittston
Company, stated "BAX Global's highest priorities in 1998 are to
continue to enhance its service quality and to improve
information technology and financial performance. We are
confident that as various improvement efforts are implemented,
BAX Global will further strengthen its quality of service and
provide improved returns for shareholders."
As previously reported, BAX Global has signed an agreement
to acquire, subject to regulatory and judicial approvals and
other conditions to closing, the privately held Air Transport
International LLC ("ATI"). The ATI acquisition is part of BAX
Global's strategy to improve the quality of its service offerings
for its customers by increasing its control over flight
operations. ATI is a U.S. - based airline which operates a
certificated fleet of DC-8 aircraft providing services to BAX
Global and other customers.
First quarter 1998 financial results will be released during
the week of April 27, 1998.
This release contains both historical and forward looking
information. Statements regarding the expected outcome of 1998
first quarter and full year results, BPI and information
technology capital investment projections, and the expected
benefits from the ATI acquisition and BAX Global's continuous
improvement program on financial results involve forward looking
information which is subject to known and unknown risks,
uncertainties and contingencies, which could cause actual
results, performance or achievements to differ materially from
those which are anticipated. Such risks, uncertainties and
contingencies, many of which are beyond the control of the
Burlington Group and The Pittston Company, include, but are not
limited to, overall economic and business conditions, the demand
for the BAX Global's services, pricing and other competitive
factors in the industry, new government regulations, variations
in costs or expenses, the consummation and successful integration
of the ATI acquisition, changes in the scope of BPI and Year 2000
initiatives, delays or problems in the implementation of Year
2000 initiatives by the Burlington Group and/or its suppliers and
customers, and delays or problems in the design and
implementation of BPI.
* * * * * * * * * *
Pittston Burlington Group Common Stock (NYSE-PZX), Pittston
Brink's Group Common Stock (NYSE-PZB) and Pittston Minerals Group
Common Stock (NYSE-PZM) represent the three classes of common
stock of The Pittston Company, a diversified company with
interests in global freight transportation and logistics
management services through BAX Global Inc. (Pittston Burlington
Group), security services through Brink's, Incorporated and
Brink's Home Security, Inc. (Pittston Brink's Group), and in
mining and minerals exploration through Pittston Coal Company and
Pittston Mineral Ventures (Pittston Minerals Group).