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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):
September 15, 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
On September 15, 1998, the Registrant issued the press
release that is filed as an exhibit to this report and is
incorporated herein by reference.
EXHIBITS
99(a) Registrant's press release dated September 15, 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/ Robert T. Ritter
Vice President and
Chief Financial Officer
Dated: September 15, 1998
EXHIBITS
Exhibit Description
99(a) Registrant's press release dated September 15, 1998.
Exhibit 99(a)
[PITTSTON LOGO] The Pittston Company
1000 Virginia Center Parkway
PRESS RELEASE P. O. Box 4229
Glen Allen, VA 23058-4229
Tel 804.553.3600
Fax 804.553.3760
Contact: IMMEDIATE RELEASE
Investor Relations
804.553.3708
Pittston BAX Group Revises Information Technology Initiatives
and Announces Financial Impact
Richmond, VA - September 15, 1998 - The Pittston Company said
today that its subsidiary, BAX Global Inc., is completing its
review of BAX Global's information technology (IT) initiatives and
of its organizational structure. As a result, and in order to
reflect the effects of continued uncertainty in international
markets, the Pittston BAX Group expects to expense certain
previously capitalized IT costs and to record expenses, primarily
related to the collectibility of trade receivables, at a level
higher than otherwise would have been reported during the third
quarter ending September 30, 1998. It is currently estimated that
such costs and expenses will total up to $35 million on a before-tax basis.
C. Robert Campbell, who recently joined BAX Global as
President and Chief Executive Officer, said, "We are realigning our
organization to provide improved customer service and to enhance
prospects to grow the company. These efforts have included a
thorough reexamination of our IT strategy to better align our
current and planned IT initiatives with our expected needs. As a
result, certain IT projects have been terminated or redefined.
Accordingly, costs of such projects, which were previously
capitalized, will now be charged against income during the current
quarter. Furthermore, we expect that IT cash outlays for
substantial improvements to information systems, usual recurring
capital costs and spending for Year 2000 compliance initiatives
through 1999 will be reduced to approximately $100 million."
In addition, due to recent deepening economic difficulties in
foreign markets, particularly in Asia and Latin America, and an
examination of customer accounts, BAX Global will increase its
provisions for bad debt expense in the current quarter. These
increased provisions are included in the estimate of additional
current quarter costs and expenses above.
Mr. Campbell commented, "We believe that we are beginning to
see signs of progress. We are particularly pleased with the early
success of new products introduced into the U. S. market in July.
Initiatives to improve customer service and margins are also moving
along nicely. Looking ahead, we are optimistic that these and
other actions will return BAX Global's performance to a level of
which we can be proud."
This release contains forward-looking information. Statements
regarding projected spending and expenses, expected performance and
progress, customer service and margin improvements and the expected
benefit of information technology initiatives 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 Pittston BAX Group and The
Pittston Company, include, but are not limited to, overall economic
and business conditions, new government regulations and/or
legislative initiatives, levels of volume, revenue, costs or
expenses, competition, changes in the scope of improvements to
information systems and Year 2000 initiatives, the continued
success of new products, delays or problems in the implementation
of Year 2000 initiatives by the Pittston BAX Group or its suppliers
and customers, and delays or problems in the design and
implementation of improvements to information systems.
* * * * * * * * * *
Pittston BAX 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 BAX 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 Minerals Ventures (Pittston
Minerals Group).