PERTH, Scotland - Stagecoach Group PLC reports that its North American subsidiaries, Coach USA and Coach Canada, had much-improved financial results for fiscal 2005.

Stagecoach said Coach USA/Coach Canada had sales for the year ended April 30 of $396 million, up 12.7 percent from fiscal 2004 sales of $351.3 million.

Earnings from continuing operations for the 12 months ended April 30 were $27.4 million, or 7.9 percent higher than fiscal 2004 profits of $25.4 million.

The combined companies' operating margin for fiscal 2005 was 6.7 percent, up from 4.4 percent in fiscal 2004.

Stagecoach said its strongest North America growth during the past year was in its charter and sightseeing markets, which posted a 26.4 percent increase in sales.

Additionally, nearly 29 percent more tickets were sold in fiscal 2005 by its New York Sightseeing service, which operates double-decker tour buses in the city.

At the same time, the line- and commuter-run services operated by Coach USA and Coach Canada were up 7.8 percent during the year ended April 30. The company's school bus and other contract services posted a 6.2 percent revenue gain for the year.

Stagecoach noted that Coach USA and Coach Canada have launched new Web sites designed to further simulate growth by incorporating online sales. To see them, go to www.coachusa.com or www.coachcanada.com.

Capital spending by Coach USA/Coach Canada in fiscal 2005 totaled $61.59 million, versus $42.09 million in fiscal 2004.

The company continued to reduce its losses from the disposal of operations. Its loss in fiscal 2005 was $10.75 million, down from $12.94 million in fiscal 2004.

Stagecoach also reported that its fuel hedging operation helped cap some of its variable diesel fuel costs. Had it not had a hedging program, a $10 a barrel increase in the price of diesel fuel would have impacted its annual fuel costs by $18 million to $19 million.