Securitas AB Full Year Report January–December 2009
Thursday, February 04, 2010
• Total sales MSEK 62,667 (56,572)
• Income before taxes MSEK 3,022 (2,617)
• Net income, continuing operations, MSEK 2,118 (1,890)
• Earnings per share, continuing operations, SEK 5.80 (5.18)
• Proposed dividend SEK 3.00 (2.90)
COMMENTS FROM THE PRESIDENT AND CEO
The systematic shift to more focus on profitability in Securitas has proved to be the right way forward in the present economic environment. The continuous trend of improvements in the operating margin is also reflected in the 2009 results, just like it was the year before. We intend to continue along this route of defending the margins and differentiating us from competition by our security knowledge, ability and competence of adding more value to our customers.
The operating margin in the Group improved compared to last year, 6.0 percent (5.8). Benefits from lower employee turnover and the final outcome from employee related accruals positively impacted the fourth quarter, which resulted in a strong operating margin in the quarter of 7.0 percent (6.1). The Group’s operating income for 2009 was MSEK 3,756 (3,271) and the real change was 6 percent. The year-on-year improvement of the earnings per share was 11 percent.
Security Services North America continued for the fourth consecutive year to improve the operating margin, through the systematic refinement of the customer portfolio, cost savings and the benefits from lower employee turnover during 2009. Security Services Europe, with a strong fourth quarter largely because of the final outcome from employee related accruals, maintained the operating margin in 2009 compared to last year in spite of increased bad debt provisions and losses. In all business segments the price increases in the respective contract portfolios were approximately on par with the wage cost development during 2009.
In Security Services North America, reductions in existing customer contracts continued to affect the organic sales growth negatively. The insourcing of guarding services in the energy sector, reductions in the automotive customer segment and lower extra sales have also impacted the organic sales growth negatively. The organic sales growth in Security Services Europe remained on the same level in the fourth quarter as in the third quarter 2009. Mobile and Monitoring continue to show good organic sales growth.
Going into 2010 the economic environment is deemed to remain difficult in a slow and uneven recovery of the global economy. A large number of our customers are still under pressure to reduce cost, including their total spend in security services. Our strategy is to continue to defend the profitability in our contract portfolio and to support our customers in finding the most cost efficient security solutions in order to adapt the services and its scope to the current situation.
During 2009, we have acquired 15 companies with a total of approximately 14,000 employees and MSEK 1,300 in sales. The current economic environment generates improved opportunities to make acquisitions both in mature and new markets, and we will continue to selectively exploit the opportunities as they occur.
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
Micaela Sjökvist, Head of Investor Relations,
+46 10 470 3013
Gisela Lindstrand, Senior Vice President
Corporate Communications and Public Affairs,
+46 10 470 3011
An information meeting will be held on February 4, 2010, at 14.30 p.m. CET.
The information meeting will take place at Securitas‘ head office, Lindhagensplan 70, Stockholm.
To follow the information meeting via telephone (and participate in Q&A session), please register via the link https://eventreg1.conferencing.com/webportal3/reg.html?Acc=457866&Conf=170622
and follow instructions, or call +44 (0)20 7162 0077 or +46 (0) 8 505 201 10.
The meeting will be webcasted at www.securitas.com/webcasts
A recorded version of the web cast will be available on www.securitas.com/webcasts after the information meeting and a telephone recorded version of the information meeting will be available until midnight on February 5 on: +44 (0)20 7031 4064 and +46 (0)8 505 203 33, access code: 856168.
Securitas is a knowledge leader in security. By focusing on providing security solutions to fit each customer‘s needs, Securitas has achieved sustainable growth and ¬profitability in 40 countries in North America, Europe, Latin America, Asia, Middle East and Africa. Everywhere from small stores to ¬airports, our 240,000 employees are making a difference.
Securitas AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication
at 13.00 p.m. (CET) on Thursday, February 4, 2010.