Securitas AB Interim Report January–June 2009
Friday, August 07, 2009
• Total sales MSEK 32,332 (26,276)
• Income before taxes MSEK 1,394 (1,163)
• Net income, continuing operations, MSEK 978 (840)
• Earnings per share, continuing operations, SEK 2.68 (2.30)
COMMENTS FROM THE PRESIDENT AND CEO
The economic environment remains difficult and a large number of our customers are under continuous pressure to reduce cost, including their total spend in security. Our strategy is to defend the profitability in our contract portfolio and to support our customers in finding the most cost efficient security solutions and to adapt the services and the scope of the services to the present situation.
Securitas showed an organic sales growth in the first six months of 0 percent (7), which we estimate to be in line with the security market development, and an operating result of MSEK 1,752 (1,430), primarily supported by the weaker Swedish krona but also by a positive real change of 2 percent. In all business segments the price increases in the contract portfolio were approximately on par with wage cost development ¬during the period.
Even though new sales have been good in the first six months in Security Services North America, contract coverage reductions outweigh the improvement. The recession generates improved opportunities for acquisitions in North America, and we intend to selectively exploit them as they occur. The organic sales growth in Security Services Europe declined in the second quarter compared to the first quarter, primarily driven by harsh market conditions in some major markets, lower extra sales and lower inflation. Mobile and Monitoring showed good organic sales growth.
The focus on protecting our margins pays off and the operating margin in the Group remains on the same level as the corresponding period last year, 5.4 percent (5.4), in spite of higher bad debts. In Security Services North America, the positive trend of portfolio refinement and improving the operating margin continued, achieving an improvement compared to the same period last year. In Security Services Europe the operating margin declined in the period, due to lower extra sales, increased bad debts and investments in security training, expertise and security solutions. In Mobile and Monitoring, the operating margin improved as sales investments gradually have been optimized.
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
Alf Göransson, President and CEO,
+46 10 470 3000
Gisela Lindstrand, Senior Vice President
Corporate Communications and Public Affairs,
+46 10 470 3011
Micaela Sjökvist, Head of Investor Relations,
+46 10 470 3013
An information meeting will be held on August 7, 2009, at 9.30 a.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=166875
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 August 11 on: +44 (0)20 7031 4064 and +46 (0)8 505 203 33, access code: 837789.
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 8.00 a.m. (CET) on Friday, August 7, 2009.