· Total sales MSEK 14,775 (14,870)
· Organic sales growth 3 percent (–1)
· Operating margin 4.8 percent (5.5)
· Earnings per share SEK 1.01 (1.24)
· Free cash flow/net debt 0.13 (0.35)
COMMENTS FROM THE PRESIDENT AND CEO
The positive sales trend from the last quarter of 2010 continued in the first quarter of this year, and the organic sales growth amounted to 3 percent, and including acquisitions, the real sales growth was 10 percent. Eight major acquisitions have been completed so far in 2011, adding an annual sales value of approximately MSEK 2,700 and approximately 14,500 employees.
In North America the security market is recovering well. The sales of security solutions, with the added value tools and services that gradually have been introduced to existing and new customers, continued to increase its share of total sales.
In Europe, the growth was good in macro-economically better performing countries, while the organic sales growth was more modest in countries still struggling with their financial situation. In Europe in general, the price pressure remains high and even though winning and losing contracts is the normal course of the business, the losses have been exceptionally high in the first quarter and are consequently causing a negative impact on the operating margin. Actions are taken to improve the situation, short term as well as in longer term.
In the short perspective, focus and attention is paid to labor markets recovering under competitive market conditions, and thus managing the price and wage cost balance. In the longer perspective, we continue to pursue our strategy of specialization and segmentation, strengthening our capabilities in technology and added value tools and services, and to selectively make acquisitions in mature and new markets with the target to be present in approximately 60 countries within three years.
President and Chief Executive Officer
PRESENTATION OF THE INTERIM REPORT
Analysts and media are invited to participate in a telephone conference on May 4 at 2:15 p.m. (CET) where Securitas CEO Alf Göransson will present the report and answer questions. The telephone conference will also be audio cast live via Securitas web. Please note! As the date for the Interim report coincides with the Annual General Meeting, no information meeting will take place at Securitas headquarters at Lindhagensplan in Stockholm.
To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:
The United States: + 1 866 458 40 87
Sweden: + 46 (0) 8 505 598 53
United Kingdom: + 44 (0) 203 043 24 36
To follow the audio cast of the telephone conference via the web, please follow the link
A recorded version of the webcast will be available at www.securitas.com/webcasts after the telephone conference.
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
Securitas is a knowledge leader in security, focusing on providing security solutions to fit each customer’s needs in 45 countries in North America, Europe, Latin America, Asia, Middle East and Africa. Everywhere from small stores to airports, our 280,000 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 1.00 p.m. (CET) on Wednesday, May 4, 2011.
This information was brought to you by Cision http://www.cisionwire.com
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