COMMENTS FROM THE PRESIDENT AND CEO
The organic sales growth continued to be weak at 0 percent in the third quarter due to negative organic sales growth in North America and severe market conditions in France, Portugal and Spain.
We have achieved price increases on par with wage cost increases, and I remain confident that this also will be the case for the full year of 2012. The operating margin in the third quarter was 0.5 percent behind previous year. The market conditions in Spain and the margin decline in the U.S. operations are the main reasons, while Security Services Europe gradually is regaining margins.
The free cash flow for the first nine months improved compared to last year, but we will continue to be restrictive on acquisitions until we have restored the financial target of free cash flow to net debt of 0.20.
We have initiated measures to better align Securitas with future customer needs and expectations, and to further increase our investment pace in technology. The Mobile and Monitoring and Security Services Europe business segments will be merged to improve the coordination and speed of technology implementation. A cost savings program has been initiated in North America and in Europe, which is expected to be finalized during the fourth quarter. Total savings are estimated to approximately MSEK 300 per annum, effective as of January 1, 2013, and the restructuring cost will be approximately MSEK –360.
In addition, a cost savings program will also be initiated in Spain, within the business segment Security Services Ibero-America, with estimated annual savings of MSEK 70 as of 2013. The restructuring cost of approximately MSEK –70 will be determined in the fourth quarter 2012.
President and Chief Executive Officer
PRESENTATION OF THE INTERIM REPORT
An information meeting will be held on November 7, 2012, at 15.00 p.m. (CET).
The information meeting will take place at Securitas‘ head office at Lindhagensplan 70 in Stockholm.
The meeting will be webcast at www.securitas.com/webcasts
To participate in the telephone conference during the information meeting, please dial in five minutes prior to the start of the conference call, from:
The United States: + 1 866 682 8490
Sweden: + 46 (0) 8 506 307 79
United Kingdom: + 44 (0) 1452 555 131
A recorded version of the webcast will be available at www.securitas.com/webcasts after the meeting.
For further information, please contact:
Micaela Sjökvist, Head of Investor Relations, + 46 10 470 3013
Gisela Lindstrand, Senior Vice President, + 46 10 470 3011
Securitas is a global knowledge leader in security. From a broad range of services of specialized guarding, technology solutions and consulting and investigations, we customize offerings that are suited to the individual customer’s needs, in order to deliver the most effective security solutions. Everywhere from small stores to airports, our 300 000 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 Wednesday, November 7, 2012.