COMMENTS FROM THE PRESIDENT AND CEO
Strong organic sales growth
Organic sales growth continued to be strong also in the third quarter, driven by good portfolio development and extra sales still at relatively high levels. Market dynamics in the US remain favorable while most of the extra security needs in Europe are short term in its nature and will reduce in the coming quarters. This fact, in combination with a few major contract losses and historically high comparatives, will reverse the positive organic sales growth trend in Security Services Europe in the coming quarters, but we expect it to recover during the second half of 2017.
Our investments in protective services during recent years also resonates very well in the market, and our efforts to optimize the customers’ security spend allows us to presently grow faster than the security markets in the US and Europe as well as in many of the Ibero-American countries.
Earnings per share and operating margin improved
Earnings per share improved by 7 percent in the third quarter and by 13 percent in the period January to September 2016, adjusted for changes in exchange rates. The operating income during January to September improved by 16 percent compared to the same period last year, adjusted for changes in exchange rates. The operating margin was 5.5 percent (5.5) in the quarter and improved to 5.1 percent (4.9) for the first nine months.
Continued strong development of security solutions and electronic security
Security solutions and electronic security continued to increase in line with our expectations. We believe that we can continue to increase our sales of security solutions and electronic security at a high pace in the coming years and make this a substantial part of the Group’s total sales. The completed acquisition of Diebold’s North American Electronic Security business on February 1, 2016 also makes an important contribution in accelerating our transformation.
Alf Göransson President and Chief Executive Officer
PRESENTATION OF THE INTERIM REPORT
Analysts and media are invited to participate in a telephone conference on November 8, 2016 at 09:30 a.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. To participate in the telephone conference, please dial in five minutes prior to the start of the conference call:
The United States: + 1 855 269 2605 Sweden: + 46 (0) 8 519 993 55 United Kingdom: + 44 (0) 203 194 0550
To follow the audio cast of the telephone conference via the web, please follow the link www.securitas.com/investors/webcasts. A recorded version of the audio cast will be available at www.securitas.com/investors/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 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 08.00 (CET) on Tuesday, November 8, 2016.