Securitas AB Interim Report January–September 2009
Wednesday, November 11, 2009
• Total sales MSEK 47,433 (40,532)
• Income before taxes MSEK 2,148 (1,880)
• Net income, continuing operations, MSEK 1,508 (1,358)
• Earnings per share, continuing operations, SEK 4.13 (3.72)
COMMENTS FROM THE PRESIDENT AND CEO
Securitas showed an organic sales growth in the first nine months of –1 percent (6), which we ¬estimate to be in line with the security market development. The economic environment remains difficult and a large number of our customers are under 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 in order to adapt the services and the scope of the services to the present situation.
In Security Services North America, reductions in existing customer contracts continued to affect the organic sales growth negatively. In the third quarter, insourcing of guarding services in the energy sector, further reductions in the automotive segment and lower extra sales have impacted the organic sales growth negatively. The organic sales growth in Security Services Europe declined, ¬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 operating result was MSEK 2,696 (2,297) in the first nine months, primarily supported by the weaker Swedish krona but also by a positive real change of 2 percent. The operating margin in the Group remains on the same level as the first nine months last year, 5.7 percent (5.7), in spite of higher bad debt losses. In the third quarter, all business segments improved the operating ¬margin compared to last year. The focus on profitability, operational efficiency improvements, lower employee turnover and cost savings are key factors behind the development. In all business ¬segments the price increases in the contract portfolio were approximately on par with wage cost development during the period.
The current recession generates improved opportunities to make acquisitions both on mature and on new ¬markets, and we intend to selectively exploit them as they occur.
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 November 11, 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://eventreg2.conferencing.com/webportal3/reg.html?Acc=441461&Conf=199924
and follow instructions, or call +44 (0)20 7162 0177 or +46 (0) 8 505 201 14.
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 November 13 on: +44 (0)20 7031 4064 and +46 (0)8 505 203 33, access code: 849470.
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 8.00 a.m. (CET) on Wednesday, November 11, 2009.