Here is what Alf Göransson, Securitas President and Chief Executive Officer has to say ahead of the ?Securitas interim report for January to June 2010:
With the uneven recovery taking place in the world economies, demand for security services has not yet increased due to the sectors late cyclicality. It has, however, stabilized at the current levels. The recovery seems to be steady in North America, while security industry development in Europe varies from country to country and remains difficult to predict.
The Securitas strategy — to focus on profitability and to differentiate the company from its competitors through the added value in optimizing security solutions for customers — has been successful in various business cycles over the past few years. In the first half of 2010 the real improvement in operating income continued amounting to 4 percent. The operating margin improved in all business segments.
Although Security Services North Americas organic sales growth remained negative in the first half of the year, it is showing signs of improving. Security Services Europe as well as Mobile and Monitoring enjoyed positive organic sales growth.
During the second quarter a major acquisition was concluded in the U.S. in order to expand in the primary government security services market. Favorable acquisition opportunities continue to present themselves in both mature and new markets and we intend to remain active and selectively take advantage of such opportunities as they arise.
– Total sales MSEK 30,295 (32,332)
– Organic sales growth –1 percent (0)
– Operating margin 5.5 percent (5.4)
– Earnings per share SEK 2.53 (2.68)
– Free cash flow/net debt 0.24 (0.18)
APRIL–JUNE 2010
– Total sales MSEK 15,424 (15,907)
– Organic sales growth 0 percent (0)
– Operating margin 5.6 percent (5.5)
– Earnings per share SEK 1.29 (1.28).
