Guarding

Securitas reports

by Mark Rowe

Organic sales growth at the multi-national security contractor Securitas continued to be weak – at zero in the third quarter. The company in its interim report for the nine months to September 2012 put it down to negative organic sales growth in North America and severe market conditions in France, Portugal and Spain.

President and Chief Executive Officer Alf Göransson said: “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 US 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.”

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