Loomis during 2009: Improved result and operating margin

Strong cash flow

Loomis’ operating income (EBITA)[1] for 2009 amounted to MSEK 837 (748) including exchange rate effects of MSEK 74. This is equivalent to an improvement of MSEK 89 compared with 2008. The operating margin increased to 7.0 percent (6.6) percent. Operating income for the fourth quarter amounted to MSEK 237 (239), with an operating margin equivalent to 8.2 (7.7) percent, which is somewhat higher than the Group’s goal of 8 percent for the entire year 2010. Revenues increased during 2009 to MSEK 11,989 (11,258). Organic growth was –3 (3) percent, of which lower fuel surcharges accounted for –1 percent. Revenue in the fourth quarter amounted to MSEK 2,880 (3,107) and organic growth was –3 (2) percent, of which lower fuel surcharges accounted for -1 percent. Income before taxes for the full year 2009 amounted to MSEK 706 (569) and net income after tax was MSEK 500 (424) [2]. The equivalent figures for the fourth quarter are MSEK 206 (192) and MSEK 150 (115), respectively. Cash flow from operating activities amounted to MSEK 789 (442) in 2009, which is equivalent to 94 percent of operating income (EBITA). The equivalent figure for the fourth quarter was MSEK 286 (222) and 121 percent, respectively. Earnings per share for the full year 2009 were SEK 6.85 (5.80)[2]. For the fourth quarter, earnings per share were SEK 2.06 (1,57)[2]. - 2009 was a positive year for Loomis with improved result and a very strong cash flow, in spite of the economic recession and a weak market. The primary reason for this is that we have decreased costs and increased efficiency in the entire Group, not the least via a focus on profitability at each and every one of our 370 local branch offices. This, in combination with other changes which we have implemented, implies that we feel comfortable about our full year forecast for 2010, with a predicted operating margin of 8 percent, states Loomis President, Lars Blecko. [1] Earnings Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets. [2] Net income after taxes in the previous year was affected by the utilization of previously unrecognized loss carry forwards in the UK.