Securitas AB Interim Report January - June 2005

The turnaround in Security Services USA is confirmed and Group full year forecast remains unchanged.

• Sales in the second quarter increased by 5 percent to MSEK 16,234 (14,830), adjusted for changes in exchange rates, acquisitions and divestitures. In the first half of the year sales increased by 4 percent to MSEK 31,429 (29,283), adjusted for changes in exchange rates, acquisitions and divestitures.

• Operating income in the second quarter increased by 7 percent to MSEK 1,032 (955), adjusted for changes in exchange rates. Operating margin was 6.4 percent (6.4). In the first half of the year operating income increased by 8 percent to MSEK 1,969 (1,840), adjusted for changes in exchange rates. Operating margin was 6.3 percent (6.3).

• Income before taxes in the second quarter increased by 4 percent (7 percent adjusted for IAS 39 revaluations and restructuring costs) to MSEK 847 (804), adjusted for changes in exchange rates. In the first half of the year income before taxes increased by 9 percent (9 percent adjusted for IAS 39 revaluations and restructuring costs) to MSEK 1,664 (1,527), adjusted for changes in exchange rates.

• Net income in the second quarter increased by 4 percent to MSEK 628 (604). In the first half of the year the increase was 7 percent to MSEK 1,233 (1,154).

• Earnings per share after full taxes increased by 4 percent to SEK 1.69 (1.62) in the second quarter. In the first half of the year the increase was 7 percent to SEK 3.32 (3.11).

• Free cash flow in the second quarter amounted to MSEK 274 (987) representing 40 percent (150) of adjusted income. In the first half of the year free cash flow amounted to MSEK 540 (1,000) representing 42 (80) percent of adjusted income. The decrease in free cash flow is caused by the increase in organic sales growth, timing differences in payments of social security charges in some European countries and a temporary inventory build up in the Security Systems and Direct divisions.


Comments from the CEO, Thomas Berglund

"The turnaround in Security Services USA is now confirmed with a 3 percent organic sales growth in the second quarter, up from 0 percent in the first quarter and the operating margin at 4.7 percent, picking up from the low point at 4.5 percent in the fourth quarter 2004.

The U.S. development along with maintained or improved organic sales growth in the other divisions have increased the Group's organic sales growth.

The Group's operating margin is temporarily unchanged compared to the same period last year, but is for the full year 2005 expected to exceed last years performance through improvements mainly in Security Services USA and Cash Handling Services.

The forecast for the full year 2005 remains unchanged. Income before tax, adjusted for changes in exchange rates and including revaluation of financial instruments and restructuring costs is expected to increase in the range of 10 to 15 percent compared to 2004."


The full report including tables can be downloaded from the following link.