Securitas AB Interim Report January - March 2005

Security Services USA at turning point and continued
improvement in all other divisions.

• Sales in the first quarter increased by 4 percent to MSEK 15,195 (14,453), adjusted for changes in exchange rates, acquisitions and divestitures.

• Operating income in the first quarter increased by 8 percent to MSEK 937 (885), adjusted for changes in exchange rates. Operating margin was 6.2 percent (6.1).

• Income before taxes in the first quarter increased by 16 percent to MSEK 818 (724), adjusted for changes in exchange rates.

• Net income in the first quarter increased by 10 percent to MSEK 606 (551).

• Earnings per share after full taxes increased 9 percent to SEK 1.63 (1.49) in the first quarter.

• Free cash flow in the first quarter increased to MSEK 266 (13) representing 43 percent (2) of adjusted income.


Comments from the CEO, Thomas Berglund

"The organic sales growth has increased from 2 to 4 percent and is driven by better performance in all divisions. Like for like, organic sales growth would have been 5 percent (2004 was a leap year with one more day and Easter this year fell in the first quarter but in the second quarter in 2004). The U.S. guarding business, which has had negative sales development during the integration of all acquired units, is now stable and in normal operations, leaving the negatives behind.

The operating margin has increased from 6.1 to 6.2 percent. Like for like, the margin improvement would have been 0.3 percentage points. The operating margin in the U.S. guarding operations has bottomed out at 4.5 percent and is now expected to start to recover during the rest of the year.

For the full year 2005, all divisions are expected to improve their performance as a result of stronger customer focus, refined service offerings and developed organizations. The organic sales growth is expected to further improve and income before tax, adjusted for changes in exchange rates, 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.