Securitas AB Interim Report January - September 2005

Interim Report
January - September 2005

Continued strong development in the USA and full year forecast maintained

• Sales in the third quarter increased by 5 percent to MSEK 16,874 (15,182), adjusted for changes in exchange rates, acquisitions and divestitures. In the first nine months of the year sales increased by 4 percent to MSEK 48,303 (44,465), adjusted for changes in exchange rates, acquisitions and divestitures.

• Operating income in the third quarter increased by 3 percent to MSEK 1,134 (1,071), adjusted for changes in exchange rates. Operating margin was 6.7 percent (7.1). In the first nine months of the year operating income increased by 6 percent to MSEK 3,104 (2,911), adjusted for changes in exchange rates. Operating margin was 6.4 percent (6.5).

• Income before taxes in the third quarter increased by 4 percent (4 percent adjusted for IAS 39 revaluations and restructuring costs) to MSEK 978 (911), adjusted for changes in exchange rates. In the first nine months of the year income before taxes increased by 7 percent (7 percent adjusted for IAS 39 revaluations and restructuring costs) to MSEK 2,642 (2,439), adjusted for changes in exchange rates.

• Net income in the third quarter increased by 7 percent to MSEK 725 (677). In the first nine months of the year the increase was 7 percent to MSEK 1,958 (1,831).

• Earnings per share after taxes increased by 8 percent to SEK 1.95 (1.81) in the third quarter. In the first nine months of the year the increase was 7 percent to SEK 5.27 (4.92).

• Free cash flow in the third quarter amounted to MSEK 773 (512) representing 97 percent (72) of adjusted income. In the first nine months of the year free cash flow amounted to MSEK 1,312 (1,512) representing 63 (77) percent of adjusted income.

Comments from the CEO, Thomas Berglund

"Most important in the third quarter is the continuous improvement in Security Services USA with 6 percent organic sales growth and an operating margin improvement with half a percentage point from the low point in the fourth quarter 2004. Security Services USA is now a stable operation with strong momentum for continued development of organic sales growth and margins.

Security Services Europe is since many years delivering good organic sales growth and has reached close to 8 percent operating margin through continuous refinement. Security Services Europe is now preparing for the next step, where further specialization and focus on specific customer segments will continue to drive organic sales growth and margin improvements.

With strong development also in Securitas Systems and Direct and with positive, even though somewhat slow, development in Cash Handling Services, Securitas is prepared for the continued journey.

Continued strong performance in Security Services USA and expected improvements in Security Services Europe will give a strong fourth quarter and a maintained full year forecast 2005. The organic sales growth for the full year 2005 is expected to be in line with the first nine months of 2005 and 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