Securitas Systems Q1 pretax beats forecasts on strong sales growth |
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Tue, 08 May 2007 08:49
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STOCKHOLM (Thomson Financial) - Securitas Systems AB said its first-quarter pretax profit amounted to 122 mln skr, up 45 pct from a pro forma figure of 84 mln a year earlier, as strong organic sales growth offset weaker margins in the US, UK and Ireland.The result was above analysts' forecasts of 110 mln skr, as recorded by SME Direkt.The operating margin before amortization fell to 7.3 pct from 8.1 pct.Sales increased 12 pct to 1.653 bln skr. Organic sales growth was 13 pct.In mainland Europe, the company's organic sales growth amounted to 12 pct, with the operating margin before amortization little changed at 11.8 pct.In the US, UK and Ireland business area, organic sales growth amounted to 18 pct. However the operating margin fell to -0.5 pct from 4.2 pct.'The effects on earnings of Systems' increase of the sales organization and strengthening of the service offering are taking longer than previously estimated, which has resulted in weaker development in the US, UK, and Ireland. This may affect the operating margin negatively in 2007,' the company said.Measures to improve profitability in these areas are under way, it said.The company said it expects its organic sales growth in 2007 to be in line with 2006, and its growth through acquisitions to be higher than in 2006.The company reiterated its financial goals for average yearly sales growth of over 10 pct, including acquisitions, and an average yearly return on capital employed exceeding 20 pct.Securitas Systems was spun off from Securitas AB last September.simon.richardson@thomson.comsjr/icCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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