Interim Report Jan-Sep 2004.pdf - Securitas

Security Services USA
Q3 Q3 9M 9M
MSEK 2004 2003 2004 2003
Total sales 4,839 5,306 14,412 15,883
Organic sales growth, % -2 -10 -2 -11
Operating income 244 305 727 882
Operating margin, % 5.0 5.7 5.0 5.6
Op. cap employed as % of sales¹ - - 5 6
Capital employed ¹ - - 7,082 8,068
ROCE, % - - 14 16
¹ Calculated after the reversal of the sale of account recevables of MSEK 1,655 (1,724)
❑ Increases in SUI and Medical costs not compensated by
price and efficiency - especially some large clients
❑ Revenue per day is nearly back to the beginning of the
year and increasing - but gross margin continues to be
under pressure
❑ Organization up to speed - better performance for
coming quarters expected
Interim Report January - September 2004 7
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Total sales &
operating margin
9M-00 9M-01 9M-02 9M-03 9M-04
8%
6%
4%
2%
0%
Total sales, MSEK Op.Margin, %
Key Drivers: (annualized)
❑ Contract portfolio growth 0 %
❑ Wages and prices up 1,5 %
❑ Client retention 89 % (88)
❑ Employee turnover 60 % (65)