Securitas' Q3 Profits Fall after Spinning off Units
Swedish security provider Securitas AB said Thursday its third-quarter net profit declined 31 percent because of the spin-off of two units and weaker margins at its cash-handling business, Loomis.
In the three months that ended Sept. 30, net profit attributable to shareholders fell to 502 million kronor ($70.9 million), or 1.35 kronor ($0.19) per share, from 724 million kronor, or 1.96 kronor per share, a year earlier.
The results were weighed down by charges of 158 million kronor ($22.3 million) for the initial public offerings of its two units Securitas Systems and Securitas Direct, which were listed earlier this year.
Sales of the continuing operations - services and cash handling - rose 3.8 percent to 15.08 billion kronor ($2.13 billion).
Securitas has previously said it will also list cash handling unit Loomis next year, to focus only on its core security services business.
"With the change in management and the renewed focus on the business, we are on the right track in Cash Handling Services, but the result will not improve until 2007," Securitas outgoing Chief Executive Thomas Berglund said in a statement.
Berglund, who has led the company for 14 years, announced in August that he will step down from the post in April 2007.
Scania shares fell 1.7 percent to 97.75 kronor ($13.80) on the Stockholm exchange.
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