Sweden's Securitas Q3 profit down 19 pct

STOCKHOLM - Swedish security firm Securitas AB on Wednesday posted a 19 percent drop in third-quarter net profit mainly because last year's earnings were boosted by the cash handling unit Loomis which has since been spun off and listed.

Net profit for the July to September period came to 528 million kronor ($77 million), down from 653 million kronor in the same quarter in 2008. Its discontinued operations, Loomis, contributed some 136 million kronor to net income a year ago.

Revenue in the three-month period rose, however, to about 15.1 billion kronor from 14.3 billion kronor. That increase was helped by shifts in exchange rates, particularly the dollar and euro, in which Securitas gets the majority of its revenue.

Still, the group's organic sales — which are adjusted for acquisitions and divestments — fell by 2 percent, compared with growth of 6 percent a year earlier. Securitas CEO Alf Goransson said the drop was "in line with the security market development," but underscored that the economic environment is tough, pushing many clients to lower their costs.

His company is focused on defending profitability by increasing efficiency, he said, reiterating that the global financial downturn will also present the group with acquisition opportunities. "We intend to exploit them as they occur," he said.

Shares in the firm dropped 2.4 percent to 67.95 kronor ($9.92) on the Stockholm stock exchange.

The company, which is headquartered in Stockholm, provides security guards, alarm systems and armored guards to banks, retailers, corporations and residential customers. The group employs around 240,000 people and has operations in more than 40 countries.

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