Securitas Systems Q3 profit rises on acquisitions but misses consensus UPDATE

(updating with full-year outlook, profit problems at US/UK/Ireland ops) STOCKHOLM (Thomson Financial) - Securitas Systems AB said its third-quarter pretax profit rose 16 pct from a year earlier to 111 mln skr due to acquisitions and double-digit organic sales growth. The result was below average market expectations of 130 mln skr, as recorded by SME Direkt.

Sales increased 13 pct to 1.702 bln skr. Organic sales growth was 12 pct. It said third-quarter sales were negatively impacted by 19.2 mln skr due to adverse currency effects.

"We see continued good sales growth and stable margins in our largest segment, mainland Europe. The acquisitions of Larmassistans Teknik and CIS SpA are contributing positively to operating profit," said the company. The company said it expects full-year organic sales growth this year to be "somewhat better than 2006", and at the same time it anticipates acquisition growth will be "higher than in 2006". However, the company said measures taken to increase profitability at its operations in the US, UK and Ireland are taking longer than expected. "Operating profit in the segment US/UK/Ireland is, therefore, expected to be lower for the full year 2007 than for 2006," the company said. The company reiterated its financial goals for an average yearly sales growth of over 10 pct, including acquisitions, and an average yearly return-on-capital-employed that exceeds 20 pct. sjr/slj/sjr/slj COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved.

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