Securitas Q2 Net up 6.7 Percent

Swedish security firm Securitas AB on Friday reported a 6.7 percent increase in second-quarter net profits, in part thanks to stronger sales, and said it aims to explore acquisition opportunities in North America as they arise.

The group said net profit in the quarter — excluding discontinued operations — reached 468 million kronor ($65.5 million), up slightly from 439 million kronor a year ago.

Sales in the April to June period jumped 18 percent to 15.4 billion kronor.

Securitas gets the majority of its revenues in U.S. dollars and euros, which have both strengthened against the Swedish krona.

But what the company calls organic sales plunged, falling to a flat zero percent from 6 percent in the same quarter in 2008. Securitas blamed this on the difficult market for security services as the world struggles with the financial crisis.

"The economic environment remains difficult and a large number of our customers are under continuous pressure to reduce cost, including their total spend in security," CEO Alf Goransson said in the earnings statement. "Our strategy is to defend the profitability in our contract portfolio and to support our customers in finding the most cost efficient security solutions."

Goransson also noted that the recession also creates opportunities for potential takeovers in North America. "We intend to selectively exploit them as they occur," he said.

Securitas shares rose 0.4 percent to 66 kronor in Stockholm.

Handelsbanken analyst Lars Hallstrom said the results were more or less in line with expectations, but that stronger margins, particularly in its North American business, "was a bit of a relief."

"The management's margin strategy is paying off," he said.

The company provides security guards, alarm systems and armored guards to banks, retailers, corporations and residential customers. The group employs around 240,000 people in more than 35 countries.