Securitas Posts Better Than Expected 4Q Results

Securitas AB, reported that its fourth quarter net profit of 634.4 million Swedish kronor ($76.7 million), up from 433.9 million kronor in the same period in 2013.

The world’s second largest security company, Securitas AB, reported that its fourth quarter net profit exceeded expectations, after the firm rose to 634.4 million Swedish kronor ($76.7 million) in the three months ended Dec. 31, up from 433.9 million kronor in the same period in 2013.

Analysts predicted the firm to make a net profit of 567.25 million kronor for the quarter.

Securitas, which provides security services like guarding and technology solutions, is aiming to increase security solutions and technology sales to a run rate of 18% by the end of 2015, up from 6% in 2012 and 10% in the fourth quarter of 2014, Wall Street Journal reports.

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However, the firm believes it may not reach its sales target growth, in part to the Affordable Care Act, coupled with increased growth of guarding contracts.

The company said it is compliant with the Affordable Care Act and does not expect any negative impact on its results as it has fully mitigated the cost, according to Wall Street Journal.

Sales in the quarter rose to 18.9 billion kronor, up from 16.73 billion kronor in the year-earlier period. Operating profit increased to 943.7 million kronor, from 791 million kronor a year ago.

Security solutions and technology sales amounted to 6.5 billion kronor in 2014 and grew with 28% compared to 2013 and that it expects this business area to deliver sales in at least the same range in 2015.

Organic sales growth was 5% in the quarter, up from 1% a year ago, and the improvement was reflected in all business segments, Wall Street Journal reports.

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