* Q4 operating profit SEK 1.3 bln vs forecast 1.52 bln
* Organic sales growth slowed, oeprating margin narrowed
* Dip in N. America infrastructure services weighs
* Shares fall 7%
* CEO: NA unit's revenue dip affects also Q1
*
(Adds CEO comment, detail, background, updates shares)
By Anna Ringstrom
STOCKHOLM, Feb 6 (Reuters) - Securitas, the
world's biggest security services group, on Thursday reported a
smaller than expected rise in fourth-quarter operating profit
and a slowdown in organic sales growth, sending its shares down
more than 7%.
The rival of Britain's G4S said in a statement that
the weaker sales momentum in North America was partly due to a
short-term decline in sales of critical infrastructure services,
which had also weighed on profitability in the quarter.
This business provides specialised security services to
public and private customers within aerospace, defence and
energy industries.
Chief Executive Magnus Ahlqvist said: "Organic sales growth
declined temporarily in North America and was also hampered by
the previously communicated contract losses in Europe."
Ahlqvist told Reuters the effect was continuing into the
current quarter. "I would say that it is ceasing in the near
future. I can't specify weeks and months," he said.
Shares in Securitas, which also provides security guard
services, alarm surveillance and airport security, fell 7% at
1415 GMT to four-month lows and erasing gains made in the past
year.
He stood by an outlook given in November for 2-3% market
growth in Europe this year, and around 4% market growth in North
America. He predicted it would come on the back of price
increases rather than volume growth.
The CEO said a key focus for 2020 was to try to fully pass
on wage cost increases to customers this year, after the company
did not entirely manage to do so in 2019.
Group operating profit was 1.3 billion crowns ($138 million)
against a year-ago 1.14 billion. Analysts had on average
forecast a 1.52 billion crown profit, according data from
Refinitiv.
Operating profit before amortisation was 1.50 billion crowns
against a year-ago 1.48 billion. Organic sales growth, which
strips out the impact of acquisitions and divestments, slowed to
2% from 4% in the previous quarter and 5% in the same period a
year ago.
Wages account for the bulk of costs at the company, which
employs around 370,000 people around the world, and there is
currently upward pressure on wages in many countries.
($1 = 9.5866 Swedish crowns)
(Reporting by Anna Ringstrom; editing by Niklas Pollard and
Jane Merriman)
