Loomis during the first six months of 2009: Continued improved operating margin
7/31/2009 2:00 AM EST
Loomis reports operating income (EBITA) [1] for the first half of 2009 of MSEK 368 (303), including exchange rate effects of MSEK 67, and an operating margin of 5.9 percent (5.7). Income before tax amounted to MSEK 297 (220) and net income after taxes to MSEK 208 (225). [2]
Revenue increased to MSEK 6,205 (5,316), of which organic growth comprised -2 percent (3).
The cash flow from operating activities of MSEK 288 (-150) amounted to 78 percent of operating income (EBITA). This improvement is, among other things, the result of lower levels of accounts receivable and investments. Profit per share was SEK 2.85 (3.08).[2]
Second quarter
Operating income (EBITA) in the second quarter amounted to MSEK 183 (163) and the operating margin to 6.1 percent (6.1). Income before tax for the second quarter amounted to MSEK 148 (119) and net income after taxes was MSEK 103 (157)[2]. Revenue during the second quarter amounted to MSEK 3,018 (2,669).
During the second quarter, Loomis has executed a strategically significant acquisition on the Slovakian market, which is a new market for the Company, this, via the purchase of Fenix, the country’s third largest cash handling company. Loomis has also, during the second quarter, acquired the assets and customer contracts in the Finnish cash handling provider Ponsec Finland Oy.
In June, Loomis’ Swedish subsidiary received renewed authorization to conduct cash transport operations.
-Our goal to achieve an operating margin of at least 8 percent at latest 2010, remains. In order to achieve this goal, it is necessary to undertake, on an ongoing basis, Group-wide work related to cost reductions and to focus on under-achieving branch offices. We must also be prepared to quickly execute restructurings due to weakening markets and, in certain countries, even diminishing markets, states Loomis’ CEO, Lars Blecko.
1) Income Before Interest, Taxes and Amortization of acquisition-related intangible fixed assets.
2) The previous year’s net income after taxes was positively impacted by the utilization of previously non-valued loss carry forwards in the UK.