ISS A/S Comments on FY 2013 Financial Guidance

Wednesday, 21 Aug 2013 02:00am EDT 

ISS A/S announced that its outlook for fiscal year 2013 is based on a mixed global macroeconomic outlook with continued strong growth in emerging markets combined with weak growth and difficult macroeconomic conditions in parts of Europe, including the uncertainty surrounding current and future austerity measures. Combined with the underlying business development, the Company expects to realize approximately 3% organic growth in fiscal year 2013. The divestment of the margin accretive pest control activities in 12 developed markets in May 2013 has been followed by restructuring activities to align the cost structures in the impacted countries. The Company expects a negative impact on the operating margin from these divestments of approximately 0.2% for the Group in fiscal year 2013. As a result, the operating margin for fiscal year 2013 is expected to be slightly lower than the level realized in 2012. Cash conversion is expected to be maintained above 90%.