November 7, 2019 / 6:15 AM / 9 days ago

BRIEF-SGS Sees Low Single-Digit Organic Growth In H2

Nov 7 (Reuters) - SGS SA:

* WE NOW EXPECT H2 2019 ORGANIC GROWTH TO BE LOW SINGLE-DIGIT

* MANAGEMENT TEAM REMAINS VERY FOCUSED ON EXPECTED IMPROVEMENT IN H2 PROFITABILITY AND WE REITERATE OUR FY 2019 GUIDANCE FOR A HIGHER ADJUSTED OPERATING INCOME MARGIN ON A CONSTANT CURRENCY BASIS

* H2 2019 PROFITABILITY IS SUPPORTED BY EFFICIENCY GAINS, STRONG COST CONTROL AND IS STARTING TO BENEFIT FROM STRUCTURAL OPTIMIZATION PLAN ANNOUNCED AT H1 2019

* EXPECT THAT CHF 75 MILLION INVESTED IN STRUCTURAL OPTIMIZATION MEASURES TO STREAMLINE BUSINESS ACROSS GLOBAL NETWORK SHOULD DELIVER ANNUALIZED SAVINGS OF AT LEAST CHF 90 MILLION

* THIS GIVES US INCREASED CONFIDENCE ON ACHIEVING AN ADJUSTED OPERATING INCOME MARGIN OF ABOVE 17% IN 2020

* GUIDANCE FOR 2019: MODERATE ORGANIC GROWTH

* GUIDANCE FOR 2019: HIGHER ADJUSTED OPERATING INCOME MARGIN ON A CONSTANT CURRENCY BASIS

* CONSIDERING ORGANIC GROWTH IN 2019, WE NOW EXPECT SOLID ORGANIC GROWTH FOR 2020 PLAN

* CONFIDENT FOR ORGANIC GROWTH RATE TO BE AT MID SINGLE-DIGIT IN NEAR TERM Source text for Eikon: Further company coverage: (Berlin Speed Desk)

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