STOCKHOLM (Dow Jones)--Swedish security company Securitas AB (SECU-B.SK) expects a gradual improvement in the profitability of its European airport security services business this year, chief executive officer Thomas Berglund said Thursday.
"The first quarter won't be much stronger than what we see now, but gradually over the year we will see stronger and stronger quarters," Berglund said.
Securitas last year lost contracts with some airports due to insurance disputes over third-party liability in the event of terrorist attacks. The renegotiating of some airport contracts at lower margins and costs for the startup of new contracts also pressured margins in the first three quarters of 2005.
"The problems are behind us now," Berglund said. The company expects "substantial organic growth coming in the aviation business," he added.