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Secom seen posting fifth straight record profit

Japanese security giant boosting value-added contracts

TOKYO -- Secom will likely report a group operating profit of some 130 billion yen ($1.15 billion) for the year ended March 31, a fifth consecutive record for Japan's largest security services provider.

The gain of around 1% would roughly meet the company's projection but undershoot the 133.1 billion yen QUICK Consensus average of analysts' forecasts.

Revenue apparently climbed 5% to 925 billion yen. Secom is seen adding about 5% more contracts for businesses and households. Security operations, accounting for nearly 60% of revenue, likely enjoyed growth in high-value-added services.

Corporate security bundles that manage employee entry, exit and attendance via smart card are seen as a strong seller. For homes, 24-hour crime- and disaster-monitoring systems apparently drew customers. Contracts likely surged to nearly 3.05 million overall.

Secom also likely rung up brisk sales of condominiums fully equipped with advanced security features.

But in the disaster prevention business, sales of fire protection equipment for tunnels seem to have foundered amid delays in installation work. This was the major reason consolidated revenue likely missed the company's 933.9 billion yen forecast. But Secom's highly profitable data center business apparently landed large-lot contracts, lifting operating profit to around the projection.

In the current year ending March 2018, revenue and profit are expected to grow as efforts to cultivate customers lead to new contracts. Fiscal 2016 earnings come out May 11.

(Nikkei)

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