September 2, 2010 / 4:32 PM / 7 years ago

UPDATE 2-Garda World Q2 beats, sees strong 2011; shares jump

* Q2 EPS C$0.17 vs est C$0.16

* Revenue up 3 pct

* Cash logistics unit positioned for steady growth - CEO

* Garda shrs up 9 pct; S&P/TSX composite index up 0.6 pct (Recasts; adds conference call details, share movement)

Sept 2 (Reuters) - Garda World Security Corp GW.TO posted second-quarter results that beat market estimates on contract wins, and said its key cash logistics segment would see steady growth over the next few years, sending its shares up 9 percent.

Garda’s cash logistics segment, which provides armored cars, cash-handling services and automated teller machine maintenance, secured several multi-year contracts worth C$340 million with Canadian and U.S.-based financial institutions in the second quarter.

The segment accounts for half of the company’s total revenue.

“The cash logistics unit is going very, very well and it’s positioned for steady growth over the next (few) years with all these long-term agreements that are signed,” Chief Executive Stephan Cretier said on a conference call with analysts.

“We will be very well positioned for a very strong calendar year 2011.”

The company, which competes with Sweden-based Loomis AB LOOMb.ST, said it expects to win additional business from several financial institutions in the United States in the next 12-18 months.

For the May-July quarter, Garda posted net income of C$5.3 million ($5.1 million), or 17 Canadian cents per basic share, up from C$4 million, or 13 Canadian cents per basic share, last year.

The company, which also has operations in Latin America, Europe and the Middle East, said revenue rose 3 percent to C$280 million.

Revenue at its physical security segment rose 16 percent to C$141 million, boosted by new contracts and enhanced measures at Canadian airports.

Analysts on average had forecast earnings of 16 Canadian cents a share on revenue of C$279.8 million, according to Thomson Reuters I/B/E/S.

The Montreal-based company’s shares, which have lost nearly a third of their value since touching a 52-week high of C$11.90 in March, were up 8 percent at C$8.77 Thursday afternoon on the Toronto Stock Exchange. They touched a high of C$8.85 earlier in the session.

$1=1.050 Canadian Dollar Reporting by Isheeta Sanghi in Bangalore; Editing by Jarshad Kakkrakandy, Anne Pallivathuckal

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