Continued strong development by ASSA ABLOY
- Sales increased by 21%, with 4% organic growth, and totaled SEK 14,727 M (12,131).
- Strong growth in Americas and Entrance Systemsand good growth in EMEA and Asia Pacific.
- Stable growth in Global Technologies.
- Operating income (EBIT) rose by 20% and totaled SEK 2,499 M (2,090). The operating margin was 17.0% (17.2).
- Net income amounted to SEK 1,749 M (1,474).
- Earnings per share rose by 19% to SEK 4.72 (3.98).
- Operating cash flow amounted to SEK 2,249 M (2,175).
- A contract has been signed for the acquisition of Jiawei (China), which has expected sales in 2015 of about SEK 500 M. In October ENOX (India) and Turvaykköset (Finland) were acquired.
SALES AND INCOME
| Third quarter | Jan-Sep | |||||||
| 2013 | 2014 | Change | 2013 | 2014 | Change | |||
| Sales, SEK M | 12,131 | 14,727 | +21% | 35,239 | 40,996 | +16% | ||
| of which, | ||||||||
| Organic growth | +4% | +3% | ||||||
| Acquisitions | +11% | +10% | ||||||
| Exchange-rate effects | +690 | +6% | +1,009 | +3% | ||||
| Operating income, SEK M | 2,090 | 2,499 | +20% | 5,722 | 6,575 | +15% | ||
| Operating margin, % | 17.2 | 17.0 | 16.2 | 16.0 | ||||
| Income before tax, SEK M | 1,966 | 2,364 | +20% | 5,331 | 6,145 | +15% | ||
| Net income, SEK M | 1,474 | 1,749 | +19% | 3,986 | 4,548 | +14% | ||
| Operating cash flow, SEK M | 2,175 | 2,249 | +3% | 4,262 | 4,769 | +12% | ||
| Earnings per share (EPS), SEK | 3.98 | 4.72 | +19% | 10.76 | 12.28 | +14% | ||
COMMENTS BY THE PRESIDENT AND CEO
“The third quarter and the first nine months of the year continued to show a very good development for ASSA ABLOY. The first nine months sales increased a full 16% and a very satisfying improvement of 15% in operating income,” says Johan Molin, President and CEO.
“In the third quarter organic growth returned to 4%, driven by a globally stable demand situation. The Americas and Entrance Systems divisions showed strong growth, driven by an improved demand situation in the USA, while EMEA and Asia Pacific showed good growth. Global Technologies had a stable development. The weakening of demand on the emerging markets in Asia, Africa and South America continued during the quarter. In spite of this, ASSA ABLOY showed continued good growth as a result of constant investments in increased market presence.
“During the quarter a further three acquisitions were made which add SEK 700 M in annual sales. The expansion of our presence in China continued with the strategic acquisition of Jiawei. Jiawei complements in a significant way our presence in the important lock segment in China.
“Operating income continued to improve, by a strong 20% for the quarter. In the quarter we achieved good savings and efficiency improvements, a strong profit contribution from the acquired companies and exchange-rate gains.
“Sales of new products continued to improve and reached a level of 29% of sales in the quarter. Especially pleasing was that electromechanical locks for the commercial sector and digital door-locks for the residential sector increased strongly.
“My judgment is that the global economic trend is moving sideways, with America showing a positive trend while Europe and the emerging markets are stable on a low level. Our strategy of expansion on the emerging markets remains unchanged, since in the long term they are expected to show very good economic growth. We are also continuing our investments in new products, especially in the growth area of electromechanics.”
FINANCIAL INFORMATION
The End-of-Year Report and Quarterly Report for the fourth quarter will be published on 5 February 2015.
FURTHER INFORMATION CAN BE OBTAINED FROM:
Johan Molin, President and CEO, Tel: +46 8 506 485 42
Carolina Dybeck Happe, Chief Financial Officer, Tel: +46 8 506 485 72
ASSA ABLOY is holding an analysts’ meeting at 10.00 today at Operaterrassen in Stockholm.
The analysts’ meeting can also be followed on the Internet at www.assaabloy.com.
It is possible to submit questions by telephone on +46 8 5055 6476, +44 203 364 5371 or +1 877 679 2993.
This information is that which ASSA ABLOY is required to disclose under the Swedish Securities Exchange and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act.
The information is released for publication at 08.00 on 23 October.
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