Strong increase in sales and earnings
- Sales for the quarter increased by 14%, with 2% organic growth, and totaled SEK 13,964 M (12,239).
- Strong growth in Asia Pacific and good growth in EMEA, Entrance Systems and Americas.
- Negative growth in Global Technologies because of lower project orders.
- Operating income (EBIT) for the quarter rose by 13% and totaled SEK 2,219 M (1,970). The operating margin was 15.9% (16.1).
- Net income for the quarter amounted to SEK 1,534 M (1,374).
- Earnings per share for the quarter rose by 12% to SEK 4.14 (3.71).
- Cash flow for the quarter increased by 24% and amounted to SEK 1,963 M (1,589).
| Second quarter | First half-year | ||||||
| 2013 |
2014 | Change | 2013 | 2014 | Change | ||
| Sales, SEK M |
12,239 | 13,964 | +14% | 23,108 | 26,268 | +14% | |
| of which, | |||||||
| Organic growth | +2% | +3% | |||||
| Acquisitions | +10% | +9% | |||||
| Exchange-rate effects | -509 | +210 | +2% | -888 | +319 | +2% | |
| Operating income (EBIT), SEK M |
1,970 | 2,219 | +13% | 3,632 | 4,076 | +12% | |
| Operating margin (EBIT), % | 16.1 | 15.9 | 15.7 | 15.5 | |||
| Income before tax, SEK M | 1,832 | 2,073 | +13% | 3,365 | 3,782 | +12% | |
| Net income, SEK M | 1,374 | 1,534 | +12% | 2,512 | 2,798 | +11% | |
| Operating cash flow, SEK M | 1,589 | 1,963 | +24% | 2,087 | 2,520 | +21% | |
| Earnings per share (EPS), SEK | 3.71 | 4.14 | +12% | 6.78 | 7.56 | +12% | |
COMMENTS BY THE PRESIDENT AND CEO
“The second quarter and the first six months of the year continued to show a very good performance for ASSA ABLOY, with a total increase in sales of 14% and a very satisfying improvement of a full 12% in operating income,” says Johan Molin, President and CEO.
“At 2%, organic growth during the second quarter was a little lower than in the beginning of the year. However, the quarter had one fewer working day than the previous year as well as weaker project sales for Global Technologies. The EMEA, Americas and Entrance Systems divisions grew by a satisfactory 3%, while the emerging markets, for example in Asia, Africa and South America, continued to grow strongly.
“Acquisition activity continued to run at a high level, with six new acquisitions which add
a further SEK 700 M to annual sales. It was especially pleasing that we were successful in acquiring the Indian company ENOX. This is our first major step in meeting the Group’s ambition to build a market-leading position on the fast-growing Indian market.
“Operating income continued to improve, by a full 13% during the quarter. As well as valuable savings and efficiency gains from the restructuring programs, the acquired companies also contributed strongly to the improvement in income. Ameristar in particular has produced very good results, but Amarr and 4Front also contributed significantly.
“Continued strong growth came from our many new products. Sales of electromechanical lock solutions increased by over 10% in both Americas and EMEA. Home automation is another exciting development area where many leading companies have chosen ASSA ABLOY’s advanced digital door locks.
“My judgment of the global economic trend is unchanged. The world economy is about to improve slowly. Our strategy therefore remains unchanged, to reduce our dependence on mature markets and to expand strongly in the emerging markets, which are expected to go on growing well. Another continuing priority is investments in new products, especially in the growth area of electromechanics.”
FINANCIAL INFORMATION
The Interim Report for the third quarter will be published on 23 October 2014.
A Capital Market Day will be held on 18 November 2014 in New Haven, USA at the
Head Office of Americas division.
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 11.00 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 18 July.
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