A strong start of the year for ASSA ABLOY
- Sales increased by 24% in the quarter, with 5% organic growth, and totaled SEK 15,252 M (12,305).
- Strong growth in Americas, Global Technologies and Entrance Systems and good growth in EMEA.
- Negative growth in Asia Pacific.
- Two acquisitions made during the quarter, with expected annual sales totaling about SEK 340 M.
- Operating income (EBIT) amounted to SEK 2,329 M (1,857). The operating margin was 15.3% (15.1).
- Net income amounted to SEK 1,616 M (1,264).
- Earnings per share increased by 28% and amounted to SEK 4.36 (3.41).
- Cash flow was normal for the season and amounted to SEK 520 M (557).
SALES AND INCOME
| Full year | First quarter | |||||
| 2013 | 2014 | Change | 2014 | 2015 | Change | |
| Sales, SEK M | 48,481 | 56,843 | +17% | 12,305 | 15,252 | +24% |
| of which, | ||||||
| Organic growth | +3% | +5% | ||||
| Acquisitions | +9% | +3% | ||||
| Exchange-rate effects | -1,156 | +2,138 | +5% | +109 | +1,892 | +16% |
| Operating income (EBIT), SEK M |
7,923 (1) | 9,257 | +17% (1) | 1,857 | 2,329 | +25% |
| Operating margin (EBIT), % | 16.3 (1) | 16.3 | 15.1 | 15.3 | ||
| Income before tax, SEK M | 7,381 (1) | 8,698 | +18% (1) | 1,709 | 2,184 | +28% |
| Net income, SEK M | 5,496 (2) | 6,436 | +17% (2) | 1,264 | 1,616 | +28% |
| Operating cash flow, SEK M | 6,803 | 8,238 | +21% | 557 | 520 | -7% |
| Earnings per share (EPS), SEK |
14.84 (2) | 17.38 | +17% (2) | 3.41 | 4.36 | +28% |
1) Items affecting comparability in 2013 amounting to SEK -1,000 M for the full year have been excluded.
2) Items affecting comparability in 2013 amounting to SEK -721 M after tax for the full year have been excluded.
COMMENTS BY THE PRESIDENT AND CEO
“The first quarter was very positive for ASSA ABLOY, with an increase in sales of 24% and an improvement in operating income of a full 25%,” says Johan Molin, President and CEO. “It was pleasing to see that growth in North and South America, and in the Emerging Markets apart from China, continued at a high level.
“Organic growth during the quarter was 5%, driven by a very strong performance in the USA. The Americas, Global Technologies and Entrance Systems divisions all showed strong growth, while EMEA maintained its stable but relatively low growth of 2%. All regions in Asia Pacific produced strong growth except China. The weak market in China, in combination with our introduction of a strict credit policy, meant that sales there fell back significantly.
“New products, and especially electromechanical products, make up a steadily increasing share of our sales. This is an exciting trend, with more and more customers choosing solutions that link their locks to the Internet. Over a short period ASSA ABLOY has developed a leading position in digital door locks and access control with great potential for the future in both the residential and the commercial segments.
“During the quarter the strategic acquisition of Quantum Secure was carried out. Quantum Secure gives ASSA ABLOY the ability to offer its customers a total solution for managing identity and access in security-intensive environments such as airports and other public places. The Chilean company ODIS was also acquired. The acquisitions represent 0.6% in added sales.
“Operating income continued to strengthen in a very satisfactory manner this quarter, with a rise of a full 25%. The main contributory factors were our organic growth, good improvements in efficiency and positive exchangerate effects.
“My judgment is that the global economic trend remains weak. Although America is showing a positive trend, Europe and many of the Emerging Markets are stagnating. However, our strategy of expanding on the Emerging Markets remains unchanged, since in the long term they are expected to achieve very good economic growth. We are also continuing our investments in new products, especially in the growth area of electromechanics.”
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 28 April.
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