Another strong quarter for ASSA ABLOY
- Sales increased by 19% and totaled SEK 17,465 M (14,727). Organic growth was 3% (4).
- Strong growth in Americas, Entrance Systems and EMEA and a flat development in Global Technologies.
- Negative growth in Asia Pacific due to weak demand in China.
- Nergeco in France and two other small businesses were acquired during the quarter, with expected annual sales in 2015 of about SEK 400 M.
- Operating income (EBIT) for the quarter increased by 19% to SEK 2,970 M (2,499). The operating margin was 17.0% (17.0).
- Net income for the quarter amounted to SEK 2,069 M (1,749).
- Earnings per share for the quarter rose by 18% and amounted to SEK 1.86 (1.57).
- Operating cash flow for the quarter was SEK 2,816 M (2,249).
SALES AND INCOME
| Third quarter | Jan-Sep | |||||
| 2014 | 2015 | Change | 2014 | 2015 | Change | |
| Sales, SEK M | 14,727 | 17,465 | +19% | 40,996 | 49,799 | +21% |
| of which, | ||||||
| Organic growth | +3% | +4% | ||||
| Acquisitions | +4% | +3% | ||||
| Exchange-rate effects | +1,661 | +12% | +5,561 | +14% | ||
| Operating income (EBIT), SEK M | 2,499 | 2,970 | +19% | 6,575 | 8,041 | +22% |
| Operating margin (EBIT), % | 17.0 | 17.0 | 16.0 | 16.1 | ||
| Income before tax, SEK M | 2,364 | 2,796 | +18% | 6,145 | 7,531 | +23% |
| Net income, SEK M | 1,749 | 2,069 | +18% | 4,548 | 5,573 | +23% |
| Operating cash flow, SEK M | 2,249 | 2,816 | +25% | 4,769 | 5,327 | +12% |
| Earnings per share (EPS), SEK[1] | 1.57 | 1.86 | +18% | 4.09 | 5.02 | +23% |
[1] Earnings per share has been recalculated for all historical periods as a result of the stock split (3:1) decided on in May 2015.
COMMENTS BY THE PRESIDENT AND CEO
“The third quarter and the first nine months continued very strongly for ASSA ABLOY, with a rise in sales of 19% for the quarter and totaling 21% for the first nine months of the year,” says Johan Molin, President and CEO. “Operating income grew very satisfactorily by a full 19% for the quarter and a total of 22% for the 9-month period.
“Organic growth for the quarter was 3%, with the mature markets in the USA, the Pacific and Europe continuing their strong growth. However, Global Technologies showed a weak development during the quarter because of delayed projects on the Government ID side and in Biometry. In Asia, the market downturn in China continued at the same time as other markets in the region showed strong growth.
“ASSA ABLOY’s leadership in the field of innovation was recognized once again at ASIS,
the USA’s largest security exhibition, where four first prizes were won for innovation. The areas where ASSA ABLOY has been particularly successful include physical access and identity; energy-efficient locks; electromechanical locks; and on-line connected digital door locks for the private residential market. All these areas have great potential for the future, with energy-efficient solutions advancing especially strongly.
“Nergeco, which is the market leader in high-speed doors in the French market and with a strong position in southern Europe in general, was acquired during the quarter. Some further minor acquisitions were made during the quarter. One company acquired was Pickersgill Kaye in the UK, which complements the Group in the high-security lock segment.
“Operating income rose by a full 19% during the quarter. The organic growth of 3% resulted in a good underlying growth in the operating margin, to which continued efficiency improvements contributed especially strongly. However, the margin was unchanged this quarter, being affected by negative exchange-rate effects as well as the normal dilution due to acquisitions.
“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.
ASSA ABLOY discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 8.00 CET on October 20.
Tags: