Net financial impacts from the Cardo deal and accelerated program for efficiency improvements
The divestments of Cardo Flow Solutions and Lorentzen & Wettre will soon be successfully finalized. The net gain on the sale is estimated to amount to SEK 430 M.
The acquisition and integration of Crawford (the part of Cardo which is being consolidated into ASSA ABLOY) is performing better than expected and the company shows both growth and good profitability. Positive is also that identified synergies will exceed previous estimates. The cost for implementing the efficiency programs will therefore be somewhat higher than previously communicated and amount to approximately SEK 380 M.
In addition, a new analysis of the production structure in the rest of the ASSA ABLOY-Group has been initiated and further potential for efficiency improvements has been identified. The current uncertain economic outlook also makes it even more important to accelerate the efficiency programs on the mature markets. The cost for the implementation is estimated to SEK 950 M.
Initial estimates for the total Group show a need for closing or reshaping 17 production units and 2 administrative units. The total cost for the implementation for both Crawford and the rest of the production structure is thereby estimated to SEK 1 330 M.
All one off income and costs are planned to be charged in full to the income statement during 2011. The net pre tax effect is expected to be SEK 900 M.
Further information can be obtained from:
Johan Molin, President and CEO, Tel: +46 8 506 485 42
Tomas Eliasson, Chief Financial Officer, Tel: +46 8 506 485 72
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 08.00 am CET on September 22.