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ASSA ABLOY: A Good Start to the Year

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ASSA ABLOY: A Good Start to the Year

PR Newswire

STOCKHOLM, April 26, 2018 /PRNewswire/ -- First quarter

  • Net sales increased by 2% to SEK 18,550 M (18,142), with organic growth of 4% (6) and acquired net growth of 2% (3)
  • Strong growth was shown by Global Technologies and Entrance Systems and good growth by Asia Pacific, EMEA and Americas
  • Operating income (EBIT) increased by 2% and amounted to SEK 2,829 M (2,787), corresponding to an operating margin of 15.3% (15.4)
  • Net income amounted to SEK 1,964 M (1,918)
  • Earnings per share amounted to SEK 1.77 (1.73)
  • Operating cash flow amounted to SEK 575 M (824).

Sales and income


Full year


First quarter



2016

2017

 Δ

2017

2018

Δ

Sales, SEK M

71,293

76,137

7%

18,142

18,550

2%

Of which:    







Organic growth

1,428

2,834

4%

1,022

705

4%

Acquisitions and divestments

1,967

1,753

2%

448

268

2%

Exchange-rate effects

–201

257

1%

780

–565

-4%

Operating income[1] (EBIT), SEK M

11,254

12,341

10%

2,787

2,829

2%

Operating margin[1] (EBITA), %

16.1%

16.5%


15.6%

15.7%


Operating margin[1] (EBIT), %

15.8%

16.2%


15.4%

15.3%


Income before tax[1], SEK M

10,549

11,673

11%

2,593

2,654

2%

Net income[1], SEK M

7,874

8,635

10%

1,918

1,964

2%

Operating cash flow, SEK M

10,467

10,929

4%

824

575

-30%

Earnings per share[1], SEK

7.09

7.77

10%

1.73

1.77

2%

[1] Excluding costs for a new restructuring program for the full year 2016, totaling SEK -1,597 M before tax, corresponding to SEK –1,221 M after tax.

Comments by the President and CEO

A good start to the year

The year took off with good organic growth of 4% in the first quarter, despite the negative calendar effect of two trading days less due to an early Easter. We achieved strong or good growth in all divisions. Global Technologies and Entrance Systems reported strong organic growth of 6% and 5% respectively. EMEA and Americas reported 3% organic growth and Asia Pacific reported 4%. Our new products contributed strongly, with high demand for electromechanical locks and for access control solutions.

The first quarter's operating income increased by 2% year-on-year and amounted to SEK 2,829 M, corresponding to an operating margin of 15.3%. The Group's underlying margin improved but was diluted by the acquisitions.

Operating cash flow was seasonally low totaling SEK 575 M for the quarter. We are continuing to focus on cost-efficiency and to deliver on our current restructuring program and, as previously communicated, we expect to announce a new program by the end of 2018.

First impressions

I spent my first months at ASSA ABLOY on the move, visiting the different Group locations to meet our people, our partners and our customers as well as to get acquainted with the sites, the corporate culture and the business. So far, I have visited 18 of our main locations and I am impressed by the competence, the innovation capacity and the technology driven culture. There have been several changes in ASSA ABLOYs executive team over the last 12 months. I am convinced that we have a strong team in place, equipped with energy and ambition to continue the Group's successful journey. I am both eager and humble in taking on the mission to further develop ASSA ABLOY.

Strong market position

As the new CEO, it is very encouraging to see our strong market position. Product and innovation leadership, backed by the largest installed base of door opening solutions in the world, gives us a very strong platform to grow from. I am confident that we will create new business opportunities through our new products and solutions, and that we have seen only the initial phase of the market transition and technology shift from mechanical solutions to digital, connected products and services.

Strategic direction

ASSA ABLOY's strategy, with focus on market presence, product leadership and cost efficiency, has been very successful for many years. In combination with a strong acquisition agenda, this strategy has generated significant long-term value. I look forward to further developing this successful strategy together with my colleagues.

Nico Delvaux
President and CEO

Further information can be obtained from:

Nico Delvaux,
President and CEO,
Tel: +46 8 506 485 82

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, Sweden.

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 information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CEST on 26 April 2018.

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SOURCE ASSA ABLOY

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