· 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.
Another strong quarter for ASSA ABLOY
| Source: ASSA ABLOY AB
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