5 Dec 2006

ASSA ABLOY is more well-oiled than the stock exchange thinks

Privata Affärer Placeringsguiden, 04/12/2006

The effects of ASSA ABLOY's structural programme could be better than what the stock exchange thinks, writes Mikael  Hårde .

ASSA ABLOY could be a good long-term buy. In 2009, ASSA ABLOY's structural programme will be fully implemented which will result in fewer factories and a larger share of its production will take place in low-wage countries. This should result in savings of SEK600 million yearly. In the first nine months of this year, its profit margin was 15 percent and growth 14 percent.

Consequently, ASSA ABLOY is still a company with good profitability. There is also a chance that the market is underestimating the effects of the structural programme, which in combination with increased demands and greater growth, should boost margins further, writes Mikael  Hårde.

(Copyright Observer Sverige AB)