26 Apr 2017

A strong start to 2017

First quarter

  • Sales increased by 14% to SEK 18,142 M (15,891), with organic growth of 6% (3). Acquisitions contributed 3%
  • Strong growth was shown by Global Technologies, Entrance Systems, Americas and EMEA, and good growth by Asia Pacific
  • Contracts have been signed for the acquisition of seven companies with expected combined annual sales of about SEK 700 M
  • Operating income (EBIT) increased by 16% and totaled SEK 2,787 M (2,411), which represents an operating margin of 15.4% (15.2)
  • Net income amounted to SEK 1,918 M (1,638)
  • Earnings per share amounted to SEK 1.73 (1.47)
  • Operating cash flow amounted to SEK 824 M (498).

 
Sales and income

First quarter
2016 2017 Δ
Sales, SEK M 15,891 18,142 14%
Of which:
Organic growth1)  400 1,022 6%
Acquisitions and divestments 490 448 3%
Exchange rate effects1)  -251 780 5%
Operating income (EBIT), SEK M 2,411 2,787 16%
Operating margin (EBIT), % 15.2% 15.4%
Income before tax, SEK M 2,209 2,593 17%
Net income, SEK M 1,638 1,918 17%
Operating cash flow, SEK M 498 824 65%
Earnings per share, SEK 1.47 1.73 17%

1) The sales components Organic growth and exchange rate effects has been restated for the first quarter 2016. No effect on sales numbers.

 
Comments by the President and CEO

”2017 started well for ASSA ABLOY with a strong organic growth of 6% and
with growth in all divisions,” says Johan Molin, President and CEO. The mature markets continued to achieve a good performance, with strong growth in many of our key markets such as the USA, Scandinavia, Britain and Germany. In China, where the trend has been very negative, we saw a stabilization of demand. In the Middle East and Brazil sales fell, however. It should be noted that the quarter had two extra days as a result of the late Easter, which contributed to the strong sales.

“We saw the strongest performance in Global Technologies with a full 9% organic growth. Sales growth for electromechanical lock solutions continues to be very good in all divisions and on nearly all markets, which is very much due to our technological leadership. We saw confirmation of this at ISC WEST, the USA’s most important security exhibition, where ASSA ABLOY won no fewer than ten prizes for best innovations.

“The applications of virtual keys are continuing to develop rapidly – both on the private residential market through so-called Connected Home solutions using mobile apps and on the commercial market in hotel locks, access control, virtual identities and trusted transactions, for example.

“During the quarter contracts were signed for the acquisition of seven companies, including Jerith. The company complements and strengthens our market-leading position in Perimeter Control in the USA. Jerith is a leading supplier of aluminum fencing for residential, commercial and industrial applications.

“Operating income for the quarter increased by a full 16% and amounted to SEK 2,787 M, with an operating margin of 15.4% (15.2). The margin also moved upward in all divisions apart from Asia Pacific in spite of greatly increased material prices. Normal price adjustments have been made to compensate for these. Operating cash flow improved by 65%, although the first quarter is seasonally weak.

“My judgment is that the global economic trend has improved to some degree. On most markets in North and South America and in parts of Europe there is a positive trend, but on some markets, chiefly in Asia and the Middle East, the trend is weak. However, our strategy of expanding our market presence, even on the emerging markets, remains unchanged. 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, 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 2017.