Solid underlying performance for ASSA ABLOY

"The second quarter continued with strong organic growth of 5%. Organic growth was strong in Americas (9%), Global Technologies (6%) and Entrance Systems (6%), while Asia Pacific and EMEA reported stable organic sales growth of 2%," says Nico Delvaux, President and CEO of ASSA ABLOY.

"The second quarter’s operating income declined by 6% year-on-year to SEK 2,911 M, corresponding to an operating margin of 13.8%. The Group’s adjusted operating income, excluding write-downs of operating assets of SEK –400 M, was SEK 3,311 M corresponding to a stable operating margin of 15.7%. 

Operating cash flow was strong in the second quarter and increased by 11% to SEK 2,855 M. We are continuing with full focus on our current restructuring programs and, as previously announced, we expect to launch a new program by the end of 2018."

Key figures

Net sales increased by 9% to SEK 21,140 M (19,387), with organic growth of 5% (2) and acquired net growth of 2% (2)

Strong growth was shown by Americas, Global Technologies and Entrance Systems and stable growth by Asia Pacific and EMEA

One-off costs in Asia Pacific during the quarter amounted to SEK –5,595 M for impairment of goodwill and other intangible assets and SEK –400 M for write-downs of operating assets

Contracts have been signed for the acquisition of eight companies with expected combined annual sales of about SEK 1,200 M. The Wood Door business in the USA, with annual sales of about SEK 600 M, has been divested

Operating income (EBIT) 1) amounted to SEK 2,911 M (3,114), with an operating margin of 13.8% (16.1)

Net income 1) amounted to SEK 2,049 M (2,179)

Earnings per share 1) amounted to SEK 1.84 (1.96)

Operating cash flow increased by 11% to SEK 2,855 M (2,575).