Year-end report 2016

A summary of the main highlights for the fourth quarter and the full year 2016.

Solid underlying development in the fourth quarter

  • Sales increased by 6% to SEK 19,484 M (18,301), with organic growth of 1% (5). Acquisitions and divestments were 2%, with 3% acquisitions and -1% divestments
  • Good growth for Entrance Systems and EMEA and growth for Americas and Global Technologies 
  • Negative growth for Asia Pacific, mainly due to weak demand in China
  • The previously announced restructuring program has been launched with an operating cost of SEK 1,597 M
  • Operating income1) (EBIT) was SEK 2,913 M (3,038), corresponding to an operating margin of 15.0% (16.6)– Adjusted operating income excluding a write down in China of SEK 300 M, was SEK 3,213 M (3,038) corresponding to a margin of 16.5% (16.6).
  • Net income1) amounted to SEK 2,088 M (2,120)
  • Earnings per share1) amounted to SEK 1.88 (1.91)
  • Operating cash flow remained strong and amounted to SEK 4,620 M (4,625)
  • The Board of Directors proposes a dividend of SEK 3.00 per share for 2016.

”The fourth quarter of the year had, as expected, somewhat lower growth for ASSA ABLOY since sales in the previous year were very strong,” says Johan Molin, President and CEO.

“In general, the mature markets had a good development, while many growth markets, especially China and the Middle East, had a weak demand."

Full year

The Group’s sales for the full year 2016 increased by 5% to SEK 71,293 M (68,099). Organic growth was 2% (4). Acquisitions and divestments contributed 3%, with 4% acquisitions and -1% divestments. Exchange-rate effects affected sales by 0%.

Operating income before depreciation, EBITDA, excluding restructuring costs, amounted to SEK 12,833 M (12,512). The corresponding margin, excluding restructuring costs, was 18.0% (18.4). The Group’s operating income, EBIT, excluding restructuring costs, amounted to SEK 11,254 M (11,079), which was an increase of 2% compared with previous year. The corresponding EBIT operating margin was 15.8% (16.3).

Earnings per share, excluding restructuring costs, amounted to SEK 7.09 (6.93), an increase of 2% compared with previous year. Operating cash flow totaled SEK 10,467 M (9,952).