Assa Abloy beat expectations in first quarter
The world’s biggest lock maker, Assa Abloy, has reported first quarter results that beat analysts’ expectations. The Swedish security company has seen its operating profit grow faster than rivals recently, and this was reiterated in its latest quarterly results, where it rose by 16%, year-on-year. It’s total operating profit for the quarter sat at 2.79 billion SEK ($318 million), against predictions of 2.71 billion SEK.
Assa Abloy’s share price is up by 14%, year to date
SOURCE: Yahoo Finance
The company puts this growth down to a number of well-timed acquisitions and the shift towards digital access systems in security. The company also saw positive organic growth in all of its most important geographical regions. Assa Abloy’s CEO, Johan Molin, said:
“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.” The company also saw an unexpected 3% rise in organic growth in the Asia Pacific region against expectations of a 5% decline.
China was a big problem for the company last year. Not only were sales unimpressive, but a number of Assa Abloy’s acquisitions in the country were revealed to have inflated sales figures. The company made no comment on these issues in reporting, but there is little doubt that the results show an improving relationship with the region.
Dominion holds Assa Abloy in its Global Trends Managed Fund.
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