Assa Abloy sees strong third quarter
The world’s largest lock maker, Assa Abloy, reported third quarter earnings at the end of last week that demonstrated a strong underlying business. It also announced four acquisitions, and logged a small beat on sales. Nonetheless, ongoing problems in China dented the company’s performance, seeing Asia Pacific grow by just 1%. This sole negative in an otherwise positive showing is not unexpected – nor is the company leaving it unattended.
Assa Abloy’s share price edged up by 1% last week
SOURCE: Yahoo Finance
The company said that net profit rose to 2.38 billion Swedish kronor in the three months to September 30, meeting analysts’ expectations. When it came to sales, however, Assa Abloy managed to beat the Street, reporting a 15% rise against the same quarter in the previous year, and delivering 21.19 billion Swedish kronor. Analysts had been hoping to see sales of 20.99 billion Swedish kronor. The company also said that operating cash flow increased by 13% year on year.
Speaking on the company’s earnings call, Assa Abloy’s CEO, Nico Delvaux, chose to highlight the role of acquisitions in his on-going strategy – and one recent acquisition in particular:
“We acquired four companies in the quarter; 14 year to date, and definitely the highlight of this quarter was the acquisition of Crossmatch, a U.S.-based leader in biometric identity management, company with revenue of around $125 million; 270 employees, and they’re all ours now to offer biometric identity into critical applications, and they also help us to complement further our total solutions offering for HID, very excited about this acquisition.”
Adding Crossmatch’s expertise in biometric identity management services to HID (which stands for Hughes Identification Devices, and focuses on identity verification for security access) could result in an industry titan all of its own.
Dominion holds Assa Abloy in its Global Trends Managed Fund.
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