ASSA ABLOY Reports Strong Organic Sales Growth in 3Q 2018

ASSA ABLOY reported strong organic sales growth in the third quarter of 2018, as net sales increased by 15% to SEK 21,191 million ($2.36 billion), with organic growth of 5% and acquired net growth of 2%. The company reported strong sales growth in Global Technologies and Americas and good growth in Entrance Systems. Sales in EMEA and Asia Pacific were stable.
 
Three acquisitions have been signed with combined expected annual sales of about SEK 1,200 million ($133 million). Operating income (EBIT) amounted to SEK 3,424 million ($381 million), with an operating margin of 16.2%. Operating cash flow increased by 13% to SEK 3,004 million ($334 million).
 
“The third quarter continued with strong organic growth of 5%,” Nico Delvaux, ASSA ABLOY’s president and CEO, said. “Organic growth was very strong in Global Technologies (12%) and Americas (10%) and continued to be good in Entrance Systems (4%), while EMEA and Asia Pacific reported stable organic sales growth of 2% and 1% respectively. The demand for our products continued to grow at a good level in most of our markets during the third quarter and in the Global Technologies and Americas divisions in particular. Following a strong start to the year for Global Technologies, the growth accelerated during the third quarter.”
 
“During the last five years ASSA ABLOY Hospitality’s performance has been very impressive, with innovative new solutions, combined with a solid financial development,” Delvaux noted. “The business has expanded from offering solutions for hotels and marine cruise ships into solutions for other verticals such as elderly care, student accommodation and logistics. As a result of this transformation, the Hospitality organization will now evolve under a new name, ASSA ABLOY Global Solutions, where we will develop the existing business and look for new opportunities to build global solutions for our customers.
 
“HID Global is also developing positively. Two years ago ASSA ABLOY set a target to double HID’s revenue in five years’ time through organic sales and acquisitions,” he added. “With the recent announcement of the acquisition of Crossmatch, we are on track to reach this target. Crossmatch allows us to offer biometric identity in critical applications and complements our total offering.”