ASSA ABLOY Reports Strong Finish to 2017

ASSA ABLOY reported its results for the fourth quarter of 2017. Net sales increased by 3% to SEK 20,109 million ($2.54 billion), with organic growth of 5% and acquired net growth of 3%.
 
Operating income (EBIT) was SEK 3,359 million ($424 million), corresponding to an operating margin of 16.7%. Operating cash flow remained strong and amounted to SEK 4,876 million ($616 million).
 
“ASSA ABLOY ended 2017 with strong growth in the fourth quarter,” said Johan Molin, president and CEO. “Organically we grew by 5%, with positive trends for all divisions. Global Technologies and EMEA had strong growth of 9% and 5% respectively, and Americas, Entrance Systems and Asia Pacific all had good growth of 3-4%. Demand was positive for nearly all regions and business units, with strong demand for our electromechanical products and smart door locks.
 
“In EMEA we saw sales increase in all regions,” Molin added. “All business units in Americas also showed growth – even Brazil. In Asia Pacific we had growth in Pacific, South Korea and Southern Asia, while sales in China were stable. Our digital and mobile solutions continue to be very successful on the market. We saw strong growth in Global Technologies for access control products and mobile keys for both hotels and companies. In Entrance Systems we had strong growth for door automation, industrial doors and high-speed doors, among others.
 
“During the quarter our leadership in smart door locks was confirmed by our collaboration with Amazon, where they chose our Yale locks for their new investment in home deliveries. Collaboration in smart door locks was also initiated with Walmart and Google during the quarter, to start in 2018. I am confident that the majority of all private residences will be converted to smart door locks during the next decade. Our acquisition during the third quarter of August Home, a leading supplier of smart door solutions for the residential market in the USA, was therefore of strategic importance,” Molin reported.
 
“In December, Nico Delvaux was named as the new president and CEO of ASSA ABLOY AB,” Molin concluded. “He began his employment with us on Feb. 3, and during the next six weeks I will ensure a good handover to him before he takes over as CEO on March 15. Nico is a strong and experienced leader of global businesses and I am confident that ASSA ABLOY’s journey of profitable growth will continue under Nico’s leadership. With these comments I want to express my own thanks to all ASSA ABLOY’s employees and to wish them and my successor Nico Delvaux a continuing successful journey.”