Another Strong Quarter for ASSA ABLOY

ASSA ABLOY reported its third quarter 2015 results. Sales increased by 19%, and totaled SEK 17,465 million ($2.1 billion). Organic growth was 3%. The company noted strong growth in Americas, Entrance Systems and EMEA and a flat development in Global Technologies, as well as negative growth in Asia Pacific due to weak demand in China.
 
Nergeco in France and two other small businesses were acquired during the quarter, with expected annual sales in 2015 of about SEK 400 million ($48 million).
 
Operating income (EBIT) for the quarter increased by 19% to SEK 2,970 million ($358 million). The operating margin was 17.0%. Operating cash flow for the quarter was SEK 2,816 M ($39 million).
 
“The third quarter and the first nine months continued very strongly for ASSA ABLOY, with a rise in sales of 19% for the quarter and totaling 21% for the first nine months of the year,” said Johan Molin, president and CEO. “Operating income grew very satisfactorily by a full 19% for the quarter and a total of 22% for the nine-month period.
 
“Organic growth for the quarter was 3%, with the mature markets in the USA, the Pacific and Europe continuing their strong growth,” Molin added. “However, Global Technologies showed a weak development during the quarter because of delayed projects on the Government ID side and in Biometry. In Asia, the market downturn in China continued at the same time as other markets in the region showed strong growth.”