ASSA ABLOY Reports 4Q, Full Year Results for 2011

ASSA ABLOY’s sales increased during the fourth quarter by a full 22%, including 4% organic growth, and totaled SEK 11,744 million ($1.76 billion). The company reported strong growth in Asia, Africa, Global Technologies and Entrance Systems, while the markets in Europe and North America were stable.

The acquisitions of Albany Door Systems and Securistyle were completed and agreement signed for the acquisition of Dynaco. The combined annualized sales from these companies is SEK 1,850 million, representing 5% growth.

Operating income (EBIT) amounted to SEK 1,881 million, an increase of 17%. The operating margin was 16.0%.

For the full year, sales increased by 13%, including 4% organic growth, and totaled SEK 41,786 million ($6.27 billion). Operating income (EBIT) amounted to SEK 6,624 million ($993 million), representing an increase of 10%. The operating margin was 15.9%.

“It is with great satisfaction that I can report that the fourth quarter set new records in both sales and earnings,” said Johan Molin, president and CEO of ASSA ABLOY. “Sales increased by a full 22%, while operating income increased by 17%. It was particularly pleasing that the group’s increasing exposure on the emerging markets meant that total organic growth amounted to a good 4% despite a weak demand on the mature markets.

“A number of innovative new products in both the mechanical and electromechanical areas were launched during the year, and the share of sales coming from new products rose to over 20%, almost a doubling compared to earlier figures. In addition, the acquisitions of ActivIdentity and LaserCard during the year mean that the group now can offer complete systems for advanced public ID solutions. The strategic acquisition of Crawford meant that ASSA ABLOY took a leading position in the growing field of entrance automation,” Molin added.

“Operating income for the full year increased by a good 10%, supported by efficiency improvements and the continuing relocation of production to low-cost countries,” Molin continued. “Operating cash flow continued strong and exceeded 100% of pre-tax profit.

“Acquisition activity was high throughout the year, and 18 acquisitions with a combined annualized sales of SEK 6,800 million were completed, representing 18% growth. The largest transaction during the year was the acquisition of Cardo and the subsequent divestments of Cardo Flow Solutions and Lorentzen & Wettre,” he stated. “During January, the acquisitions of Albany Door Systems in America and Securistyle in Britain were completed. An agreement has also been signed for the acquisition of Dynaco in Belgium. This means that for 2012 the strategic target of 5% annual acquired growth has already been achieved.

“Looking forward into 2012, continued good growth on the emerging markets is expected, but at a lower level than last year. On the mature markets a stable development is expected with an unchanged or slightly positive sales trend,” Molin concluded. “The underlying business cycle continues to be affected by the uncertainty on the financial markets and budget restrictions in many countries, which primarily impacts the market segments that are dependent on public financing.”