ASSA ABLOY Reports Good Start to the Year

ASSA ABLOY reported its results for the first quarter of 2018. Net sales increased by 2% to SEK 18,550 million ($2.138 billion), with organic growth of 4% and acquired net growth of 2%. Strong growth was shown by Global Technologies and Entrance Systems and good growth by Asia Pacific, EMEA and Americas
 
Operating income (EBIT) increased by 2% and amounted to SEK 2,829 million ($326 million), corresponding to an operating margin of 15.3%.
Net income amounted to SEK 1,964 million ($226 million). Operating cash flow amounted to SEK 575 million ($66 million).
 
“The year took off with good organic growth of 4% in the first quarter, despite the negative calendar effect of two trading days less due to an early Easter,” Nico Delvaux, president and CEO, said. “We achieved strong or good growth in all divisions. Global Technologies and Entrance Systems reported strong organic growth of 6% and 5% respectively. EMEA and Americas reported 3% organic growth and Asia Pacific reported 4%. Our new products contributed strongly, with high demand for electromechanical locks and for access control solutions.
 
“The first quarter’s operating income increased by 2% year-on-year and amounted to SEK 2,829 million, corresponding to an operating margin of 15.3%. The Group’s underlying margin improved but was diluted by the acquisitions,” added Delvaux.
 
 
“I spent my first months at ASSA ABLOY on the move, visiting the different Group locations to meet our people, our partners and our customers as well as to get acquainted with the sites, the corporate culture and the business,” Delvaux continued. “So far, I have visited 18 of our main locations and I am impressed by the competence, the innovation capacity and the technology driven culture. There have been several changes in ASSA ABLOYs executive team over the last 12 months. I am convinced that we have a strong team in place, equipped with energy and ambition to continue the Group’s successful journey. I am both eager and humble in taking on the mission to further develop ASSA ABLOY.
 
“As the new CEO, it is very encouraging to see our strong market position,” Delvaux concluded. “Product and innovation leadership, backed by the largest installed base of door opening solutions in the world, gives us a very strong platform to grow from. I am confident that we will create new business opportunities through our new products and solutions, and that we have seen only the initial phase of the market transition and technology shift from mechanical solutions to digital, connected products and services.”