07.17.15
ASSA ABLOY reported excellent sales growth in 2Q 2015, with sales increasing by 22% in the quarter, with 4% organic growth, totaling SEK 17,082 million ($2.07 billion).
The company reported strong growth in Global Technologies and good growth in Americas, EMEA and Entrance Systems, with negative growth in Asia-Pacific as result of continued weak demand in China. Three acquisitions were signed during the quarter, with expected annual sales totaling just over SEK 700 million ($85 million).
Operating income (EBIT) for the quarter increased by 24% to SEK 2,742 million ($332 million). The operating margin was 16.1%.
“The second quarter and the first six months showed a continued very strong performance for ASSA ABLOY, with a rise in sales of a full 22% in the quarter and a very strong improvement in operating income of 24%,” says Johan Molin, president and CEO. “The good organic growth in all divisions, apart from in China, was very pleasing and an indication of strength in tough economic times.
“Organic growth during the quarter was 4%, driven mainly by a very strong performance in Global Technologies and good growth in the Americas, EMEA and Entrance Systems divisions,” Molin added. “Performance in Asia Pacific was also very gratifying, with strong growth in all regions except China, where sales remained weak.
“Operating income continued to improve strongly during the quarter, by a full 24%. Our organic growth combined with continued improvements in efficiency meant that the operating margin continued its positive trend, rising to 16.1%, in spite of the turbulence on the foreign-exchange markets and dilution from acquisitions.
“My judgment is that the global economic trend remains weak,” Molin reported. “Although America is showing a positive trend, Europe and many of the emerging markets are stagnating. However, our strategy of expanding on the emerging markets remains unchanged, since in the long term they are expected to achieve very good economic growth. We are also continuing our investments in new products, especially in the growth area of electromechanics.”
The company reported strong growth in Global Technologies and good growth in Americas, EMEA and Entrance Systems, with negative growth in Asia-Pacific as result of continued weak demand in China. Three acquisitions were signed during the quarter, with expected annual sales totaling just over SEK 700 million ($85 million).
Operating income (EBIT) for the quarter increased by 24% to SEK 2,742 million ($332 million). The operating margin was 16.1%.
“The second quarter and the first six months showed a continued very strong performance for ASSA ABLOY, with a rise in sales of a full 22% in the quarter and a very strong improvement in operating income of 24%,” says Johan Molin, president and CEO. “The good organic growth in all divisions, apart from in China, was very pleasing and an indication of strength in tough economic times.
“Organic growth during the quarter was 4%, driven mainly by a very strong performance in Global Technologies and good growth in the Americas, EMEA and Entrance Systems divisions,” Molin added. “Performance in Asia Pacific was also very gratifying, with strong growth in all regions except China, where sales remained weak.
“Operating income continued to improve strongly during the quarter, by a full 24%. Our organic growth combined with continued improvements in efficiency meant that the operating margin continued its positive trend, rising to 16.1%, in spite of the turbulence on the foreign-exchange markets and dilution from acquisitions.
“My judgment is that the global economic trend remains weak,” Molin reported. “Although America is showing a positive trend, Europe and many of the emerging markets are stagnating. However, our strategy of expanding on the emerging markets remains unchanged, since in the long term they are expected to achieve very good economic growth. We are also continuing our investments in new products, especially in the growth area of electromechanics.”