ASSA ABLOY reported its second quarter 2016 results. Net sales increased by 5% to SEK 17,894 million, of which 4% was organic growth and 4% was acquired growth. The company reported strong growth in Americas, EMEA and Global Technologies and good growth in Entrance Systems, and negative growth in Asia-Pacific owing to weak demand in China.
 
In addition, contracts have been signed for the acquisition of six companies with combined expected annual sales of about SEK 950 million. Operating income (EBIT) increased by 6% to SEK 2,910 million and the operating margin was 16.3%.
 
“The second quarter of the year showed strong demand for ASSA ABLOY,” said Johan Molin, president and CEO. “The mature markets in general produced strong growth, something we have not seen since the financial crisis, at the same time as the emerging markets continued their slowdown. Sales increased by 5% during the quarter, of which 4% was organic growth. Operating income outstripped sales growth and increased by 6%.
 
“In Americas, EMEA and Global Technologies an encouraging sales growth continued, while Entrance Systems showed a rather weaker growth,” Molin added. “The downturn in Asia-Pacific continued because of a weak demand situation, especially in China. The emerging markets also remained weak, but with some bright points in eastern Europe and in Latin America apart from Brazil.
 
“My judgment is that the global economic trend remains weak, but with a positive trend in America and parts of Europe,” Molin concluded. “Elsewhere, 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.”