10.24.16
ASSA ABLOY reported stable progress during the third quarter of 2016. Third quarter sales totaled SEK 18,025 million ($2.017 billion), 2% organic growth and 2% acquired growth. The company noted strong growth for Global Technologies and Americas, good growth for Entrance Systems and growth for EMEA, while suffering negative growth for Asia Pacific due to weak demand in China.
Operating income (EBIT) was SEK 3,020 million ($338 million). The operating margin was 16.8%. Operating cash flow increased by 1% to SEK 2,830 million ($317 million).
“The third quarter of the year showed satisfactory growth for ASSA ABLOY generally, with the exception of Asia Pacific,” said Johan Molin, president and CEO. “In general the mature markets made good progress while the growth markets continued to show subdued demand, apart from Latin America and India. In Global Technologies and Americas there was strong growth during the quarter, driven by successful marketing efforts and the launch of innovative new products. Entrance Systems showed good growth. EMEA showed growth despite some impact from a negative calendar effect. Growth in Asia Pacific remained negative because of the weak demand in China.”
“The organic growth was rather weaker this quarter and amounted to 2%,” Molin reported. “Operating income remained strong and the operating margin was 16.8%. Operating income for the quarter amounted to SEK 3,020 million, with an operating margin of 16.8%, mainly due to positive organic growth, lower raw-material costs and other significant savings. Operating cash flow remained strong.”
“My judgment is that the global economic trend remains weak, but with a positive trend in America and parts of Europe. 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,” Molin concluded.
Operating income (EBIT) was SEK 3,020 million ($338 million). The operating margin was 16.8%. Operating cash flow increased by 1% to SEK 2,830 million ($317 million).
“The third quarter of the year showed satisfactory growth for ASSA ABLOY generally, with the exception of Asia Pacific,” said Johan Molin, president and CEO. “In general the mature markets made good progress while the growth markets continued to show subdued demand, apart from Latin America and India. In Global Technologies and Americas there was strong growth during the quarter, driven by successful marketing efforts and the launch of innovative new products. Entrance Systems showed good growth. EMEA showed growth despite some impact from a negative calendar effect. Growth in Asia Pacific remained negative because of the weak demand in China.”
“The organic growth was rather weaker this quarter and amounted to 2%,” Molin reported. “Operating income remained strong and the operating margin was 16.8%. Operating income for the quarter amounted to SEK 3,020 million, with an operating margin of 16.8%, mainly due to positive organic growth, lower raw-material costs and other significant savings. Operating cash flow remained strong.”
“My judgment is that the global economic trend remains weak, but with a positive trend in America and parts of Europe. 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,” Molin concluded.
