02.03.17
ASSA ABLOY reported its results for 4Q 2016. Sales increased by 6% to SEK 19,484 million ($2,232 billion). (18,301), with organic growth of 1%. Acquisitions and divestments accounted for 2% growth, with 3% due to acquisitions and -1% divestments.
The company reported good growth for Entrance Systems and EMEA and growth for Americas and Global Technologies, with negative growth for Asia Pacific, mainly due to weak demand in China.
Operating income (EBIT) was SEK 2,913 million ($334 million), corresponding to an operating margin of 15.0%. Last year was 16.6%. Adjusted operating income excluding a write down in China of SEK 300 M, was SEK 3,213 million ($368 million) corresponding to a margin of 16.5%. Operating cash flow remained strong and amounted to SEK 4,620 million ($529 million).
”The fourth quarter of the year had, as expected, somewhat lower growth for ASSA ABLOY since sales in the previous year were very strong,” said Johan Molin, president and CEO. “In general, the mature markets had a good development, while many growth markets, especially China and the Middle East, had a weak demand.
”It was very positive that Entrance Systems maintained its strong performance in both Europe and the US, supported by a number of new products and service concepts that have been launched in recent years. It was pleasing that the demand for electromechanical lock solutions remained strong in EMEA and that sales in Americas continued at a high level. At Global Technologies interest in virtual keys remained strong and many customers are rolling out SEOS solutions. Also, sales of solutions using mobile keys to hotels continue to be successful. The demand remained weak in China, as expected.
“My judgment is that the global economic trend remains weak. On most markets in North and South America and in parts of Europe there is a positive trend, but on many markets in Asia and the Middle East the trend is weak. However, our strategy of expanding our market presence, even on the emerging markets, remains unchanged,” Molin added. “We are also continuing our investments in new products, especially in the growth area of electromechanics.”
The company reported good growth for Entrance Systems and EMEA and growth for Americas and Global Technologies, with negative growth for Asia Pacific, mainly due to weak demand in China.
Operating income (EBIT) was SEK 2,913 million ($334 million), corresponding to an operating margin of 15.0%. Last year was 16.6%. Adjusted operating income excluding a write down in China of SEK 300 M, was SEK 3,213 million ($368 million) corresponding to a margin of 16.5%. Operating cash flow remained strong and amounted to SEK 4,620 million ($529 million).
”The fourth quarter of the year had, as expected, somewhat lower growth for ASSA ABLOY since sales in the previous year were very strong,” said Johan Molin, president and CEO. “In general, the mature markets had a good development, while many growth markets, especially China and the Middle East, had a weak demand.
”It was very positive that Entrance Systems maintained its strong performance in both Europe and the US, supported by a number of new products and service concepts that have been launched in recent years. It was pleasing that the demand for electromechanical lock solutions remained strong in EMEA and that sales in Americas continued at a high level. At Global Technologies interest in virtual keys remained strong and many customers are rolling out SEOS solutions. Also, sales of solutions using mobile keys to hotels continue to be successful. The demand remained weak in China, as expected.
“My judgment is that the global economic trend remains weak. On most markets in North and South America and in parts of Europe there is a positive trend, but on many markets in Asia and the Middle East the trend is weak. However, our strategy of expanding our market presence, even on the emerging markets, remains unchanged,” Molin added. “We are also continuing our investments in new products, especially in the growth area of electromechanics.”
