Continued Good Progress for ASSA ABLOY

ASSA ABLOY reported its first quarter 2014 results. The Group’s sales totaled SEK 12,305 million ($1.885 billion). Organic growth for comparable units was 4%. Acquired units contributed 8%. Operating income before depreciation, EBITDA, amounted to SEK 2,135 million. The corresponding EBITDA margin was 17.3%. The profit margin was 13.9%

“The first quarter showed a continued very good performance for ASSA ABLOY, with an increase in sales of 13% and an improvement of a full 12% in operating income,” said Johan Molin, president and CEO.

“The global economy remains uncertain,” Molin added. “The first quarter was characterized by a clear improvement in Europe, helped to some extent by the effect of Easter, but some weakening in the USA, probably due to the very cold weather. The performance of the emerging markets continued to be very good in South America and Africa, while Asia showed lower growth. The Group’s organic growth was a good 4%, while acquired sales rose by 8%, mainly through the acquisitions of Ameristar, Amarr and Mercor.

“The acquisition activity has continued at a high level in 2014, with four new minor acquisitions which add a further SEK 400 M to sales,” he added. “Particularly exciting was the acquisition of Lumidigm in America, which brings us unique expertise and patented technology in biometry. Operating income continued to improve, by a full 12%. This was due to increased efficiency, good sales of new products and positive savings from the restructuring programs we have carried out. The improvement was very pleasing considering that several acquired units with low profitability were consolidated during the quarter.”