SecurityWorldMarket

09/02/2016

Assa Abloy closes a strong financial year

Stockholm, Sweden

Johan Molin, President and CEO, Assa Abloy

“The final quarter of the year continued strongly for Assa Abloy, with a rise in sales of 15% for the quarter and totaling 20% for the year,” Johan Molin, President and CEO comments on the company's year end results. “Operating income also grew very satisfactorily by a full 13% for the quarter and a total of 20% for the full year.

“Organic growth was strong, at a full 5% for the quarter. The strong sales trend in the USA, Europe and the Pacific region continued unchanged. The sales trend in the developing countries remained good except in China, where sales continued to fall. However, a weaker demand picture can be perceived in many developing markets, linked to a shortage of financing for major projects. This principally affected Global Technologies."

He also commented on the fact that many customers are now embracing the change and converting from mechanical style locking systems to electronic and electromechanical systems. “It is clear that Assa Abloy has established a leadership in this area for both commercial and residential applications. Particularly striking during the year was the strong demand for digital door-locks for so-called home automation in the USA, and for the Cliq system based on the new cloud technology."

Assa Abloy has also been active on the acquisitions trail over the last few months. “During the quarter Cedes was acquired – an interesting technology company that adds intelligence to connected doors, mainly in Entrance Systems. Another technology acquisition was made in HID through the purchase of IAI, which is a leader in advanced printers mainly for the Government sector and banks. Three acquisitions were also made in Brazil, where Assa Abloy has built a market-leading position over a short period."

“Operating income increased by a full 13% during the quarter. The organic growth of 5% resulted in a good underlying growth in the operating margin, to which continued efficiency improvements contributed strongly. Operating margin remained on virtually the same level as in the fourth quarter of 2014 despite higher negative impacts from exchange-rate effects and dilution from acquisitions as a consequence of the many acquisitions made at the end of the year".

In conclusion, Johan Molin commented on the company's future strategy and market outlook. “My judgment is that the global economic trend remains weak. Although America is showing a positive trend, Europe and many of the Emerging Markets are stagnating. However, our strategy of expanding in the Emerging Markets remains unchanged, since they are expected to achieve very good economic growth long term. We are also continuing our investments in new products, especially in the growth area of electromechanics.”


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