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22/10/2018

Assa Abloy shows strong organic growth

Stockholm, Sweden

Nico Delvaux, President and CEO, Assa Abloy

Assa Abloy's third quarter figures recently released show net sales increased by 15%, with organic growth of 5% and acquired net growth of 2%. Strong sales growth was demonstrated in Global Technologies and Americas and good growth in Entrance Systems, whilst EMEA and Asia Pacific remained stable. Three new acquisitions are also expected to contribute sales of around SEK 1,200 M per year.

President and CEO of Assa Abloy, Nico Delvaux commented. "The demand for our products continued to grow at a good level in most of our markets during the third quarter and in the Global Technologies and Americas divisions in particular. Following a strong start to the year for Global Technologies, the growth accelerated during the third quarter."

In the official statement he goes on to say that during the last five years Assa Abloy Hospitality’s performance has been very impressive, with innovative new solutions, combined with a solid financial development. The business has expanded from offering solutions for hotels and marine cruise ships into solutions for other verticals such as elderly care, student accommodation and logistics. "As a result of this transformation, the Hospitality organisation will now evolve under a new name, Assa Abloy Global Solutions, where we will develop the existing business and look for new opportunities to build global solutions for our customers."

In addition he said that HID Global is also developing positively. "Two years ago Assa Abloy set a target to double HID’s revenue in five years’ time through organic sales and acquisitions. With the recent announcement of the acquisition of Crossmatch, we are on track to reach this target. Crossmatch allows us to offer biometric identity in critical applications and complements our total offering."

In Americas the growth was mainly driven by the development in the US. Delvaux believes it is very encouraging that both the commercial and residential markets grew well during the quarter. "In both segments our electromechanical products are market leaders and we note a strong demand for our innovative new solutions."

Finally he commented on the appointment of Erik Pieder, who will begin his new post at Assa Alboy as Chief Financial Officer in January 2019.  


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