- Sales increased by 2%, with organic growth of 3%, and totaled $US1,880 million(SEK 12,239 million).
- Strong growth in Americas and Global Technologies and good growth in Asia Pacific.
- Weak but stable development in EMEA and Entrance Systems.
- Sales increased by 2%, with organic growth of 3%, and totaled $US1,880 million(SEK 12,239 million).
- Strong growth in Americas and Global Technologies and good growth in Asia Pacific.
- Weak but stable development in EMEA and Entrance Systems.
- Operating income (EBIT) increased by 5% and amounted to $303 million. The operating margin was 16.1% (15.7).
- Net income amounted to $211 million.
- Earnings per share rose by 5% to $0.57.
- Cash flow remained good and totaled $244 million.
Comments by the President and CEO
“I am pleased that the organic growth has returned this quarter,” says Johan Molin, President and CEO. “It is particularly pleasing that North and South America and Asia showed good growth, while Europe stabilized at around zero. Total growth for the Group was 7% in local currencies, made up of 3% organic growth and 4% acquired growth. However, exchange-rate effects were strongly negative, at -5%, which meant that overall growth was kept to 2%.
“Both earnings and margins continued to improve as a result of a increased share of new products and major savings and efficiency measures in production. Especially satisfying are the strong earnings from EMEA and Entrance Systems despite their lack of growth, at the same time as Americas and Global Technologies showed strongly rising margins.
“Activity on the acquisition front remained very high, with several interesting acquisitions under discussion. However, only two minor acquisitions, which complement Entrance Systems' local presence, came to completion during the quarter.
“My assessment is that the outlook is unchanged, with a continuing weak world economy affected by the budget cutbacks that many countries are making. It is therefore of the utmost importance that Assa Abloy should continue its expansion on the new markets, which are expected to go on growing well, and that our investments in new products and market presence are sustained.”