Allegion, a leading global provider of security products and solutions, has reported third-quarter 2015 net revenues of US$544.5 million and net loss of $27.1 million, or $0.28 loss per share from continuing operations.
Allegion, a leading global provider of security products and solutions, has reported third-quarter 2015 net revenues of US$544.5 million and net loss of $27.1 million, or $0.28 loss per share from continuing operations. Excluding charges related to restructuring, acquisitions and divestitures, adjusted net earnings were $89.5 million, or $0.92 per share, up 35.3 percent when compared with third-quarter 2014 adjusted EPS of $0.68.
Third-quarter net revenues decreased 0.4 percent, when compared to the prior year period (up 5.1 percent on an organic basis). Electronic product sales grew more than 30 percent in the quarter, reflecting the benefit of increased innovation and new product introductions.
The Americas segment revenue decreased 1 percent (up 7 percent on an organic basis). The organic growth was driven by strong non-residential and residential performance. Overall revenue declined due to unfavorable foreign currency and the divestiture of the company’s Venezuelan business, partially offset by the benefit of prior acquisitions.
The EMEIA segment revenues increased 2.2 percent (up 2.2 percent on an organic basis), reflecting improved pricing, soft but stable markets and acquisitions that more than offset unfavorable foreign currency.
The Asia Pacific segment revenues were flat, when compared to the prior year period (down 10.2 percent on an organic basis). Strong growth in the hardware business and favorable contribution from acquisitions offset unfavorable foreign currency and a decline in the system integration business, Bocom Wincent, that reflects softening local economies as well as the delay and timing of large projects.
Third-quarter adjusted operating margin was 21.5 percent, compared with 20.3 percent in 2014. The 120-basis-point improvement in adjusted operating margin was driven by favorable price, volume leverage, acquisitions and productivity that more than offset increased investments, inflation and unfavorable foreign exchange rates. All regions delivered adjusted operating margin improvement in the quarter.
“We continue to execute at a very high level, delivering industry-leading organic growth and margins,” said David D. Petratis, Allegion chairman, president and CEO. “We are achieving strong results while executing on a significant number of initiatives. In the past few months, we’ve finalized three acquisitions, completed one divestiture and announced another, issued $300 million of senior notes, completed the amendment of our credit facility and achieved ratification of our restructuring plan for our Italian operations.”
“Organic growth throughout the last 12 months has exceeded 6 percent for the business, led by double-digit electronics growth,” Petratis added. “Our electronics portfolio continues to expand, now including the addition of Schlage Sense – our most advanced residential lock yet with Grade 1 security, built-in alarm technology and smart phone capability.”