27 Jul 2011

Q2 numbers show solid progress for ASSA ABLOY

Besam's parent company, ASSA ABLOY, reported sales growth of 25% in local currencies during the 2nd financial quarter of 2011, of which 20% was acquired growth and 5% was organic.

ASSA ABLOY President and CEO Johan Molin noted that Asia and South America showed strong growth while development in the mature markets was slow but stable.

“It was pleasing that our electromechanical products did extremely well and continued to grow in all divisions and on all markets,” Johan said. "Operating income improved by 7% in spite of strong negative currency effects. The operating margin was affected positively by the volume growth and the efficiency and restructuring programs at the same time as it was diluted by acquisitions and currency.”

Sales for the quarter in Entrance Systems division, of which Besam is a part, totaled SEK 2,235 M (1,012), with organic growth amounting to 5% (-2). Growth was good for all units including the newly acquired Crawford (formerly Cardo) and FlexiForce. Profitability also showed a positive trend for all units and the integration of Crawford and FlexiForce proceeded at a satisfactory pace. Acquired growth amounted to 135%. Operating income totaled SEK 281 M (145), giving an operating margin of 12.6% (14.3). The operating margin was diluted by 2.4% mainly from the acquisition of Crawford (Cardo). Return on capital employed amounted to 10.6% (13.6). Operating cash flow before interest paid totaled SEK 166 M (106).

The full Q2 financial report can be downloaded from ASSA ABLOY's global website.