28 Oct 2009

ASSA ABLOY, Besam's parent company, show positive trends in Q3 report

ASSA ABLOY’s Q3 report for 2009 shows positive trends on markets outside of the USA and high profitability.

"Positive trends during the quarter were that Asia returned to growth and that the downturn in Europe was less negative. However, the North American market continued to weaken as a result of falling non-residential construction activity," says Johan Molin, President and CEO.

"Especially pleasing are the sustained high level of profit and the extremely strong cash flow, which are the fruits of the rapid streamlining of production, working capital and our highly successful restructuring program.

Johan Molin continues to comment on the fourth quarter by predicting challenges in both sales and earnings due to the continuing weakening of the important US market.

The Entrance Systems division reported sales of SEK 896 M (766) for the third quarter, representing organic growth of -2%. Continued good sales on the service side compensated for much of the reduction in new-product sales and acquired growth amounted to 12%. Operating income amounted to SEK 135 M (110), giving an operating margin (EBIT) of 15.0% (14.3). Return on capital employed, excluding restructuring costs, amounted to 14.6% (13.5). Operating cash flow before interest paid totaled SEK 101 M (61).

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