29 Jul 2009

ASSA ABLOY Q2 (2009) Report

Besam's parent company, ASSA ABLOY, notes a continued weak market but strong earnings in the 2nd quarter of 2009.

"The negative trend on the market continued during the second quarter. In spite of this, profit and cash flow were maintained at very high levels as a result of the fast capacity adjustments of production combined with the successful restructuring program," says ASSA ABLOY President and CEO Johan Molin. "Our expectation is still that the remainder of 2009 will be extremely challenging for both sales and earnings. During the second half of the year the important US market will weaken further owing to a severe cutback in commercial construction projects. Investments in improved market coverage and in new products are proceeding on an undiminished scale, in parallel with continuing adaptation of the organization to the current market situation."

2nd Quarter Entrance Systems

ntrance Systems division reported sales of SEK 863 M (758) for the quarter, representing organic growth of -5%. Continued good sales on the service side compensated to some extent for the reduction in new-product sales. Acquired growth amounted to 6%. Operating income amounted to SEK 128 M (105), giving an operating margin (EBIT) of 14.9% (13.8). Return on capital employed amounted to 15.1% (13.5). Operating cash flow before interest paid totaled SEK 149 M (65).

For complete ASSA ABLOY 2nd Quarter results, visit www.assaabloy.com.