21 apr 2010

ASSA ABLOY Q1 (2010) Report

First quarter financial results show improved markets and high profitablity for Besam's parent company, ASSA ABLOY.

President and CEO Johan Molin says ASSA ABLOY's first quarter financial numbers indicate that we have passed the bottom of the economic cycle.

"All markets stabilized and it was particularly pleasing that EMEA showed growth for the first time since 2008, driven primarily by increased demand on the private housing market, and that Asia Pacific continued its strong growth," Johan Molin said. "However, the strong downturn on the North American new-construction market persisted, although at the same time signs of an upturn in North America were evident with the renovation market that started to grow."

The report indicates that income fell by a modest 2 percent by virtue of the underlying strengthening of the operating margin. Johan Molin credited the highly beneficial benefits that continue to be produced by successful efficiency and restructuring measures.

ENTRANCE SYSTEMS 1st Quarter Results

Sales for the quarter totaled SEK 954 M (822), with organic growth of -3%. Good sales on the service side compensated for much of the reduction in new-product sales, which were particularly weak in North America. Acquired growth amounted to 27%, largely due to Ditec. The division's operating income totaled SEK 134 M (128), giving an operating margin of 14.0% (15.5), which includes dilution from acquisitions of 2.8 percentage points. Return on capital employed amounted to 12.7% (14.8). Operating cash flow before interest paid totaled SEK 169 M (241).

The full report is available at www.assaabloy.com