Weak China demand causes negative growth in Asia for Assa Abloy

The year continues strongly for ASSA ABLOY, as it reported a sales increase by 22% in the second quarter of 2015. In Asia Pacific growth was however negative as result of continued weak demand in China.

Johan-Molin-Assa-Abloy

“The second quarter and the first six months showed a continued very strong performance for ASSA ABLOY, with a rise in sales of a full 22% in the quarter and a very strong improvement in operating income of 24%,” said Johan Molin, President and CEO. “The good organic growth in all divisions, apart from in China, was very pleasing and an indication of strength in tough economic times.

The world’s largest lock manufacturer registered 4% organic growth, and totalled SEK 17,082 M (13,964).

“Organic growth during the quarter was driven mainly by a very strong performance in Global Technologies and good growth in the Americas, EMEA and Entrance Systems divisions. Performance in Asia Pacific was also very gratifying, with strong growth in all regions except China, where sales remained weak.

The global opening solutions provider also made three acquisitions during the quarter, with expected annual sales totalling just over SEK 700 M.

Assa-Abloy-security-system

“In Finland the company Flexim was acquired, a leading Finnish supplier of security systems which provided important complementary market coverage. In Belgium the service and industrial door company L-Door was acquired, which complements Entrance Systems’ business in Belgium very well. On the important Middle Eastern market we succeeded in carrying through the purchase of Prometal, which manufactures security doors for local applications. This is an important product category for the specification market. Our acquisitions so far this year represent 3% in added sales.”

“The Group’s innovations in the form of new products are achieving great successes in the market. In the USA the Group has taken a strong lead in energy saving and smart locks for so-called Home Automation Systems. In Europe we are seeing the same trend, with our new electromechanical lock systems making particularly strong advances. The share taken by new products in the first half-year was over 30% of total sales, a very pleasing figure. We have also achieved a geographical broadening for similar electromechanical products in Asia during the quarter.”

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