By Dominic Chopping 



  STOCKHOLM--Sweden's Assa Abloy AB on Friday posted a smaller-than-expected fall in second-quarter net profit, helped by a strong pickup in demand toward the end of the quarter and cost cuts. 


  The lock maker said net profit for the three months ended June 30 fell to 1.4 billion Swedish kronor ($154 million), from SEK2.56 billion for the year-earlier period. Sales for the quarter fell 15% to SEK19.95 billion. 


  A FactSet consensus had forecast quarterly profit of SEK1.06 billion on sales of SEK19.06 billion. The operating margin fell to 15.9% from 10.5%. 


  Even though some regions of the world are introducing new lockdowns, restrictions have generally eased gradually since May and currently all our factories are open, it said. 


  "If there are no significant new negative events, the company expects the financial performance to continue to gradually improve," Chief Executive Nico Delvaux said. 


  "The attractive fundamentals of our industry are intact and therefore our financial targets remain valid." 


  The company estimates that completed acquisitions and divestments, on a rolling 12-month basis as per June 30, will have an effect of 3% on sales in the third quarter of 2020 versus the same period last year, while the effect on the operating margin is estimated to be dilutive in the third quarter of 2020. 


  On the basis of the currency rates on June 30, the company estimates that the weighted currency effects on sales in the third quarter of 2020 versus the same period last year will be -3%, while the effect on the operating margin is estimated to be neutral in the third quarter of 2020. 


  Write to Dominic Chopping at dominic.chopping@wsj.com