Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Assa Abloy posts sales rebound but warns on costs

04/28/2021 | 06:30am EDT

STOCKHOLM (Reuters) -Sweden's Assa Abloy, the world's biggest lockmaker, reported profits above market expectations on Wednesday, but warned it may not be able to compensate for higher material prices this year.

Having risen around 25% so far this year, shares in the firm, which competes with Allegion and Stanley Black & Decker, fell 4.6% at 0947 GMT.

Assa CEO Nico Delvaux said that it would probably not be possible to fully compensate for rising material prices in 2021, citing prices for nickel, zinc and aluminium.

"There's a limit to what you can do. If it's 100% up you cannot fully compensate it," he told an investor call, adding material prices had risen to "unprecedented levels" in the last three months.

Barclays analyst Lars Brorson said investors disliked the "shift in message".

"Now the message is price/cost will be a headwind in 2021," he said in an e-mail.

Assa said there were positive signs stemming from eased pandemic restrictions in the United States and predicted its non-residential aftermarket business would gradually normalize from current low levels and add to already strong demand in the residential sector.

First-quarter operating profit before items affecting comparability at the company rose to 3.19 billion crowns ($380.3 million) from 2.75 billion a year earlier, beating a mean forecast of 3.07 billion, according to Refinitiv data.

Quarterly organic, or like-for-like, sales growth came in at 4%, boosted by 11% growth in Entrance Systems, its biggest division. Sales fell organically by 5% in the previous quarter and by 3% in the year-ago quarter.

However, Assa said market conditions for parts of its Global Technologies division, which in part supplies industries hard hit by the pandemic, such as hotels, were still "very challenging".

"We do not expect the travel-exposed segments to return to pre-pandemic volumes in the near future," Delvaux said.

($1 = 8.3881 Swedish crowns)

(Reporting by Helena Soderpalm; editing by Niklas Pollard and David Evans)

By Helena Soderpalm

ę Reuters 2021
Latest news "Economy & Forex"
02:17pU.s. cdc says 149,125,164 individuals have been fully vaccinated against covid-19 as of june 19 vs 148,459,003 individuals as of june 18
02:16pU.s. cdc says 176,737,141 individuals have received at least one dose of covid-19 vaccine as of june 19 vs 176,290,249 individuals as of june 18
02:14pWest African regional bloc adopts new plan to launch single currency in 2027
02:14pU.s. cdc says administered 317,117,797 doses of covid-19 vaccine as of june 19 vs 316,048,776 doses administered as of june 18
02:12pU.s. cdc says delivered 379,003,410 doses of covid-19 vaccine as of june 19 vs 377,935,390 doses delivered as of june 18
01:53pBritain's Morrisons says rejected CD&R takeover proposal
01:43pBCIE BANCO CENTROAMERICANO DE INTEGRACIÓNá : More than 327,000 Salvadorans will benefit from new road investment approved by CABEI
01:33pWest African regional bloc adopts new plan to launch single currency in 2027
01:31pNEWSMAKER-Winner of Iran presidency is hardline judge who is under U.S. sanctions
12:36pPrivate equity firm CD&R weighs offer for UK supermarket Morrisons
Latest news "Economy & Forex"