Assa Abloy 2Q Net Profit Beat as Demand Rebounded, Price Rises Offset Higher Costs

By Dominic Chopping

STOCKHOLM--Sweden's Assa Abloy AB on Monday posted a bigger-than-expected rise in second-quarter net profit as demand rebounded in most markets and price rises offset higher raw material costs.

The lock maker said net profit for the period rose to 3.21 billion Swedish kronor ($369.3 million), from SEK1.4 billion for the year-earlier period. Sales for the quarter rose 19% to SEK23.65 billion.

A FactSet consensus had forecast quarterly profit of SEK2.47 billion on sales of SEK23.11 billion.

Operating margin rose to 15.2% from 10.5%, the company said.

"Demand in many markets has gradually improved and sales, adjusted for currency, are now back to or above pre-Covid levels in Europe, Middle East, India and Africa, Americas and Entrance Systems," Chief Executive Nico Delvaux said.

"We are therefore shifting our focus so as to accelerate our profitable growth," he added.

In Asia Pacific, the recovery is slower due to continued restrictions and lockdowns in many markets, the company said.

Assa Abloy said it has been able to manage the shortage of some components and logistical constraints.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

07-19-21 0242ET