Results impacted by Covid-19
First quarter
·
Net sales increased by 3% to
·
Growth in
·
Two acquisitions signed with expected combined annual sales of
·
Conditional clearance has been received from the
·
Operating income (EBIT)[ ]decreased by 15% and amounted to
·
Net income[ ]amounted to
·
Earnings per share[ ]amounted to
·
Operating cash flow increased by 3% to
·
The Board of Directors proposes a revised first dividend for 2019 of
Sales and income
[]
+------------------------------------+------+------++---++------+------+----+
| | Full year || ||First quarter| |
+------------------------------------+------+------++---++------+------+----+
| | 2018| 2019|| Δ|| 2019| 2020| Δ|
+------------------------------------+------+------++---++------+------+----+
|Sales, SEK M |84,048|94,029||12%||21,505|22,173| 3%|
+------------------------------------+------+------++---++------+------+----+
|Of which: | | || || | | |
+------------------------------------+------+------++---++------+------+----+
|Organic growth | 3,901| 2,652|| 3%|| 1,006| -759| -3%|
+------------------------------------+------+------++---++------+------+----+
|Acquisitions and divestments | 1,793| 3,063|| 3%|| 689| 648| 3%|
+------------------------------------+------+------++---++------+------+----+
|Exchange-rate effects | 2,217| 4,265|| 6%|| 1,260| 780| 3%|
+------------------------------------+------+------++---++------+------+----+
|Operating income (EBIT)[ 1 2], SEK M|12,909|14,920||16%|| 3,246| 2,751|-15%|
+------------------------------------+------+------++---++------+------+----+
|Operating margin (EBITA)1 2, % | 15.8%| 16.4%|| || 15.6%| 13.0%| |
+------------------------------------+------+------++---++------+------+----+
|Operating margin (EBIT)1 2 , % | 15.4%| 15.9%|| || 15.1%| 12.4%| |
+------------------------------------+------+------++---++------+------+----+
|Income before tax1 2, SEK M |12,110|13,883||15%|| 2,997| 2,519|-16%|
+------------------------------------+------+------++---++------+------+----+
|Net income1 2, SEK M | 8,984|10,243||14%|| 2,218| 1,864|-16%|
+------------------------------------+------+------++---++------+------+----+
|Operating cash flow, SEK M |11,357|14,442||27%|| 1,171| 1,206| 3%|
+------------------------------------+------+------++---++------+------+----+
|Earnings per share1 2, SEK | 8.09| 9.22||14%|| 2.00| 1.68|-16%|
+------------------------------------+------+------++---++------+------+----+
1 Excluding costs for a new manufacturing footprint program launched in 2018, totaling SEK -1,530 M before tax, corresponding to
2 Excluding impairment of goodwill and other intangible assets in Q2 2018, totaling
Comments by the President and CEO
Results impacted by Covid-19
The outbreak of Covid-19 led to a challenging beginning of 2020, which impacted most industries globally, including us. In the first quarter our organic sales growth was negative (-3%), but due to positive currency effects (3%) and net acquired growth (3%), total sales increased by 3%. Organic growth was positive in
Operating income decreased by 15% to
Operating cash flow was solid at
This is a different crisis
The Covid-19 crisis started in February with a significant effect on our operations and demand in
We are addressing the extraordinary situation
Our first priority has been the wellbeing of our employees and we have therefore introduced stringent health and safety measures in our operations.
We have also initiated a number of cost-saving measures such as reduced working hours, temporary and permanent layoffs, travel bans, reducing external services and delaying projects. These measures will not impact our excellent customer support and our ability to ramp our operations up or down, but they will lower our running costs in an important way. To ensure that we are positioned to accelerate growth after this crisis, we have decided to continue investments in product innovation and specialized sales.
Outlook
Assuming that the demand in our core markets will continue to be significantly affected by Covid-19, as experienced in many markets since February, we expect our sales and our operating margin in the coming months to be significantly lower than in the first quarter. However, when demand recovers and with our strong new- product pipeline, we are confident that we will have the ability to further strengthen our position as the global leader in access solutions.
In conclusion, I would like to thank you for your trust in
President and CEO
Further information can be obtained from:
President and CEO, tel. no: +46 8 506 485 82
Erik Pieder,
Executive Vice President and CFO, tel.no: +46 8 506 485 72
It is possible to submit questions by telephone on:
+46 8-566 427 06, +44 333 300 9269 or +1 646 722 4957
This information is information that
https://news.cision.com/assa-abloy/r/quarterly-report-q1-2020,c3099805
https://mb.cision.com/Main/7333/3099805/1238452.pdf
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