Strong recovery in the quarter
Third quarter
· Net sales decreased by 8% to
· Entrance Systems reported organic sales growth, while EMEA reported stable organic sales development. Global Technologies,
· Sales and income for agta record are fully consolidated into the Group from
· Operating income (EBIT[1])[ ]decreased by 8% to
· Net income[1][ ]amounted to
· Earnings per share[1][ ]amounted to
· Operating cash flow amounted to
· The Board of Directors proposes a second dividend for 2019 of
Sales and income
[][][][][][]
Third quarter January-September
2019 2020 Δ 2019 2020 Δ
Sales, SEK M 24,034 22,225 -8% 69,082 64,351 -7%
Of which:
Organic growth 807 -1,043 -5% 2,505 -6,001 -9%
Acquisitions and 825 816 4% 2,303 2,118 3%
divestments
Exchange-rate 1,211 -1,581 -7% 3,393 -849 -1%
effects
Operating income 3,894 3,593 -8% 10,873 8,441 -22%
(EBIT)[1], SEK M
Operating margin 16.7% 16.8% 16.2% 13.8%
(EBITA)[1], %
Operating margin 16.2% 16.2% 15.7% 13.1%
(EBIT)[1], %
Income before 3,645 3,417 -6% 10,104 7,828 -23%
tax[1], SEK M
Net income[1], 2,697 2,528 -6% 7,477 5,792 -23%
SEK M
Operating cash 4,401 4,407 0% 9,208 9,031 -2%
flow, SEK M
Earnings per 2.43 2.28 -6% 6.73 5.21 -23%
share[1], SEK
[1 ]Excluding non-cash operating income in Q3 2020 from revaluation at fair value of 39% ownership in agta record (a shareholding in associates), totaling
Comments by the President and CEO
Strong recovery in the quarter
The outbreak of Covid-19 has impacted our lives and how we do business. I am pleased that all our efforts have resulted in a significantly improved result compared to the previous quarter. Compared to the same quarter last year, our organic growth declined by 5%, currency effects were negative at -7%, while acquired growth was positive at 4%. Total sales declined by 8%. But the quarter has seen a strong recovery in all divisions (especially in EMEA), with the slowest recovery in Global Technologies which continues to be affected by Covid-19 in its main customer segments.
Operating income, including divestment gains of
Strong performance in a difficult world
The quarter continued to be impacted by Covid-19, but most of our important markets showed good recovery. In particular, the markets in
We have continued to implement significant cost-saving measures with a focus on long-term cost reductions. This unfortunately means we had to reduce the number of employees in the Group and we are cutting costs in all areas except product development and strategic growth areas. In total, these actions have reduced our SG&A and conversion expenditures by around
Covid-19 is continuing to impact our business negatively and we will therefore continue to focus on cost measures, while also investing in growth initiatives that can compensate for the sales declines caused by Covid-19.
Finally, I would like to announce that we are launching a new sustainability program with ambitious targets for 2025 and that we are committing to the science-based targets climate initiative, which aligns us with the Paris Agreement. This demonstrates our desire to lead our industry towards a more sustainable future, and will further improve our competitiveness through sustainable products, solutions and operations.
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
at 09.30 on
which can be followed on the Internet at www.assaabloy.com.
It is possible to submit questions by telephone on:
+46 8-505 583 54, +44 333 300 9034 or +1 646 722 4957
This information is information that
https://news.cision.com/assa-abloy/r/quarterly-report-q3-2020,c3219544
https://mb.cision.com/Main/7333/3219544/1321596.pdf
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