(News Bulletin 247) – The manufacturer of locks and security systems Assa Abloy fell on the Stockholm Stock Exchange on Wednesday following the publication of quarterly results marked by weaker than expected organic growth.
The Swedish group, which specializes in locks and anti-theft devices in particular, reported operating profit up 25% to 5.5 billion crowns in the second quarter, against a consensus of 5.4 billion.
Its operating margin improved to 16%, compared to 15% a year ago, on the basis of net sales up 17% to 34.5 billion crowns.
Affected by the slowdown in the Asia-Pacific and EMEIA (Europe, Middle East, India, Africa) geographic regions, organic growth nevertheless stood at 3%, a performance that was much worse than expected.
“The lack of dynamism in Europe, but also in the United States where internal growth was lower than expected, overshadows a solid quarter in terms of operational execution”, regrets an analyst who follows the value.
Assa Abloy has also announced the acquisition of French company Evolis, which specializes in graphic personalization and encoding of identification cards, for an amount of 228 million euros.
Following these announcements, the Assa Abloy share lost 1% at the end of the morning, while the Stockholm Stock Exchange yielded less than 0.2%.
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