Assa Abloy Q3 profit rises, margin hits decade high amid mixed demand

Swedish lockmaker Assa Abloy AB on Tuesday reported a 3% rise in third-quarter operating profit and its highest quarterly margin in a decade, as growth from acquisitions and solid demand in most regions offset currency headwinds and a sales decline in China.

The world's largest lock manufacturer said its operating profit rose to 6.42 billion Swedish kronor from 6.26 billion kronor a year earlier.

The operating margin widened to 16.8%, which the company described as its best in ten years, supported by cost savings and growth in higher-margin business areas.

Net sales increased 2% to 38.15 billion kronor, as 3% organic growth and a 5% contribution from acquisitions were dampened by a 6% negative impact from foreign exchange rates, the company said.

"I am pleased to report strong results in a market that remains mixed," Chief Executive Nico Delvaux said in a statement.

The company saw sales growth in Europe and the Americas, but sales in the Asia Pacific region fell 4%, dragged down by a significant decline in China.

Assa Abloy, which continues to expand through acquisitions, completed five deals during the quarter with combined annual sales of about 500 million kronor.