Swedish lockmaker Assa Abloy AB on Thursday reported a slight rise in second-quarter profit as strong underlying demand and acquisitions were canceled out by unfavorable currency movements that erased its sales growth.
The world's largest lock manufacturer said its operating profit increased 1% to 6.16 billion Swedish kronor, while its operating margin widened to 16.2% from 16.0% a year earlier.
Net sales were essentially flat at 38.02 billion kronor, as 3% organic growth and a 5% contribution from acquisitions were offset by an 8% negative impact from foreign exchange rates, according to the company.
"I am proud of the strong operational execution and strong growth momentum in the quarter where we achieved good organic growth of 3% and strong acquired net growth of 5%, despite challenging market conditions," Chief Executive Nico Delvaux said.
The company said it saw strong growth in its Global Technologies division and good growth in the Americas, fueled by robust demand for electromechanical upgrades in the aftermarket.
However, sales declined organically in its Europe, Middle East, India and Africa (EMEIA) and Asia Pacific divisions, which the company attributed to continued weakness in residential markets.
Assa Abloy, which continues to expand through acquisitions, completed five deals in the quarter with combined annual sales of around 800 million kronor.
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