STOCKHOLM, Sweden, August 09, 2002 (PRIMEZONE) -- ASSA ABLOY:
-- Sales increased 14% - greater focus on organic growth
-- Income before tax increased 26% from ongoing improvements and
increased Group coordination
-- Operating margin, EBITA increased relative to the first quarter,
to 13.9%
-- Strong operating cash flow, 183% of income, from continued
successful capital rationalization
-- Acquisition of Besam and issue of 10 million shares completed
SEK Second quarter Six months
2002 2001 Change 2002 2001 Change
Sales, million 6,245 5,483 14% 12,549 10,587 19%
Organic growth, % - - 4% - - 2%
EBITA margin, % 13.9 14.0 - 13.8 14.3 -
Income before tax, 484 385 26% 944 765 23%
million
Earnings per share 0.84 0.71 18% 1.65 1.41 17%
(EPS)
EPS excluding 1.48 1.29 15% 2.93 2.56 14%
goodwill
Operating cash 886 532 67% 1,528 825 85%
flow, million
sales and earnings
Sales for the second quarter increased by 14% to SEK 6,245 M. In local currencies the increase amounted to 17%. Acquired units contributed 13% to the increase in volume. Exchange-rate effects affected sales negatively by SEK 185 M compared with the equivalent period last year. Organic growth amounted to 4%. All markets reported a positive trend including the expected "Easter effect," apart from Germany where the market continues to weaken. Sales in the hotel segment have now stabilized but at a lower level than last year's. The previously announced clean-out of non-profitable low-end products in the Yale units continues and will be completed this year.
Sales for the period January to June 2002 totaled SEK 12,549 M, which represents an increase of 19%. Organic growth was 2%. Acquired units contributed 16% to the increase in volume. Exchange-rate affected sales positively by SEK 55 M compared with the equivalent period last year.
The Group's income before tax for the second quarter increased by 26% to SEK 484 M (385). Exchange-rate variations when translating foreign subsidiaries' earnings affected income negatively by SEK 17 M. Operating margin before goodwill amortization (EBITA) was 13.9%. A large number of ongoing integration and rationalization projects in the Group's various companies as well as the growing coordination in areas such as purchasing and production contributes to the improved margins.
The Group's income before tax for the half year increased by 23% to SEK 944 M (765). Exchange-rate variations when translating foreign subsidiaries' earnings had only a marginal effect.
Earnings per share after tax and full conversion amounted to SEK 0.84 (0.71) for the quarter, an increase of 18%. Earnings per share after tax and full conversion but excluding goodwill amortization amounted to SEK 1.48. For the half year, earnings per share after tax and full conversion increased by 17% to SEK 1.65 (1.41) for the quarter, and earnings per share after tax and full conversion but excluding goodwill amortization amounted to SEK 2.93.
Operating cash flow before tax and company acquisitions for the second quarter totaled SEK 886 M (532), which represents 183% of income. Cash flow for the half year was SEK 1,528 M. Programs to shorten lead-times and reduce working capital continues to contribute. The strong cash flow is also an indicator of quality in the reported results and of a consistent application of prudent accounting principles.
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