ASSA ABLOY: Strong Earnings Growth 1999.Business Editors STOCKHOLM, Sweden--(Business Wire)--Feb. 9, 2000 The ASSA ABLOY The ASSA ABLOY Group is a Swedish company. The group is the world's leading manufacturer and supplier of locks. ASSA ABLOY was formed in 1994 when ASSA Ab was detached from Swedish security firm Securitas AB. Group, the world's leading manufacturer and supplier of locks and associated products In the context of fuels and lubricants, a petroleum or chemical product used as a hydraulic fluid, corrosion preventive, liquid propellant, or specialized product, required for the operation, maintenance, or storage of military equipment. today released its report for the full calendar year 1999. The report shows a continues strong growth: - Sales increased by 20% to SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 10,277 M (8,582) - Income before taxes increased by 31% to SEK 981 M (748) - Earnings per share increased by 26% to 2:25 (1:78) - Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. amounted to SEK 1,218 M (1,028) - Cash earnings per share (CEPS CEPS Centre for European Policy Studies CEPS Customs, Excise and Preventive Service (Ghana) CEPS Color Electronic Prepress CEPS Common Electronic Purse Specification (open standard for electronic purse smartcards) ) increased by 15% to 4:38 (3:80) - The organic sales growth for comparable units amounted to 5% (6%) - Acquisition of Mul-T-Lock, Israel's leading lock manufacturer Sales and Income January-December, 1999 Sales during the period January-December 1999 translated to US dollars amounted to about 1,265 b US $ or to SEK 10,277 M (8,582), an increase of 20%. The increase amounts to 18% in local currencies. The organic growth for comparable units amounted to 5% (6%). Acquisitions represent 13% of sales growth during the year. The Group's income before taxes increased by 31% to SEK 981 M (748). Exchange rate changes have had a positive effect of SEK 33 M when translating the subsidiaries' income to SEK. Earnings per share after tax and full conversion increased by 26% to 2:25 (1:78). Operating cash flow (before taxes and acquisitions) amounted to SEK 1,218 M (1,028). CEPS after tax and full conversion increased by 15% to 4:38 (3:80). Development of the Subsidiaries The Scandinavian units have shown good growth during the year with organic growth of 6%. The Finnish units ended the year strong after a weak beginning affected by the significant drop in sales to Russia. The fourth quarter was particularly positive with an increase in sales of over 20% and for the year in total organic growth amounts to 5%. Electromechanical The use of electricity to run moving parts. Disk drives, printers and motors are examples. Electromechanical systems must be designed for the eventual deterioration of moving components that wear over time. The first TVs were electromechanical systems (see video/TV history). products, of which most of the volume is exported, show the fastest growth. The German units show stable development and an increase in demand at the end of the year can be noted. Effeff has developed better than expected in both volume and income. The integration work within the French units is successful including rationalizations and close down of loss-making products and export activities, affecting sales negatively with FRF FRF The ISO 4217 currency code for the French Franc. 25 M. The UK units' growth increased towards the end of the year with sales in level with last year. The North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. units continue to show good growth. The fourth quarter was somewhat weaker than the previous quarters, partly due to the strong ending of 1998. All units are increasing their income. Sales in Canada have increased considerably during the year. Arrow's Canadian distributor was acquired during the fourth quarter and will strengthen ASSA ABLOY's position even further. Scovill in Mexico has also developed well and has taken over the production of certain Arrow products. VingCard's sales are almost in line with last year's. Sales in Europe, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the marine segment continues to show strong growth while sales in Asia have dropped considerably due to decrease of new construction. The integration work within Lockwood is proceeding very well. Company management has quickly taken advantage of being a part of the ASSA ABLOY Group, by learning from the best and by launching several Group products. Income develops faster than expected. Growth in the new markets is good and amounts to 26%. Asia is moving quickly forward and sales in China have increased threefold. Poland shows a good growth rate and the Czech company FAB A manufacturing plant that makes semiconductor devices. As of 2005, the top 10 semiconductor companies worldwide based on sales and ranked starting with the largest were Intel, Samsung, Renesas (Hitachi-Mitsubishi merger), Texas Instruments, Toshiba, Infineon, STMicroelectronics, NEC, has now, apart from already being Skoda's sole supplier of car locks, been approved as supplier of car locks to the entire Volkswagen-group. Expectations for 2000 There are significant opportunities for ASSA ABLOY. The strong position, the security driven growth, the potential for further rationalization rationalization, in psychology: see defense mechanism. and a consolidation of the lock business creates opportunities for a continuous good profit growth. A full report can be obtained from our web-page www.assaabloy.se |
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