World’s largest lock manufacturer Assa Abloy Group (OMX: ASSA B) is up nicely after showing solid progress in Q2. Organic sales growth of 5% and acquired growth of 20% were partially offset by currency effects to make up for overall sales growth of 12%.Second quarter operating income of 1.6 billion meant a slightly lower operating margin of 15.4% as compared to Q2 of 2010.
With the sale of Lorentzen & Wettre to ABB (OMX: ABB), Assa Abloy now considers Cardo transaction to be complete. The parts of the former Cardo Entrance Solutions that do not fit Assa Abloy’s portfolio have gotten new industrial owners. The integration of Crawford Doors & Docking solutions is going promisingly. The net price for Cardo Group doors unit becomes 4.3 billion SEK when all the divested parts and net cash are taken out from the public offer price of 11.3 billion for the entire Cardo Group. Cardo was delisted from NASDAQ OMX Stockholm in April as a result of the takeover.
Assa Abloy is consolidating core production to China and Eastern Europe. Assa Abloy expects increase in security-driven demand long term with good development in EBIT and in operating cash flow. New virtual and remote products are being well accepted in the market. More information is available here.
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