ASSA ABLOY UNSP/ADR - ASAZY STOCK NEWS

ASSA ABLOY reported strong financial results for the first quarter of 2023, with net sales increasing 22% to SEK 32,391 million. Organic growth was at 8%, and acquisitions contributed an additional 5%. The company signed four acquisitions with a combined annual sales of approximately SEK 440 million.

Operating income rose 30% to SEK 5,186 million, yielding an operating margin of 16.0%. Net income also saw a significant increase, reaching SEK 3,692 million, and earnings per share were reported at SEK 3.32. The strong cash flow of SEK 4,069 million sets a record for the first quarter.

However, the company has launched a new Manufacturing Footprint Program, involving a restructuring cost of SEK 1,225 million, expected to enhance operational efficiency.

ASSA ABLOY AB has scheduled its Annual General Meeting (AGM) for April 26, 2023, at Stockholm Waterfront Congress Centre. Shareholders must be recorded in the share register by April 18, 2023, and notify their attendance by April 20, 2023. The agenda includes adoption of the Annual Report and dividend proposal of SEK 4.80 per share, payable in two installments. Key leadership changes are proposed, including Johan Hjertonsson as new Chairman of the Board. The company also aims to implement a long-term incentive program for up to 150 senior executives, contingent on share ownership. The meeting will address financial approvals and governance matters.

ASSA ABLOY, a leader in access solutions, has released its Annual Report for 2022, showcasing its global operations with 52,000 employees and sales of SEK 121 billion. The report highlights the Group's strengths in effective door openings, trusted identities, and entrance automation. It signifies the company's commitment to innovation and enhancing safety in accessing physical and digital spaces. More details are available on the company’s investor relations webpage.

ASSA ABLOY has acquired Janam Technologies, a US-based provider of handheld mobile computers and readers, enhancing its event access portfolio with advanced scanning technology. The acquisition, announced on December 27, 2022, is expected to contribute to earnings per share (EPS) immediately. Janam reported sales of approximately MUSD 21 in 2021 and operates within HID's Identification Technologies Business Area. This strategic move aims to leverage Janam's technology to improve the event experience for users worldwide.

ASSA ABLOY has finalized binding agreements with Fortune Brands Home & Security, Inc. for the sale of Emtek and its Smart Residential business in the U.S. and Canada. This $800 million divestiture is aimed at addressing competitive concerns raised by the U.S. Department of Justice regarding ASSA ABLOY's $4.3 billion acquisition of Spectrum Brands' Hardware and Home Improvement division. The sale is expected to close in Q2 2023, contingent upon successful defense against DOJ objections. The divested businesses generated about $350 million in sales in 2021.

ASSA ABLOY has received validation from the Science Based Targets initiative (SBTi) for its greenhouse gas emission reduction targets. The company aims to halve absolute emissions by 2030, reaching net-zero by 2050. SBTi's endorsement confirms that these goals align with the Paris Climate Agreement. ASSA ABLOY plans to cut Scope 1 and 2 emissions by 50% and reduce its wider value chain emissions (Scope 3) by 28%. The company emphasizes the importance of sustainability for future economic growth.

ASSA ABLOY held its Capital Markets Day in London on November 16, 2022, outlining its strategic direction and reaffirming financial targets of an EBIT-margin of 16-17% and annual sales growth of 10%. The event featured presentations on mobile credentials and profitable growth opportunities, with key executives participating. No detailed outlook was provided, but the company emphasized ongoing efforts in expanding its market presence. ASSA ABLOY operates globally with 51,000 employees and sales of SEK 95 billion.

ASSA ABLOY has announced the formation of its Nomination Committee for the 2023 Annual General Meeting, set for April 26, 2023, in Stockholm, Sweden. The committee is chaired by Anders Mörck from Investment AB Latour, with members including representatives from Melker Schörling AB, Swedbank Robur Fonder, CBNY-Norges Bank, and Alecta. This committee will prepare proposals regarding the election of board members and remuneration, among other responsibilities. Shareholders can submit proposals via email to the Nomination Committee.