ASSA ABLOY UNSP/ADR - ASAZY STOCK NEWS

ASSA ABLOY reported a 19% increase in net sales for Q2 2021, reaching SEK 23,648 M, driven by 23% organic growth. Operating income surged 71% to SEK 3,589 M, with an operating margin of 15.2%. Net income rose by 129% to SEK 3,212 M, and earnings per share jumped to SEK 2.89. The company also signed four acquisitions, enhancing growth prospects. Despite challenges from rising raw material costs, effective price adjustments were implemented.

ASSA ABLOY has agreed to sell its Nordic locksmith business, CERTEGO, to Nalka Invest, focusing on its core security solutions. With approximately 1,200 employees and around 70 locations in Sweden, Finland, Norway, and Denmark, CERTEGO generates about SEK 1.5 billion in external sales. The divestment aims to enhance ASSA ABLOY's operating margin but will incur a capital loss of approximately MSEK 200. The transaction is pending regulatory approval and is expected to close in Q3 2021.

ASSA ABLOY has announced an agreement to acquire MR Group's hardware division, a top supplier of aluminum profile hardware and locks based in Portugal. This acquisition aligns with ASSA ABLOY's strategy to enhance its position in mature markets by expanding its product portfolio and improving regional reach. The transaction, which will be accretive to earnings per share from the start, involves around 380 employees and had 2020 sales of approximately 23 MEUR (around 230 MSEK). The deal awaits regulatory approval and is expected to finalize in Q3 2021.

ASSA ABLOY has announced the acquisition of Sure-Loc, a prominent supplier of residential locks in the US, in a move aimed at enhancing its product offerings. Established in 2002 and headquartered in Salt Lake City, Sure-Loc reported sales of approximately 14 MUSD in 2020 with a healthy EBIT margin. This acquisition aligns with ASSA ABLOY's strategy to strengthen its position in mature markets and is projected to be accretive to earnings per share (EPS) from the outset. The new addition supports ASSA ABLOY's ambition to expand its residential business in the US.

ASSA ABLOY has made a strategic investment in Paravision, a top facial recognition provider, as part of a MUSD 23 funding round. This collaboration is aimed at enhancing biometric solutions, aligning with HID Global's goal to integrate facial recognition into secure identity verification applications. The investment reflects ASSA ABLOY's commitment to innovate in access solutions, with the company generating SEK 88 billion in sales and employing 48,000 individuals globally.

ASSA ABLOY held its Annual General Meeting on April 28, 2021, in a virtual format due to Covid-19. Key resolutions included the adoption of the 2020 financial statements and the approval of a SEK 3.90 dividend per share, payable in two installments. The board of directors was re-elected, with Lars Renström as Chairman. The meeting authorized the buyback of up to 10% of Series B shares and implemented a long-term incentive program for key employees. The total remuneration for the board was set at SEK 8.5 million.

In the first quarter of 2021, ASSA ABLOY reported a 2% decline in net sales to SEK 21,805 M, despite 4% organic growth. The company experienced strong growth in the Asia Pacific region and Entrance Systems, but Global Technologies saw a notable sales decline. Operating income (EBIT) increased by 16% to SEK 3,187 M, with an operating margin of 14.6%. Additionally, net income rose to SEK 2,253 M, while operating cash flow surged 118%.

ASSA ABLOY AB (Reg. No. 556059-3575) announced its Annual General Meeting (AGM) set for April 28, 2021, to be conducted via postal voting due to the Covid-19 pandemic. Shareholders must register by April 20, 2021, and submit their advance votes by April 27, 2021. Key agenda items include a proposed dividend of SEK 3.90 per share, election of Board members including a raise in fees, and the approval of a long-term incentive program for senior executives. The total shares outstanding are approximately 1.11 billion, with key proposals requiring at least two-thirds approval.