Assa Abloy 1Q Net Profit Beat Forecasts, Expects Ruling on HHI Acquisition in 2Q
By Dominic Chopping
STOCKHOLM--Assa Abloy AB on Wednesday posted a slight drop in first-quarter net profit that still beat forecasts, and said it expects a court ruling on its bid to buy the HHI division of Spectrum Brands Holdings Inc. in the second quarter.
The Swedish lock maker said net profit for the period slipped to 2.71 billion Swedish kronor ($262.9 million) from SEK2.86 billion a year earlier as sales rose 22% to SEK32.39 billion.
A FactSet consensus had forecast quarterly profit of SEK2.64 billion on sales of SEK31.32 billion.
The adjusted earnings before interest and tax margin rose to 16.0% from 15.0%.
"The macroeconomic environment remains uncertain with some key performance indicators indicating a slowdown," Chief Executive Nico Delvaux said.
"Although we continue to report strong results, we are prepared and have the agility to mitigate further changes in the demand and if necessary we are ready to implement additional cost reductions, to protect our profitability and cash flow."
The company said it launched the previously planned manufacturing footprint program at the end of the first quarter. The expected cost for the new program is SEK1.23 billion, with a pay-back time, including capital expenditure, of around two years.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
April 26, 2023 02:49 ET (06:49 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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