By Dominic Chopping
STOCKHOLM--Sweden's Assa Abloy AB on Friday posted a bigger-than-expected drop in fourth-quarter net profit, but proposed paying a higher dividend for 2020.
The lock maker said net profit for the three months ended Dec. 31 fell to 1.47 billion Swedish kronor ($174.2 million), from SEK2.52 billion for the year-earlier period. Sales for the quarter fell 6.6% to SEK23.3 billion.
A FactSet consensus had forecast quarterly profit of SEK1.6 billion on sales of SEK23.66 billion.
Operating margin fell to 14.9% from 16.2%, the company said.
Assa Abloy proposed a dividend of SEK3.90, up from SEK3.85.
The new restrictions and lockdowns related to the pandemic put additional pressure on some of the company's customer segments, and continued to affect its global technologies unit in particular, it said.
"The outbreak of the Covid-19 pandemic led to a much weaker and volatile demand in 2020," Chief Executive Nico Delvaux said. "As the vaccine program is rolled out, we expect restrictions to be gradually phased out, trust and mobility to return and demand in general to improve," he said.
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(END) Dow Jones Newswires
February 05, 2021 02:44 ET (07:44 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.