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.-
After Earnings, Is Berkshire Hathaway Stock a Buy, a Sell, or Fairly Valued?
-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
What’s Happening In the Markets This Week
-
How the Tokyo Stock Exchange Is Pushing for Better Shareholder Returns
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Where We See Opportunities After an Ugly Month for Stocks
-
After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
-
When Will the Fed Start Cutting Interest Rates?
-
Berkshire Hathaway Earnings: Strong Insurance Results Continue to Lift Revenue and Profitability
-
10 Questions for Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Ford Stock a Buy, a Sell, or Fairly Valued?
-
3 Dividend Stocks for May 2024
-
Amgen Earnings: Obesity Drug Update Is Highly Encouraging
-
What’s Going on With Apple, Tesla, and Alphabet?
-
Apple Earnings: A Weak 2024, but Optimism for 2025
-
4 Utility Stocks to Play the AI Data Center Boom