ASSA ABLOY Says Commercial Strong Though Residential Remains Challenging.
ASSA ABLOY Says Commercial Strong – ASSA ABLOY has reported strong performance in the commercial sector but said the residential market remains challenging.
ASSA ABLOY made 6 acquisitions in the quarter, 2 in South America where its business has grown 17 per cent in part through an HID Citizen ID order. Management attributed 11 per cent of its growth to these acquisitions.
“The same is true for Africa, where we are plus 28 per cent,” said ASSA ABLOY president and CEO Nico Delvaux. “Again, this is mainly explained by a bigger Citizen ID project for HID.”
The company had a number of other big wins in 2023, including contracts for HID to provide Finland with new high-security driver’s license cards and personalization service solutions, as well as securing 15 mega water reservoir sites in the Middle East with TESA SMARTair i-Gate.
On the new product front, ASSA ABLOY launched a smart door lock utilizing biometrics with finger vein reading, facial recognition, and digital door view capabilities.
ASSA ABLOY Says Commercial Strong
Delvaux said that despite the lagging residential market, the company had done well overall, and he believed the decline in the residential sector is bottoming out and will rebound soon.
“In the Americas we had another very strong quarter, with an organic sales growth of 5 per cent, including good growth in our commercial business in North America and good growth in Latin America,” he said.
“Sales declined in U.S. residential but that’s obviously organically now a very small part of our business here. For residential we should look at HHI. And like I mentioned HHI was having an organic growth of minus 1 per cent in the quarter.”
Net sales increased by 12 per cent to around $US3.3 billion, with positive organic growth of 0 per cent and acquired net growth of 11 per cent. Exchange rates affected sales by 1 per cent. Organic sales growth was strong in Americas and good in entrance systems, while organic sales declined in Asia Pacific, EMEIA and Global Technologies.
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“ASSA ABLOY Says Commercial Strong Though Residential Remains Challenging.”
