Lockmaker Assa Abloy boosts dividend, but wary on outlook
Reuters
Published Feb 03, 2023 07:29
Updated Feb 03, 2023 08:15
STOCKHOLM (Reuters) -Assa Abloy, the world's biggest lockmaker, raised its dividend more than expected as it met quarterly profit forecasts on Friday, signalling its confidence even as it braces for an uncertain economic outlook.
The Swedish group reported a 28% increase in fourth-quarter operating profit to 5.15 billion Swedish crowns ($49.62 billion) from 4.01 billion a year-earlier. Analysts polled by Refinitiv had on average expected a profit of 5.16 billion crowns.
The company, whose products range from security doors and automated entrance solutions to electronic and mechanical locks, proposed a dividend of 4.80 crowns per share for 2022, up from 4.20 crowns a year earlier and above the 4.66 crowns seen by analysts.
Assa has in recent quarters cut costs as slowing demand, supply chain problems and semiconductor shortages have continued to hamper its business.
In the fourth quarter, a recovery in activity among travel-related customers and continued very strong demand in the U.S. non-residential market helped boost sales.
However, Chief Executive Nico Delvaux warned of continued uncertainty after a year of supply chain challenges, high inflation and COVID-19-related disruptions.
"Since the macroeconomic environment continues to be uncertain, we have prepared ourselves to mitigate any possible negative changes in the demand and to reduce our cost-base throughout the organization," he said in a statement.
Assa, whose rivals include Allegion and Stanley Black & Decker, said organic, or like-for-like, sales rose 9% in the quarter as sales increased to 32.92 billion crowns.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.