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Sweden’s Assa Abloy AB on Friday posted a third-quarter net profit that met expectations, but cautioned on market conditions ahead.
The lock maker ASSA.B, +1.19% said net profit in the three months ended September 30 totaled 2.67 billion Swedish kronor ($274 million), up from a profit of SEK2.38 billion in the year-earlier period. Sales in the quarter rose 13% to SEK24.03 billion.
A FactSet consensus had forecast quarterly profit of SEK2.64 billion on sales of SEK23.53 billion.
The adjusted operating margin remained steady at 16.2%.
“Overall, the underlying growth slowed somewhat in the quarter,” said Chief Executive Nico Delvaux.
“As new construction indices continue to trend down in some of our more important markets and geopolitical challenges remain, the market conditions have become more challenging and uncertain.”
During the third quarter Assa Abloy’s restructuring programs generated savings of around SEK200 million.
Due to the high speed of implementation of the most recent program, this level will slow down from the next quarter and in 2020 it expects the savings to be about SEK300 million, it said.
