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STOCKHOLM (Reuters) -Assa Abloy, the world’s biggest lockmaker, reported slightly better than expected fourth-quarter profit growth on Friday as stronger demand helped mitigate continued pandemic-related supply chain challenges.
Operating profit grew to 4.01 billion crowns ($441.95 million) from a year-earlier profit of 3.48 billion before restructuring costs. Analysts polled by Refinitiv had on average forecast a 3.87 billion crown profit.
Shares in the Swedish company were up 6% in early trade.
The group said price increases, cost control and sales growth bolstered profits, helping offset record high raw material costs, logistic challenges and component shortages accompanying the global economy’s rapid recovery from coronavirus restrictions.
Assa Abloy (OTC:ASAZY), whose products range from security doors and automated entrance solutions to electronic and mechanical locks under brands such as Yale, said sales excluding acquisitions were up 10%, with particularly strong growth in its Americas division.
“As many restrictions were phased out, the activity level improved,” CEO Nico Delvaux said in the earnings statement.
The rival to Allegion (NYSE:ALLE) and Stanley Black & Decker (NYSE:SWK) proposed a dividend for 2021 of 4.20 crowns per share, up from 3.90 crowns the year before.
($1 = 9.0734 Swedish crowns)
