(Reuters) – Lockmaker Assa Abloy on Wednesday reported higher first-quarter operating earnings and said it was well-positioned to adapt to changing market conditions thanks to a strong local presence in its markets amid the escalating trade war.
The Swedish group will continue to prioritise growth opportunities, though it will also take cost saving actions where needed, it said.
Assa Abloy’s quarterly operating profit, excluding items affecting comparability, rose 4% to 5.65 billion Swedish crowns ($591.1 million), sending its shares rising 2.2% in early trade in Stockholm.
The company, which has been suffering for many quarters from China’s weak real estate market, said its sales in the Asia Pacific region fell 5% on an organic basis, as weak demand in China continued to weigh on the business.
Organic group sales increased by 2%. On a reported basis, which is boosted by recent acquisitions, the growth was 8%.
The company said organic sales growth was strong in the Global Technologies segment and stable in the Entrance Systems, which both operate globally. In the regional divisions, the Americas unit showed good growth while the EMEIA region, consisting of Europe, Middle East, India and Africa, saw flat organic sales.
In EMEIA, strong growth in Central Europe and the Nordics was offset by sales declines in Southern Europe and the Middle East, it said.
Assa Abloy’s main markets are in North America, Europe and Oceania. It does not report separate results for these regions.
($1 = 9.5586 Swedish crowns)
(Reporting by Elviira Luoma in Gdansk, editing by Milla Nissi)
