By Elviira Luoma and Jesus Calero
(Reuters) – The world’s biggest lockmaker Assa Abloy reported a smaller-than-expected rise in fourth-quarter operating profit on Wednesday, as like-for-like sales growth ground to a halt amid slow residential markets.
The Swedish group’s quarterly operating profit, excluding items affecting comparability, increased 11% from a year earlier to 5.72 billion Swedish crowns ($545.5 million).
Analysts polled by LSEG had expected a profit of 5.77 billion crowns.
The shares were down 3% in early trading.
The rival to Allegion and Stanley Black & Decker said its organic, or like-for-like, sales were flat in the fourth quarter.
On a reported basis, sales increased by 12% to 36.97 billion crowns.
Assa, whose products range from security doors and automated entrance solutions to electronic and mechanical locks under brands such as Yale, said organic sales fell in the Asia-Pacific and Europe, Middle East, India and Africa (EMEIA) regions.
The Americas region, where Assa acquired Spectrum Brands’ Hardware and Home Improvement (HII) division last June, recorded 5% like-for-like growth driven by continued good demand in non-residential business.
“In the fourth quarter, and despite lower volumes, we delivered an operating margin, excluding the HHI transaction, of 16.8%, within our target range,” said CEO Nico Delvaux in a statement.
Assa said it planned to pay out a dividend of 5.40 crowns per share for 2023, up from 4.80 crowns a year earlier and higher than the 5.17 crowns seen by analysts.
($1 = 10.4866 Swedish crowns)
(Reporting by Elviira Luoma and Jesus Calero in Gdansk; Editing by Milla Nissi and Mark Potter)
