Assa Abloy Adr Stock Price, News & Analysis

ASSA ABLOY has received validation from the Science Based Targets initiative (SBTi) for its greenhouse gas emission reduction targets. The company aims to halve absolute emissions by 2030, reaching net-zero by 2050. SBTi's endorsement confirms that these goals align with the Paris Climate Agreement. ASSA ABLOY plans to cut Scope 1 and 2 emissions by 50% and reduce its wider value chain emissions (Scope 3) by 28%. The company emphasizes the importance of sustainability for future economic growth.

ASSA ABLOY held its Capital Markets Day in London on November 16, 2022, outlining its strategic direction and reaffirming financial targets of an EBIT-margin of 16-17% and annual sales growth of 10%. The event featured presentations on mobile credentials and profitable growth opportunities, with key executives participating. No detailed outlook was provided, but the company emphasized ongoing efforts in expanding its market presence. ASSA ABLOY operates globally with 51,000 employees and sales of SEK 95 billion.

ASSA ABLOY has announced the formation of its Nomination Committee for the 2023 Annual General Meeting, set for April 26, 2023, in Stockholm, Sweden. The committee is chaired by Anders Mörck from Investment AB Latour, with members including representatives from Melker Schörling AB, Swedbank Robur Fonder, CBNY-Norges Bank, and Alecta. This committee will prepare proposals regarding the election of board members and remuneration, among other responsibilities. Shareholders can submit proposals via email to the Nomination Committee.

ASSA ABLOY reported a strong performance in Q3 2022, achieving net sales of SEK 31,820 M, a 33% increase from SEK 23,930 M in Q3 2021. Organic growth reached 14%, despite a 16% negative impact from exchange rates. Operating income (EBIT) rose by 47% to SEK 4,973 M, with an operating margin of 15.6%. Net income was SEK 3,552 M, up 48% year-over-year. Six acquisitions were signed, contributing to future growth. However, the U.S. Department of Justice plans to block its acquisition of Spectrum Brands' HHI division, which will be contested in court.

ASSA ABLOY has acquired Bird Home Automation GmbH, the German manufacturer of IP door intercoms, for single and multi-family buildings. The acquisition aims to enhance ASSA ABLOY's offering in the Smart Residential segment, supporting growth and innovation in home security. With 110 employees and sales of approximately MEUR 21 in 2021, DoorBird is expected to contribute positively to ASSA ABLOY's earnings per share (EPS) from the outset, reinforcing its strategic position in residential security.

ASSA ABLOY announced its intent to contest the U.S. Department of Justice's (DOJ) move to block its acquisition of the HHI division of Spectrum Brands (NYSE:SPB) for MUSD 4,300. The companies assert that the merger will bolster investment in residential segments and enhance their product offerings. ASSA ABLOY's CEO, Nico Delvaux, emphasizes the expected innovation and consumer benefits from the merger. The acquisition agreement has been extended to June 30, 2023, as both parties remain committed to overcoming regulatory challenges.

ASSA ABLOY has signed an agreement to acquire Control iD, a Brazilian developer of access control and time & attendance solutions. This strategic move enhances ASSA ABLOY's biometric offerings, particularly in facial recognition technology, reinforcing its market position in emerging markets. Control iD generated sales of approximately MBRL 130 (approx. MSEK 250) in 2021 with a strong EBIT margin. The acquisition is expected to be accretive to earnings per share from the outset and is set to close in Q4 2022, pending regulatory approval.

ASSA ABLOY has signed an agreement to acquire VHS Plastik Metal, a prominent Turkish manufacturer of window and door hardware systems. This strategic acquisition aims to enhance ASSA ABLOY's market leadership in emerging markets, particularly in Turkey. With approximately 440 employees, VHS generated sales of around MTRY 150 million in 2021. The acquisition is expected to be accretive to earnings per share from the start and is anticipated to close in Q4 2022, subject to customary closing conditions.

ASSA ABLOY has updated on its planned acquisition of the HHI division from Spectrum Brands, initially announced on September 8, 2021, for MUSD 4,300. The acquisition's closing, expected in 2022, may extend into 2023 due to ongoing regulatory reviews. Both companies are committed to the deal and optimistic about obtaining necessary governmental clearances. This acquisition is seen as a strategic move to expand ASSA ABLOY's market position in access solutions, which generated SEK 95 billion in sales.