20% - Assa Abloy

ASSA ABLOY
Annual Report 2007
52
Sales and earnings
• Organic growth for comparable units was 7 percent (9),
while acquired growth was 5 percent (3).
• Operating income (EBIT) increased by 14 percent to SEK
5,458 M (4,771 1 ), equivalent to an operating margin of
16.3 percent (15.3 1 ).
• Earnings per share increased by 13 percent to SEK 9.02
(7.99 1 ).
Sales
The Group’s sales rose to SEK 33,550 M (31,137).
Exchange rates had a negative impact of SEK 1,131 M on
sales, compared with 2006.
Change in sales
% 2006 2007
Organic growth 9 7
Acquired growth 3 5
Exchange-rate effects 0 –4
Total 12 8
Sales rose by 12 percent in local currency, of which organic
growth for comparable units accounted for 7 percent (9)
and acquired units made a positive contribution of 5 percent
(3).
Sales by product group
% 2006 2007
Mechanical locks,
lock systems and accessories 51 48
Electromechanical and electronic locks 31 33
Security doors and fittings 18 19
Mechanical locks, lock systems and accessories accounted
for 48 percent (51) of sales. Sales of electromechanical and
electronic locks rose to 33 percent (31), while security
doors and fittings accounted for 19 percent (18) of sales.
Cost structure
Total wage costs, including social security expenses and
pension expenses, amounted to SEK 10,066 M (9,374),
corresponding to 30 percent (30) of sales. The average
number of employees was 32,267 (31,243).
The average number of employees in the Parent
company was 98 (96).
The Group’s material costs totaled SEK 10,721 M (9,561),
corresponding to 32 percent (31) of sales. This increase
was mainly due to the increased costs of raw materials.
Other purchasing costs totaled SEK 6,424 M (6,532),
corresponding to 19 percent (21) of sales.
Depreciation and write-down of fixed assets amounted
to SEK 910 M (1,039), corresponding to 3 percent (3) of
sales.
Operating income
Operating income (EBIT) amounted to SEK 5,458 M
(4,771 1 ) after negative exchange-rate effects of SEK 203 M.
The corresponding operating margin was 16.3 percent
(15.3 1 ).
Operating income before depreciation and amortization
(EBITDA) amounted to SEK 6,366 M (5,669 1 ). The
corresponding margin was 19.0 percent (18.2 1 ).
Income before tax
Income before tax totaled SEK 4,609 M (2,626), an increase
of 76 percent compared with the previous year. Negative
exchange-rate effects amounted to SEK 182 M. Net financial
items amounted to SEK –849 M (–671). This increase
was mainly due to increased net debt and a one-off cost of
SEK 75 M in the last quarter. The one-off cost related to an
impairment loss for an external development project, in
which ASSA ABLOY took part as one of several financiers.
The profit margin – defined as income before tax in relation
to sales – was 13.7 percent (8.4).
The Parent company’s income before tax amounted to
SEK 2,351 M (1,047).
Tax
The Group’s tax expense totaled SEK 1,240 M (870), corresponding
to an effective tax rate of 27 percent (33). The
reduction in the effective tax rate was due to the previous
year’s abnormally high tax rate, which was a result of
deferred tax on certain restructuring costs not being taken
into account.
Earnings per share
Earnings per share amounted to SEK 9.02 (7.99 1 ), an
increase of 13 percent.
1 Excluding restructuring costs.