Finance
Assa Abloy to hike prices if US implements tariffs on Canada and Mexico, CEO says
Published by Global Banking and Finance Review
Posted on February 5, 2025
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Published by Global Banking and Finance Review
Posted on February 5, 2025
By Elviira Luoma
(Reuters) - Sweden's Assa Abloy plans to raise its prices if U.S. President Donald Trump moves ahead with the tariffs on Canada and Mexico, the CEO of the world's biggest lockmaker said on Wednesday.
Trump on Monday paused his threat of 25% tariffs on Mexico and Canada for 30 days, while his additional 10% tariff across all Chinese imports into the U.S. came into effect on Tuesday.
The rival to Allegion and Stanley Black & Decker is increasing its inventory in the U.S., CEO Nico Delvaux told Reuters, and added that if the paused duties were carried out, it would seek to compensate for them also through higher prices.
"We are the market leader for most of the things we do in the U.S.," Delvaux said. "Therefore we also have to play the role of being the first one to come with price increases and we are confident that our colleagues in the market ... will follow those price increases."
Assa Abloy, whose products range from security doors to electronic and mechanical locks under brands such as Yale, also said on Wednesday that very weak demand in China continued to weigh on its Asia Pacific business in the fourth quarter.
The company, which has been suffering for many quarters due to China's weak real estate market, said organic sales in the Asia Pacific segment fell 11% in the quarter, while they were little changed on a group level.
However, Assa Abloy sees very good momentum in its main markets — North America, Europe and Oceania — where commercial activity remains at a very high level, Delvaux said.
On a reported basis, the company's sales grew by 7% in the fourth quarter, boosted by recent acquisitions. It made eight acquisitions in the final quarter and 26 overall during 2024.
Quarterly operating profit, excluding items affecting comparability, rose 14% to 6.53 billion Swedish crowns ($595.4 million) in the quarter.
The company's shares were down 1.7% by 1235 GMT.
($1 = 10.9683 Swedish crowns)
(Reporting by Elviira Luoma in Gdansk, editing by Milla Nissi)