Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

ASSA ABLOY Reports One-off Costs in Second Quarter Earnings

ASSA ABLOY reports one-off non-cash costs of SEK -6,000 M in the second quarter, related to its Chinese operations in the Asia Pacific Division. One-off costs of SEK -5,600 M are attributable to impairment of goodwill and other intangible assets, while SEK -400 M is related to write-downs of operating assets.

“The one-off costs reflect the continued challenging market conditions for new projects in China. In our updated China strategic review, we expect continued weak earnings in the short- and medium term in the Chinese market. The impairment of intangible assets in earlier Chinese acquisitions and write-downs of operating assets in some of our Chinese business units, reflect the continued challenging market conditions. However, we remain firmly committed to our Chinese operations, and believe in the long-term earnings potential of this market. We are currently launching new initiatives with a dedicated organization for our different market channels and different brands, focusing on new sales and replacement market,” says Nico Delvaux, President and CEO of ASSA ABLOY.

In the second quarter of 2018, ASSA ABLOY Group’s sales increased by 9% to SEK 21,140 M (19,387). Organic sales growth was 5% (2). Adjusted operating profit, EBIT, excluding the announced one-off costs, amounted to SEK 3,311 M (3,114) corresponding to an adjusted operating margin of 15.7% (16.1).

All numbers are preliminary and unaudited.

A conference call will be held at 9:00 am (CET), today Friday July 6. During the conference call, ASSA ABLOY´s President and CEO Nico Delvaux and CFO Carolina Dybeck Happe will describe the situation and respond to questions related to this press release.

Listen to the reply of the conference call via ASSA ABLOYs website: https://www.assaabloy.com/en/com/investors/

All other information related to the second quarter will be published in the quarterly report on 18 July.

This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.15 CEST on 6 July 2018.