ASSA ABLOY reported a 16% increase in net sales during the third quarter (Q3) of 2023. Officials add in the company’s most recent quarterly analysis that financial sales growth in global technologies was solid, while entrance systems sales remained stable.

Nico Delvaux, ASSA ABLOY president and CEO, says the company’s execution remains strong despite weak residential construction markets.

Nico Delvaux, president and CEO, says the company’s execution remains strong despite weak residential construction markets. He states the push for sustainable solutions and innovation has helped ASSA ABLOY’s financial growth.

“We are part of a good industry with strong long-term growth drivers,” he says. “Two interlinked long-term growth trends are sustainability and digitalization. There is an ever-increasing demand for more sustainable buildings. These drive increased demand for electromechanical products and solutions as they support the improved efficiency and sustainability of buildings. Our investments in more efficient access solutions supported by Environmental Product Declarations enable us to benefit from this trend.”

Global Technologies

ASSA ABLOY’s global technologies Q3 sales totaled $517 million with 4% organic growth. Officials say organic sales growth was strong in the secure issuance sector and robust in physical access control, identity and access solutions and citizen identification. Growth declined in extended access and fell significantly in identification technology. Net sales growth from acquisitions was 4%.

Entrance Systems

ASSA ABLOY’s entrance system sales in Q3 amounted to $1 billion with no growth. Officials say organic sales growth was strong in the industrial and pedestrian segments, good in the perimeter sector but declined significantly in residential. Net sales growth from acquisitions was 2%.

Acquisitions 

ASSA ABLOY reported ten acquisitions during Q3. The combined price for the acquisitions was $4 billion. The acquisitions included Inovadoor, Forte, Evolis, Lawrence Hardware and Gallery Specialty and Sunray Engineering.

Regional Financial Data

Regionally, the company’s Q3 sales in the Americas totaled $994 million, with organic growth of 3%. Officials say organic sales growth was good in North America’s non-residential segment, stable in the Latin America segment but declined significantly in the U.S. residential segment. Net sales growth from acquisitions was 38%, driven by the acquisition of HHI.

Sales for the quarter in Asia Pacific totaled $236 million, with organic growth of –7%. Organic sales growth was strong in Southeast Asia but declined in China, South Korea and the Pacific.

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