The North American non-residential market helped Assa Abloy grow its opening solutions and entrance systems segments in the fourth quarter (Q4) of 2023. Assa Abloy president and CEO Nico Delvaux said the success of North American and Latin America non-residential markets assisted in offsetting losses in the U.S. residential segment.

Financial data from Assa Abloy shows that its Americas opening solutions segment grew by 5% in Q4, while its entrance systems sector increased by 3%. The most sales were in perimeter security, industrial and pedestrian. Sales declined in the residential market.

“In the fourth quarter, and despite lower volumes, we delivered an operating margin, excluding the HHI transaction, of 16.8%, within our target range,” said Delvaux. “This underlines the agility and resilience of our business model and good cost control with more than $48 million* in cost savings in the quarter.”

Full Year and Q4 Financials

During Q4 2023, Assa Abloy’s sales increased 12% to 3.52 billion*. Organic growth was flat, and growth from acquisitions and divestments was 11%, of which 14% were acquisitions. Assa Abloy reports that 2023 sales totaled around $13.5 billion*, an increase of 16% compared to 2022. Organic growth was 3%. Growth from acquisitions and divestments was 8%, of which 10% came from acquisitions.

Opening solutions sales in the Americas during Q4 totaled $1 billion*. Net sales growth from acquisitions was 38%. Sales for the quarter for entrance systems totaled $1.17 billion*.

Acquisitions

Assa Abloy acquired 24 businesses in 2023. The combined acquisition price for the acquired companies, including adjustments from prior year acquisitions, amounted to $5.2 billion*. Delvaux said that Assa Abloy completed six acquisitions in Q4 2023.

2024 Outlook

Delvaux explained that for 2024, Assa Abloy will focus on the transition to electromechanical and digital products and solutions.

“The macroeconomic environment continues to be uncertain,” said Delvaux. “We remain dedicated to mitigating any impact from potentially negative changes in demand through local agility and focus on cost control. To further optimize our operational footprint, we have also started to work on our next manufacturing footprint program, with a launch target towards the end of 2024.”

*Converted from SEK to USD on Feb. 13, 2024.

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