ASSA ABLOY is organized into three geographical divisions and one product division. The geographical divisions, EMEA (Europe, Middle East and Africa), Americas (North and South America) and Asia Pacific (Asia, Australia and New Zealand), consist of a number of local lock companies which are active mainly on a local market. The product division, Global Technologies, comprises ASSA ABLOY Entrance Systems, ASSA ABLOY Hospitality, ASSA ABLOY Identification Technology and ASSA ABLOY HID, all of which serve a global market. Functions common to the whole Group appear in the column headed 'Other' in the table.
From 1 January 2006 ASSA ABLOY Entrance Systems has become a separate division.
Sales totaled EUR 1,255 M (1,210), with organic growth of 3 percent. Operating income amounted to EUR 184 M (174), with an operating margin (EBIT) of 14.7 percent (14.4). Return on capital employed amounted to 16.6 percent (16.3). Operating cash flow before interest paid amounted to EUR 205 M (201).
EMEA made stable progress over the year as a whole, with good sales performance in Scandinavia and Britain in particular. Growth markets in eastern Europe, the Middle East and Africa are continuing to develop well. Other European markets showed stable sales overall. The structural changes in the division affected results positively but were offset by higher selling costs.
Sales totaled USD 1,182 M (1,129), with organic growth of 5 percent. Operating income amounted to USD 217 M (199), with an operating margin (EBIT) of 18.3 percent (17.6). Return on capital employed amounted to 19.6 percent (18.2). Operating cash flow before interest paid amounted to USD 236 M (192).
Americas' good performance was due to improved demand in the USA, specifically in the important commercial segment. The Architectural Hardware Group, which represents about 40 percent of Americas' sales, showed an improved sales trend and continued to improve its profitability. The Door Group showed strong growth, due largely to price rises resulting from the increased cost of steel. The Residential Group showed strong growth and profitability. Other units are showing weaker performance.
3 Asia, Australia and New Zealand.
4 ASSA ABLOY Entrance Systems, ASSA ABLOY Hospitality, ASSA ABLOY Identification Technology and ASSA ABLOY HID.
5 Excluding restructuring payments.
Sales totaled AUD 389 M (343), with organic growth of 2 percent. Operating income amounted to AUD 43 M (52), with an operating margin (EBIT) of 11.1 percent (15.1). Return on capital employed amounted to 12.9 percent (16.8). Operating cash flow before interest paid amounted to AUD 46 M (51).
During the year Australia performed well in the commercial segment but the performance of the residential segment in Australia and New Zealand is a burden on the whole division. Restructuring costs and dilution by acquired units were the main factors in the division's reduced margin. Sales in Asia were good. The acquisitions of Best Metaline in South Korea and Wangli in China strengthen the division's position on these important growth markets.
Sales totaled SEK 5,760 M (4,911), with organic growth of 10 percent. Operating income amounted to SEK 811 M (632), with an operating margin (EBIT) of 14.1 percent (12.9). Return on capital employed amounted to 14.1 percent (11.8). Operating cash flow before interest paid amounted to SEK 648 M (652).
Global Technologies is performing well, with strong sales growth and a rising margin.
ASSA ABLOY Entrance Systems achieved good sales growth during the year, especially in the service sector, which improved its market position in both Europe and the USA.
The market for ASSA ABLOY Hospitality developed well during the year. Profitability improved in line with growing sales and ongoing restructuring.
ASSA ABLOY Identification Technology is showing strong sales growth for a variety of product applications based on RFID technology.
ASSA ABLOY HID performed well, especially in North America, with strong growth and high margins.
3 Asia, Australia and New Zealand.