The Group's sales increased to SEK 27,802 M (25,526). Exchange-rate effects affected sales positively by SEK
643 M compared with 2004.
In local currencies, sales increased by 6 percent (10). Of this, organic growth by comparable units accounted for 5 percent (5), while acquired units made a positive contribution of 1 percent (5).
Sales by product group
Mechanical locks, lock systems and accessories accounted for 53 percent (53) of sales. Sales of electromechanical and electronic locks rose to 29 percent (27), while sales of security doors and fittings fell to 18 percent (20).
Total remuneration costs including social costs and pension costs amounted to SEK 9,260 M (8,899), which represents 33 percent (35) of sales. The average number of employees was 29,578 (29,160).
The average number of employees in the Parent company was 74 (52).
The Group's material costs totaled SEK 8,059 M (7,162), which represents 29 percent (28) of sales. The rise was mainly due to the increased costs of metals such as steel and brass.
Other purchasing costs totaled SEK 5,557 M (4,888), which represents 20 percent (19) of sales.
Depreciation and write-down of fixed assets amounted to SEK 884 M (924), which represents 3 percent (4) of sales.
Operating income (EBIT) amounted to SEK 4,078 M (3,683) after positive currency effects of SEK 97 M. The operating margin was 14.7 percent (14.4).
Operating income before depreciation (EBITDA) amounted to SEK 4,960 M (4,606). The corresponding margin was 17.8 percent (18.0).
Income before tax
Income before tax totaled SEK 3,556 M (3,199). This represents an increase of 11 percent compared with the previous year, with positive currency effects of SEK 73 M. Financial items amounted to SEK –522M (–484). The increase is due to higher interest rates mainly on borrowing in USD. Profit margin – defined as income before tax in relation to sales – amounted to 12.8 percent (12.5).
The Parent company's income before tax amounted to SEK 728 M (3,876).
The Group's tax charge totaled SEK 943 M (843), which corresponds to an effective tax rate of 27 percent (26).
Earnings per share
Earnings per share amounted to SEK 6.97 (6.33), which represents an increase of 10 percent.