• Organic growth for comparable units was 5 percent (5).
  • The operating margin (EBIT) was 14.7 percent (14.4).
  • Earnings per share amounted to SEK 6.97 (6.33).
  • Sales
    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.
    Changes in sales    
    % 2005 2004
    Acquired growth 1 5
    Organic growth 5 5
    Currency effects 3 -4
    Total 9 6
    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
    % 2005 2004
    Mechanical locks, lock systems and accessories 53 53
    Electromechanical and electronic locks 29 27
    Security doors and fittings 18 20
    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).
    Cost structure
    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
    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).
    Tax
    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.
        GROUP       PARENT COMPANY  
        EUR M1 SEK M SEK M     EUR M1 SEK M SEK M
      Note 2005 2005 2004   Note 2005 2005 2004
    Sales 2 2,996 27,802 25,526     - - -
    Cost of goods sold   -1,779 -16,508 -15,221     - - -
    Gross income   1,217 11,294 10,305     - - -
    Selling expenses   -526 -4,883 -4,272     - - -
    Administrative expenses 3 -192 -1,781 -1,883   3, 6, 8, 9 -34 -313 -331
    R&D costs   -63 -588 -500     -2 -21 -
    Other operating income and expenses 4 3 28 24   4 81 749 580
    Share of earnings in associates 5 1 8 8     - - -
    Operating income 6-10 440 4,078 3,683   10 45 415 249
    Financial income 11 5 51 164   11 94 867 4,550
    Financial expenses 10, 12 -61 -573 -648   10, 12 -60 -554 -923
    Income before tax   384 3,556 3,199     79 728 3,876
    Tax on income 13 -102 -943 -843   13 -1 -13 -7
    Net income   282 2,613 2,356     78 715 3,869
     
    Allocation of net income:
    Shareholders in ASSA ABLOY AB   281 2,608 2,349          
    Minority interests   1 5 7          
     
    Earnings per share
    before dilution, SEK 14   7.13 6.42          
    after dilution, SEK 14   6.97 6.33          
    1 Average EUR/SEK rate = 9.28. Used for conversion from SEK to EUR above.