ASSA ABLOY (OTCPK:ASAZF) reports one-off non-cash costs of SEK 6,000M in Q2, related to its Chinese operations in the Asia Pacific Division.
"The one-off costs reflect the continued challenging market conditions for new projects in China. In our updated China strategic review, we expect continued weak earnings in the short- and medium term in the Chinese market. The impairment of intangible assets in earlier Chinese acquisitions and write-downs of operating assets in some of our Chinese business units, reflect the continued challenging market conditions. However, we remain firmly committed to our Chinese operations, and believe in the long-term earnings potential of this market. We are currently launching new initiatives with a dedicated organization for our different market channels and different brands, focusing on new sales and replacement market," says Nico Delvaux, President and CEO of ASSA ABLOY.
Q2 Group's sales increased by 9% to SEK 21,140M. Organic sales growth was 5% vs. 2% Year ago.
Adjusted operating profit, EBIT, excluding the announced one-off costs, amounted to SEK 3,311M and adjusted operating margin of 15.7% vs. 16.1% year ago..
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