Assa Abloy Q1 beats forecast helped by higher sales and lower costs

COPENHAGEN (Reuters) – Sweden’s Assa Abloy (OTC:), the world’s biggest lockmaker, on Wednesday reported a smaller drop than expected in first-quarter operating profit following a “very strong” start to the year.

Operating profit fell to 3.96 billion crowns from a year-earlier 4.00 billion. Analysts polled by Refinitiv had on average expected a profit of 3.69 billion crowns. Excluding restructuring costs the operating profit grew to 5.18 billion crowns.

Assa Abloy said in a statement lower material costs, higher prices to customers, cost cuts and strong sales growth at in particular its Global Technologies and Americas divisions boosted profits. Group organic sales growth was 8%.