Assa Abloy: stock in a spin with extraordinary costs in Chin

(CercleFinance.com) - The Assa Abloy is tumbling over 7% on the OMX this morning, sanctioned for its announcement of extraordinary charges (without cash outflows) of six billion Swedish kronor in its second quarter, related to impairments of its business in China.


These extraordinary costs reflect persistently difficult market conditions for new projects in China, said group CEO Nico Delvaux, who expects local results to remain weak in the short and medium term.

Over Q2, the Swedish lock maker estimates that its adjusted operating margin fell to 15.7%, for sales that are up 9% at 21.14 billion Swedish kronor (+5% in organic terms).


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