* Says to close about 30 plants and offices
* Restructuring costs seen at 1 bln SEK
* Q3 EBIT 2.09 bln SEK vs forecast 2.05 bln
* Chalks up organic growth in Europe
STOCKHOLM, Oct 28 Assa Abloy, the
world's biggest lock maker, said on Monday it would launch a new
efficiency scheme before year-end that would see it shutter
about 30 plants and offices over the coming three year.
The maker of Yale locks has grown through a steady stream of
acquisitions in a fragmented market for household and commercial
products over the past decade that has seen it carry out near
constant restructuring to leverage economies of scale.
Assa also said earnings before interest and tax rose to 2.09
billion Swedish crowns ($330.2 million) from a year-earlier 1.93
billion to come in just above a mean forecast of 2.05 billion in
a Reuters poll of analysts.
The company said its new restructuring measures would be
launched in the fourth quarter and would result in one-off costs
of about 1.00 billion crowns and the same level of savings over
roughly three years. It did not specify how many jobs would be
cut under the plan.
The company, a rival to U.S. Ingersoll-Rand and
Stanley Black & Decker, said its sales rose 3 percent,
excluding acquisitions and currency swings, in line with
analysts' expectations and the rate of the preceding quarter.
Assa Abloy, whose products range from ordinary household
locks to advanced digital entrance systems, has seen sluggish
growth in a European market where it generates roughly half its
sales and where a weak economy has curbed construction activity.
Assa said like-for-like sales in the region grew 1 percent,
on the back of strength in markets such as Germany, the Nordic
countries and eastern Europe in the third quarter, after being
flat in the second and contracting around the turn of the year.