* Sees continued weak growth in mature markets 2012
* Sees further slowing economic growth in new markets
* Q2 EBIT 1.89 bln SEK vs consensus fcast 1.85 bln
* Q2 core sales +3 pct vs +3 pct in Q1
(Adds detail, background, analyst, shares)
STOCKHOLM, July 27 Assa Abloy, the
world's biggest lock maker, said on Friday mature markets were
weak and growth in emerging markets was slowing, as it reported
second quarter results in line with market expectations.
Assa, whose products range from household locks to advanced
digital entrance systems, has been squeezed by cuts in public
spending across Europe with growth mainly driven by expanding
emerging markets such as China where growth is now slowing.
Construction markets, not least in Europe and the United
States, are sluggish.
"On the mature markets stable economic development with
unchanged weak growth is expected, while economic growth on the
new markets is expected to be less strong than last year," the
company, which generates the bulk of sales in mature markets,
Core sales, keenly watched by analysts because of a steady
flow of acquisitions that boosts the overall sales figure, was
up 3 percent, unchanged from the preceding quarter but down from
5 percent a year earlier, matching expectations in a Reuters
The rival to U.S. groups Ingersoll-Rand and Stanley
Black & Decker said operating profit grew to 1.9 billion
crowns ($275 million) from a year-earlier 1.6 billion, roughly
matching expectations in a Reuters poll, helped by newly
acquired companies and restructuring measures as well as
recovering growth in some American markets.
Assa's shares were roughly unchanged mid-morning, in line
with the wider market in Stockholm.
Analysts said solid performance in other business units
compensated for weak performance in some European markets.
Organic sales at the EMEA unit, which includes Europe, were
unchanged and profit and margin lagged expectations.
"It's entirely in line at group level, it's EMEA that sticks
out," said Swedbank analyst Niclas Hoglund. "That is fully
compensated for, and a little more, by good growth and margins
in (access systems unit) Global Technologies and somewhat
stronger Americas and Asia."
Assa, which makes locks under brands such as Yale, repeated
a long-term outlook for good organic sales growth and operating
($1 = 6.8670 Swedish crowns)
(Reporting by Anna Ringstrom)