Half-year Report 2018/19

3 min.

Segment Access Solutions AMER

Lower sales, higher profitability

Operational performance

AS AMER achieved total sales of CHF 402.1 million in the 1st half of financial year 2018/19. Organic sales growth declined 1.8% compared to the previous year, whereas the EBITDA margin improved by 1.4%-points to 21.1%. Segment EBITDA reached CHF 84.7 million (previous year CHF 80.9 million). The segment focused on profitable growth and put a particular emphasis on profitability which is reflected in the improved EBITDA margin. The margin improvement was driven by higher sales prices and a positive mix effect which more than compensated increased IT costs for the roll-out of global applications and higher raw material prices. In addition, the segment benefited from the ongoing production footprint adjustments, which led to a more favorable cost base. Since the dormakaba merger in September 2015, the business has conducted a thorough analysis of its manufacturing footprint and has closed seven of its production sites due to operational synergies and economies of scale. The business is achieving this manufacturing footprint transformation by shifting production to its major production hubs, i.e. Indianapolis (USA) for mechanical solutions, Montreal (Canada) for electronic solutions, Nogales (Mexico) for high-volume assembly products (like pushbutton locks), and Reamstown (USA) for Entrance Systems and Interior Glass Systems.

As there was a continued negative margin contribution from the US Door Hardware Service Business, the segment decided to divest parts of it as of December 2018. The impact of the discontinued business on sales growth in the 1st half of financial year 2018/19 was 0.8%.

Market development

Organic sales growth was negatively impacted by a weaker Lodging Systems business in North America. After four years of double-digit growth driven by upgrades to mobile access solutions for major hotel chains, the Lodging Systems business was for the first time below previous year as a major project was finalized. Strong demand for access solutions for multihousing in North America and orders from hotels outside North America could partially compensate for the decline. Further, business environment in South America was rather weak.

All other Product Clusters contributed to organic growth. Entrance Systems, Electronic Access & Data experienced double-digit sales growth. There was sales growth as well for Interior Glass Systems, Door Hardware, Services (excluding the discontinued business) as well as the acquired Best Access Solutions business. Safe Locks sales were slightly above previous year’s level.

Key figures – segment AS AMER

 

 

 

 

 

 

 

 

 

in CHF million

 

Reporting half-year ended 31.12.2018

in %

 

Reporting half-year ended 31.12.2017

in %

 

Change on previous year in %

Net sales third parties

 

388.1

 

 

395.6

 

 

–1.9

Intercompany sales

 

14.0

 

 

14.9

 

 

 

Total segment sales

 

402.1

 

 

410.5

 

 

–2.0

Change in segment sales

 

–8.4

–2.0

 

129.5

46.1

 

 

Of which translation exchange differences

 

2.4

0.6

 

–1.8

–0.6

 

 

Of which acquisition (disposal) impact

 

–3.3

–0.8

 

125.1

44.5

 

 

Organic sales growth

 

–7.5

–1.8

 

6.2

2.2

 

 

Operating profit before depreciation and amortization (EBITDA)

 

84.7

21.1

 

80.9

19.7

 

4.7

 

 

 

 

 

 

 

 

 

Average number of full-time equivalent employees

 

2,915

 

 

3,136

 

 

 

Net sales (in CHF million) – segment AS AMER

Letter to the shareholdersAccess Solutions APAC

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