On Feb 5, Sweden's Assa Abloy announced plans to increase prices if U.S. President Donald Trump proceeds with tariffs on Canada and Mexico, according to the CEO of the world's largest lockmaker. Trump had recently postponed imposing 25% tariffs on Mexico and Canada for 30 days, while implementing an additional 10% tariff on all Chinese imports to the U.S.
CEO Nico Delvaux revealed that the company, a competitor to Allegion and Stanley Black & Decker, is expanding its U.S. inventory. He mentioned that if the delayed tariffs are imposed, Assa Abloy will consider raising prices to mitigate the impact.
Delvaux stated, "We are the market leader for most of the things we do in the U.S. Therefore we also have to play the role of being the first one to come with price increases, and we are confident that our colleagues in the market will follow those price increases."
Despite experiencing weak demand in China, which has affected its Asia Pacific business for several quarters, Assa Abloy reported a 7% increase in sales in the fourth quarter, driven by recent acquisitions. Organic sales fell by 11% in the Asia Pacific segment but remained stable at the group level.
The company sees strong growth in its primary markets of North America, Europe, and Oceania, where commercial activities are robust. Quarterly operating profit, excluding exceptional items, rose by 14% to 6.53 billion Swedish crowns ($595.4 million).
Assa Abloy made eight acquisitions in the final quarter and a total of 26 in 2024. As of 1235 GMT, the company's shares were down 1.7%.
($1 = 10.9683 Swedish crowns)