ASSA ABLOY to Hike Prices Due to Potential U.S. Tariffs
In response to potential U.S. tariffs on Canada and Mexico, ASSA ABLOY, the leading global lock manufacturer, announced plans to increase prices. CEO Nico Delvaux stated that the company is accumulating inventory in the U.S. and will seek to offset any implemented duties through higher prices if necessary.
Delvaux highlighted ASSA ABLOY's market leadership and confidence that other manufacturers will follow suit with price increases. The company, known for brands like Yale, experienced continued weakness in its Asia Pacific business due to low demand in China.
Despite this, ASSA ABLOY maintains strong momentum in key markets, including North America, Europe, and Oceania, where commercial activity remains high. Reported sales increased by 7% in the fourth quarter due to recent acquisitions.
Quarterly operating profit, excluding exceptional items, rose 14% to 6.53 billion Swedish crowns ($595.4 million), while shares experienced a 1.7% decline by 1235 GMT.