By Dominic Chopping


STOCKHOLM--Assa Abloy earnings met expectations as cost cuts, price hikes and lower material costs offset challenging market conditions.

The Swedish lock maker said net profit in the first quarter rose to 3.45 billion Swedish kronor ($319.1 million) from SEK2.71 billion a year earlier as sales rose 8.7% to SEK35.2 billion.

A FactSet consensus had forecast quarterly profit of SEK3.43 billion on sales of SEK35.47 billion.

Organic sales declined 2% on the year due to three fewer working days in March and a continued weak residential market, it said.

Overall though, the demand for safe and secure access solutions is constantly increasing as a result of rising security threats, public safety concerns, regulatory requirements and a changing work environment, it added.

Last year Assa Abloy completed the $4.3 billion acquisition of Spectrum Brands' hardware and home improvement division known as HHI. It said Wednesday that integration of the business continues to proceed according to plan and it is gradually realizing more synergies.

"Given a robust target pipeline and a solid financial position with a strong balance sheet and cash flow, we are well positioned to continue our successful journey of acquiring companies," Chief Executive Nico Delvaux said.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

04-24-24 0259ET