# Lockmaker Assa Abloy boosts dividend, but wary on outlook Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-02-03 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Assa Abloy Boosts Dividend Despite Uncertain Economic Outlook Meta Description: Assa Abloy, the world's biggest lockmaker, raised its dividend and reported a 28% increase in fourth-quarter operating profit amidst uncertain economic URL: https://financedigest.com/lockmaker-assa-abloy-boosts-dividend-but-wary-on-outlookhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-02-03t081309z2lynxmpej12087rtroptp4assaabloy-results-696x500-1-1736814486211-compressed.jpg) STOCKHOLM (Reuters) -Assa Abloy, the world’s biggest lockmaker, raised its dividend more than expected as it met quarterly profit forecasts on Friday, signalling its confidence even as it braces for an uncertain economic outlook. The Swedish group reported a 28% increase in fourth-quarter operating profit to 5.15 billion Swedish crowns ($49.62 billion) from 4.01 billion a year-earlier. Analysts polled by Refinitiv had on average expected a profit of 5.16 billion crowns. The company, whose products range from [security doors and automated entrance solutions](https://www.financedigest.com/securing-financial-institutions-with-the-help-of-pam-solutions.html "Securing financial institutions with the help of PAM solutions") to electronic and mechanical locks, proposed a dividend of 4.80 crowns per share for 2022, up from 4.20 crowns a year earlier and above the 4.66 crowns seen by analysts. Assa has in recent quarters [cut costs](https://www.financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxis.html "GM’s Cruise to focus on cost cuts as it ramps up robotaxis") as slowing demand, supply chain problems and semiconductor shortages have continued to hamper its business. In the [fourth quarter](https://www.financedigest.com/german-gdp-contracted-by-0-4-in-the-fourth-quarter.html "German GDP contracted by 0.4% in the fourth quarter"), a recovery in activity among travel-related customers and continued very strong demand in the U.S. non-residential market helped [boost sales](https://www.financedigest.com/mercedes-posts-rise-in-q1-sales-boosted-by-evs-premium-cars.html "Mercedes posts rise in Q1 sales boosted by EVs, premium cars"). However, [Chief Executive Nico Delvaux warned](https://www.financedigest.com/bootmaker-dr-martens-warns-on-profit-as-finance-chief-walks.html "Bootmaker Dr Martens warns on profit as finance chief walks") of continued uncertainty after a year of supply chain challenges, high inflation and COVID-19-related disruptions. Since the macroeconomic environment continues to be uncertain, we have [prepared ourselves to mitigate any possible negative changes](https://www.financedigest.com/uk-watchdog-warns-crypto-firms-to-prepare-for-advertising-rule-change.html "UK watchdog warns crypto firms to prepare for advertising rule change") in the demand and to reduce our cost-base throughout the organization,” he said in a statement. Assa, whose rivals include Allegion and Stanley Black & Decker, said organic, or like-for-like, [sales rose 9% in the quarter as sales increased to 32.92 billion](https://www.financedigest.com/allianz-puts-n26-stake-up-for-sale-at-3-billion-valuation-ft.html "Allianz puts N26 stake up for sale at billion valuation – FT") crowns. (Reporting by Marie Mannes Editing by Terje Solsvik and Mark Potter) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---