Published by Global Banking and Finance Review
Posted on April 23, 2025
By Elviira Luoma
(Reuters) -Assa Abloy, the world's biggest lockmaker, said on Wednesday it was well-positioned to adapt to changing market conditions, including through price hikes, thanks to a strong local presence in its markets amid the escalating trade war.
The Swedish group's CEO Nico Delvaux told Reuters that the company was compensating for tariff costs by increasing prices, reinforcing his February comments that it would do so if tariffs were imposed.
"We have already several times increased prices, and we are confident that we will be able to defend our margins through those prices," he said.
U.S. President Donald Trump earlier this month paused most of the sweeping tariffs he had just imposed on dozens of countries, while further ramping up pressure on China.
The 90-day freeze does not, however, affect the 10% blanket duty on almost all U.S. imports or the previously announced levies on Canada, Mexico and specific products such as steel.
"Of course, there is the negotiation with the suppliers to see if we can get better costs. Because also the suppliers understand that the cost increases might lead to lower volumes. Therefore, they also are willing to help," Delvaux said when asked about other measures to mitigate the tariffs.
He added that as a part of long-term strategy, Assa Abloy was looking into the possibility of buying and producing some products in at least two locations so that it has a backup if something happens in one production facility.
The group will also continue to prioritise growth opportunities despite the challenging conditions, while taking cost saving actions where needed, it said.
Assa Abloy's operating profit, excluding items affecting comparability, rose 4% to 5.65 billion Swedish crowns ($591.1 million) in the first quarter of 2025. Organic sales grew 2% in the same period.
Its shares were up 4% at 1128 GMT in Stockholm.
($1 = 9.5586 Swedish crowns)
(Reporting by Elviira Luoma in Gdansk, editing by Milla Nissi)
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