DUBLIN – Allegion (NYSE: ALLE) on Thursday (July 30) reported second-quarter net revenues of $519.5 million and net earnings of $63.9 million, or 66 cents per share from continuing operations.
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Adjusted earnings came in at 71 cents per share, up 16.4% year-over-year and in line with the Zacks Consensus Estimate. The results reflect a decline in selling and administrative and interest expenses.
Quarterly revenues of $519.5 million beat the consensus mark of $514.0 million by 1.1%. However, revenues (including currency impact) declined 2.3% year-over-year. Decline of 17.1% in revenues at the Europe, Middle East, India and Africa (EMEIA) segment overshadowed growth of 0.3% in the Americas segment and 13.2% increase in the Asia Pacific segment.
Second quarter operating margin was 18.4%, compared with 16.8% in 2014. Second quarter adjusted operating margin was 19.5%, compared with 19.1% in 2014. The 40 basis point improvement in adjusted operating margin was driven by favorable price, volume leverage and productivity that more than offset increased investments, inflation and currency exchange, according to a press release.
“Allegion delivered another strong quarter of performance with organic sales growth of nearly 6% and operating margin improvement in all regions,” said David Petratis, Allegion chairman, president and CEO. “Organic growth in the Americas has averaged more than 5% for the last five quarters with improved operating margins inclusive of incremental investments in new products and channel initiatives. Although there is still more work to be done, I am pleased with the continued progress of our EMEIA region as they undergo significant change in difficult markets.”
Petratis said growth in the Americas was balanced across both non-residential and residential businesses.
“Institutional markets continue to grow slowly, driven by higher education, and the long-range outlook remains positive for this market,” he continued. “We are still focused on our growth strategies and continue to execute our balanced and flexible capital allocation plan with the announced acquisitions of SimonsVoss, Axa Stenman and Milre Systek.”
