Swedish lock maker Assa Abloy’s profit beats analysts’ expectations although the company said that the remainder of the year will be "extremely" challenging.

Assa Abloy, the world's biggest lock maker, made a second-quarter operating profit of 1.34 billion kronor ($179 million), down from 1.38 billion a year ago. The result beats the average forecast of 1.24 billion kronor in a Reuters poll.

The downturn in construction continued on all the world's major markets, the company said, adding that the result benefited from the company’s current efforts to cut its workforce and move a large amount of the production to low-cost countries.

Assa Abloy, maker of Yale locks and other high-tech door-security products, said that the rest of the year would be "extremely" demanding.

"Our expectation is still that the remainder of 2009 will be extremely challenging for both sales and earnings”, said Assa Abloy’s chief executive officer Johan Molin in a comment.

“During the second half of the year the important US market will weaken further owing to a severe cutback in commercial construction projects”.

Sales were up 5 percent and totaled 8.9 billion kronor, mainly boosted by exchange-rate effects.

On Wednesday the Swedish lock maker also said that it had signed an agreement to acquire the Italian based Ditec Group, a global maker of entrance automation products for pedestrian, sectional, high speed doors and gates, with 550 employees worldwide. Ditec Group's sales are expected to reach 80 million euros this year.