DIY demand drives big sales at Stanley Black & Decker
Stanley Black & Decker reported third quarter revenue increased 6% to $3.9 billion compared to third quarter 2019 sales of $3.6 billion.
The New Britain, Conn.-based manufacturer said that sales were lifted by an 11% organic growth tools and storage.
Net earnings for the third quarter soared 71% to $395.2 million from net earnings of $232.1 million in the previous third quarter.
Tools and storage net sales climbed 11% in the quarter, including a 10% increase in volume and a 1% increase in price.
Stanley Black & Decker said that organic tools and storage revenues across all regions benefitted from consumers reconnecting with the home and positive e-commerce trends that have emerged during the pandemic, with North America growing 11%, sales in Europe rising 12%, and revenue in emerging markets up 11%.
Industrial sales fell 7% during the quarter while security sales slipped 1%.
The company noted that its cost reduction program announced on April 2 is expected to deliver $500 million in cost savings in 2020.
During the third quarter, $175 million of savings were realized, bringing the year-to-date total to $350 million. Currently, the carryover benefit into 2021 is $125 million.
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The Bottom Line: Strong tool sales fueled by DIY demand lift sales 6% as profits jump 71% to $395.2 million.
What the CEO said: "The third quarter was one of the most remarkable and memorable quarters in my 20+ years with the company,” said James Loree, Stanley Black & Decker president and CEO. “In the third quarter we successfully pivoted to organic growth, capturing the strong demand trends in tools & storage while leveraging our swift and effective cost actions to deliver record operating margins and earnings per share as well as impressive free cash flow. The agility of our team and its ability to navigate, collaborate and shift key areas of focus during this period was truly a differentiator for us, and I want to thank our 54,000 employees around the globe for their efforts.”
Company info: Click here to read the full third quarter report from Stanley Black & Decker.