Sales up, earnings down for SWK in Q3
Acquisitions and organic growth pushed New Britain, Conn.-based Stanley Black & Decker third-quarter revenues up 4% to $3.6 billion in the third quarter.
The company said contributions from volume (up 3%), acquisitions (up 3%) and price (up 1%), offset currency and divestitures (both down 1%).
The company’s tools & storage business, one of Stanley’s three divisions, generated a net sales increase of 4% compared to the same quarter last year. North America organic growth was driven by the rollout of the Craftsman brand and new product innovation, including DeWalt Flexvolt, Atomic & Xtreme, which were partially offset by continued declines in industrial-focused businesses, the company said.
The company’s industrial division reported a sales increase of 13% compared to the prior quarter. Security net sales were down 4%.
"To position the business for success in 2020 and beyond, we have begun implementing new cost and pricing actions, as well as accelerating our $300 – $500 million multi-year margin resiliency initiative,” said Stanley President and CEO James Loree. “These actions will preserve our ability to continue to generate continued earnings growth and manage externally driven volatility.”
Looking ahead, Stanley pointed to an incremental $55 million in tariff and currency related cost pressures.
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The bottom line: Net earnings declined to $230.5 million, down from $247.8 million in the third quarter of 2018.
What the CEO said: “"In the third quarter, we successfully delivered above-market organic growth and adjusted earnings per share expansion versus prior year, overcoming $90 million in external pre-tax margin headwinds and challenges in certain end markets,” said James M. Loree, president and CEO.
Company info: Read the full third quarter earnings release here.
The company said contributions from volume (up 3%), acquisitions (up 3%) and price (up 1%), offset currency and divestitures (both down 1%).
The company’s tools & storage business, one of Stanley’s three divisions, generated a net sales increase of 4% compared to the same quarter last year. North America organic growth was driven by the rollout of the Craftsman brand and new product innovation, including DeWalt Flexvolt, Atomic & Xtreme, which were partially offset by continued declines in industrial-focused businesses, the company said.
The company’s industrial division reported a sales increase of 13% compared to the prior quarter. Security net sales were down 4%.
"To position the business for success in 2020 and beyond, we have begun implementing new cost and pricing actions, as well as accelerating our $300 – $500 million multi-year margin resiliency initiative,” said Stanley President and CEO James Loree. “These actions will preserve our ability to continue to generate continued earnings growth and manage externally driven volatility.”
Looking ahead, Stanley pointed to an incremental $55 million in tariff and currency related cost pressures.
# # #
The bottom line: Net earnings declined to $230.5 million, down from $247.8 million in the third quarter of 2018.
What the CEO said: “"In the third quarter, we successfully delivered above-market organic growth and adjusted earnings per share expansion versus prior year, overcoming $90 million in external pre-tax margin headwinds and challenges in certain end markets,” said James M. Loree, president and CEO.
Company info: Read the full third quarter earnings release here.