Stanley Black & Decker posts sales gains

With a stated objective of doubling the size of the company by 2022, and coming off the announcement of a plan to buy the Craftsman brand from Sears, Stanley Black & Decker reported fourth quarter and full year sales gains.

Company-wide, net sales increased 2.6% to $2.92 billion in the fourth quarter. Net earnings declined 3.9% to $265.5 million.

In the tools & storage division, net sales increased 6% in the fourth quarter.

With a stated objective of doubling the size of the company by 2022, and coming off the announcement of a plan to buy the Craftsman brand from Sears, Stanley Black & Decker reported fourth quarter and full year sales gains.

Company-wide, net sales increased 2.6% to $2.92 billion in the fourth quarter. Net earnings declined 3.9% to $265.5 million.

In the tools & storage division, net sales increased 6% in the fourth quarter.

CEO James Loree said the M&A activity is big part of its strategy. “Adding notable and iconic brands, such as Lenox and Irwin, and now Craftsman, uniquely complements our existing, strong portfolio of world-class brands and franchises,” he said. “The sale of the majority of our Mechanical Security businesses will allow us to redeploy that capital from a low-growth business and invest it in more robust growth opportunities.”

The company’s deal to acquire the Craftsman brand has an all-in price tag of about $900 million. And the company’s $1.95 billion deal to acquire the Tools business of Newell Brands is expected to close in the first quarter of 2017.

For the full year, Stanley revenues totaled $11.4 billion, up 2% from the previous year. Net income increased from $883.7 million to $965.3 million, up 9.2%.

The company anticipates 4% organic growth in 2017.

“Certainly, there are significant challenges from a currency and geopolitical perspective, but we are confident in our ability to manage through these uncertainties and focus on solid execution,” Loree said.