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Stanley Black & Decker reports 5% organic growth in Q1

2/7/2018

Stanley Black & Decker zeroed in on the 5% organic growth it achieved in the first quarter, even if currency translation effects reduced its net sales growth to 2% over last year.


Total revenues came in at $2.7 billion for the quarter, with diluted EPS of $1.28 up 20% year-over-year.


Net earnings of $189.4 million also represented an improvement over the prior year's $162.3 million.


Meanwhile, the gross margin rate decreased from 37.0% last year to 36.6%, owing to price, productivity, cost actions and commodity deflation.

Stanley Black & Decker zeroed in on the 5% organic growth it achieved in the first quarter, even if currency translation effects reduced its net sales growth to 2% over last year.


Total revenues came in at $2.7 billion for the quarter, with diluted EPS of $1.28 up 20% year-over-year.


Net earnings of $189.4 million also represented an improvement over the prior year's $162.3 million.


Meanwhile, the gross margin rate decreased from 37.0% last year to 36.6%, owing to price, productivity, cost actions and commodity deflation.


"Our positive results in the first quarter reflect our focus on generating above-market organic growth, meaningful operating leverage and strong free cash flow conversion for the full year, while executing a capital allocation strategy that creates sustainable value for shareholders," said chairman and CEO John Lundgren. "We are pleased to have achieved 5% organic growth and a 20% year over year increase in earnings per share, reflecting strong performances by many of our businesses."


President and COO James Loree added that the first-quarter performance was impacted in large part by 8% organic growth in the Tools & Storage franchise, which dealt with "difficult comps and slower industrial end markets."


The company is also raising its full-year organic growth estimate from 3% to 3-4%.


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