SWK posts modest sales gains in Q2
For Robert Lundgren, it was the last quarterly report as CEO of Stanley Black & Decker. It was a good one to cap his 12 years at the helm.
The New Britain, Connecticut-based tool maker and internation security and industrial firm reported second quarter net sales of $2.9 billion, up 2% compared to the same quarter last year. This despite the -2% impact of currency exchange rates.
Net earnings increased to $271.5 million, up from $227.2 million.
"Although we continue to face a challenging operating environment, including the potential fall-out from Brexit, we remain confident in our ability to navigate through such conditions given our robust innovation, organizational agility and our increasing capability to consistently execute at a high level."
Lundgren will turn 65 in September and will retire effective July 31. He will remain chairman of the board.
His replacement will be James Loree, currently president and COO.
"We posted another strong quarter with total organic growth of 4% along with a record operating margin rate of 15.8%, reflecting our focus on organic growth and our business units' ability to execute in challenging markets,” said Loree.
As an example of the kind of innovation anticipated as a result of a program called SFS2.0, Loree pointed to the launch of the DeWalt Flexvolt system.
The company raised its 2016 full year guidance to $6.30 to $6.50 per share, up 6% to 10% compared to 2015.
