Stanley Black & Decker posts weak profits
Tool and hardware maker Stanley Black & Decker posted net sales of $2.8 billion for its third fiscal quarter, up 6% over the same quarter last year. Both price and volume were relatively flat, the company said, while currency (-3%) partially offset the contribution from acquisitions (+9%).
Net earnings for the third quarter, which ended Sept. 29, fell 25%. Acquisition charges and shrinking margins on slow sales were to blame, according to the manufacturer.
"During the quarter, we saw pockets of strength within our hand and power tool businesses in the U.S. and the emerging markets, largely driven by our successful new product innovations, which are enabling us to continue to gain market share," said president and CEO John Lundgren. "Conversely, our industrial and automotive repair business in Europe, which is one of the most profitable in the industrial segment, continued to experience market-related contraction."
In year-over-year comparisons, the construction and do-it-yourself segment, which includes the company’s power tools and faucets, posted a 2.9% rise in the third quarter. Security, the door hardware and lockset division, saw a 21.7% increase in sales. Revenues in the industrial segment decreased by 2.1%.
Stanley Black & Decker'recently announced it would sell its hardware and home improvement group for $1.4 billion to Spectrum Brands Holdings Inc. In a note accompanying its financial results, the company called this transaction “an important step in our ongoing transformation to a diversified industrial company.”