Stanley Works sees earnings fall 6.7 percent
Stanley Works saw earnings fall 6.7 percent in the second quarter to $79.6 million, compared with $85.3 million in the same period last year. Net sales were up 4.5 percent to $1.15 billion from $1.1 billion in the same period last year.
The New Britain, Conn.-based tool giant reported that earnings in the construction and DIY segment rose 4 percent compared with the year-ago period, while sales also rose 4 percent to $452 million.
Construction and DIY sales were “driven by strength in Europe,” the company said, a region where sales grew 20 percent, “offsetting the adverse impact of lower U.S. unit volumes due to continued weakness in the … North American end user markets.”
Earnings were strong despite “significant pressures relating to inflation and lower absorption of fixed costs,” the company said.
In the industrial segment, earnings fell 4 percent, while sales rose 12 percent to $338 million. Earnings from Stanley’s security business fell 2 percent, and sales rose 1 percent to $364 million.
"As expected, U.S. market conditions remained challenging during the second quarter,” said John Lundgren, chairman and CEO of Stanley Works. “As demonstrated by our first hal