Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Stanley Black & Decker Q1 Profit Drops 23%; Backs 2012 Outlook

Tool maker Stanley Black & Decker Inc. (SWK: Quote) reported Wednesday a 23 percent decline in profit for the first quarter as a 12 percent growth in revenues were more than offset by higher restructuring charges.

Adjusted earnings per share missed analysts' expectations, while sales topped their estimates by a whisker. The company also reiterated its guidance for the full-year 2012.

"We commenced 2012 on solid footing amidst a macroeconomic backdrop filled with mixed signals. We are in the final stages of achieving the previously announced annualized cost synergy rate of $485 million as we enter 2013, up from our original forecast of $350 million," President and CEO John Lundgren said in a statement.

The company's net earnings for the first quarter declined to $121.8 million or $0.72 per share from $158.7 million or $0.92 per share in the prior-year quarter.

Excluding merger and acquisition-related charges related primarily to the Black & Decker merger and Niscayah acquisition, normalized earnings from continuing operations were $1.09 per share, up from $1.08 per share in the year-ago quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to earn $1.13 per share. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 12 percent to $2.65 billion from $2.36 billion in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $2.64 billion by a whisker. Organic revenues rose 3 percent.

The sales growth for the quarter was attributable to 2 percent volume growth, 1 percent price increase, and acquisitions contributed 10 percent.

The company incurred restructuring charges of $37.4 million in the first quarter, higher than $13.3 million in the prior-year quarter.

Looking ahead to fiscal 2012, the company reiterated its adjusted earnings guidance, excluding M&A related charges, in the range of $5.75 to $6.00 per share. Street is currently looking for full-year 2012 earnings of $5.87 per share.

"We are well positioned to achieve our operating targets for the year as our execution remains on track and the majority of the factors involved in our achievement of the 10-15% EPS growth we have outlined for 2012 are within our control," Donald Allan Jr. noted.

The company said it remains on track to achieve revenue synergies of $300 million to $400 million by 2013.

SWK closed Wednesday' trading at $78.49, down $0.53 or 0.67% on a volume of 2.31 million shares. In after-hours, the stock declined a further $1.49 or 1.49%.

Register
To receive FREE breaking news email alerts for Stanley Black & Decker, Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Hewlett-Packard has recalled the AC power cords for its HP and Compaq notebook computer, citing a tendency to overheat, causing a potential fire and burn hazard. HP requests that consumers stop using the cord immediately and contact them to order a replacement cord free of charge. A UN report describing terrible atrocities carried out by Islamic State militants in Syria says children as young as 10 are being recruited and trained at ISIS camps as fighters. The report, based on 480 interviews and and evidence collected between 20 January and 15 July, chronicles the unimaginable brutality and human cost of the Syrian conflict. The report by the independent international com Poverty in Latin America and the Caribbean has been reduced by almost half in the last decade, and the middle class grew by 82 million people, from 21 percent of the population in 2000 to 34 percent in 2012, according to new data released by the United Nations Development Program (UNDP). UNDP's analysis, based on data from the Center for Distributive, Labor and Social Studies (CEDLAS), highlights
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.