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%.
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by RTT Staff Writer
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