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Stanley Black & Decker Q4 Profit Rises, Sees FY13 EPS Below View

Machine tool maker Stanley Black & Decker, Inc. (SWK: Quote) Thursday reported a significant increase in fourth-quarter profit, helped by a sale gain. Earnings from continuing operations attributable to shareholders fell, amid a slight increase in sales and higher costs. The company issued full year profit forecast below Street view.

Net earnings attributable to shareholders surged to $492.1 million or $2.99 per share from $164 million or $0.98 per share in the previous year.

Net earnings from continuing operations attributable to shareholders slipped to $130.1 million or $0.79 per share from $153.8 million or $0.92 per share in the previous year.

Excluding charges, earnings from continuing operations were $1.37 per share, while it totaled $1.22 per share last year.

On average, 13 analysts polled by Thomson Reuters expected earnings of $1.28 per share for the quarter. Analysts' estimates typically exclude special items.

The firm divested its Hardware & Home Improvement business or HHI on December 17. Discontinued operations earned $362 million in the quarter compared to $10.2 million last year.

Stanley makes power and hand tools, mechanical access solutions, and electronic security and monitoring systems.

The firm's net sales advanced 4 percent to $2.67 billion from $2.57 billion in the prior year. Analysts expected revenues of $2.62 billion.

Sales growth came from 2 percent volume growth and acquisitions contributed 3 percent, which more than offset the 1 percent negative impact of foreign exchange.

Organically, revenue grew 2 percent. Gross margin remained unchanged at 35.5 percent.

In the CDIY segment, net sales increased 8.3 percent to $1.37 billion on higher unit volumes and acquisitions.

Net sales in Security decreased 2.1 percent to $647 million and Industrial segment sales edged up 1.5 percent to $650 million.

Cost of sales climbed to $1.72 billion from $1.66 billion.

Looking ahead to full year 2013, the company expects earnings per share to be in the range of $5.40 - $5.65, excluding charges. Wall Street expects earnings of $5.69 per share for 2013.

Organic net sales is estimated to increase 2 to 3 percent from 2012, driving $0.00 - $0.15 of earnings per share accretion.

SWK settled at $77.96 on Wednesday.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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Editors Pick
After coming under pressure in early trading, stocks have seen some further downside over the course of the trading day on Friday. With the losses on the day, the S&P 500 is pulling back well off the record closing high that it set in the previous session. After reporting an unexpected drop in new orders for U.S. manufactured durable goods in the previous month, the Commerce Department released a report on Friday showing that durable goods orders rebounded by more than expected in the month of June. British economic growth remained high as expected in the second quarter as a robust expansion in the dominant service sector, and industry completely offset the slight weakness in the construction sector. With the second quarter expansion, GDP returned to its pre-crisis level. Gross domestic product grew 0.8 percent sequentially in the second quarter, the same rate as seen in the first quarter.
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