Machine tool maker Stanley Black & Decker (SWK) Thursday reported lower profit for the first quarter, amid a modest growth in revenues and higher costs. The company backed its full year view.
Net earnings attributable to common shareowners decreased to $81.1 million from $121.8 million in the previous year. Earnings per share fell to $0.51 from $0.72.
Excluding charges, earnings per share from continuing operations totaled $1.03, while it was $0.98 last year. On average, 14 analysts polled by Thomson Reuters expected earnings of $0.96 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter advanced 3 percent to $2.487 billion from last year's $2.426 billion. Analysts expected revenues of $2.58 billion.
According to the firm, volume and currency declined around 1 percent each while acquisitions added 4 percent. Price remained flat. The organic initiatives contributed modestly to first-quarter revenue.
Cost of sales climbed to $1.576 billion from $1.514 billion.
The company's CEO John Lundgren said, "Despite a far from robust external environment, we remain confident in our ability to achieve our full year 2013 EPS, sales and free cash flow targets while continuing to invest in organic revenue growth. Profitability in our CDIY business continues to improve, and we expect to realize increased sales in this segment going forward as a result of new product introductions and customer listings as well as our increasing presence in emerging markets.''
The company continues to expect full year 2013 earnings per share in the range of $5.40 - $5.65, excluding charges, assuming that organic net sales will increase 2-3 percent from 2012 driving $0.00 - $0.15 of earnings per share accretion. Analysts look for annual earnings of $5.49 per share on revenues of $11.09 billion.
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