Stanley Black & Decker sales up 2 percent
Stanley Black & Decker reported net sales for the third quarter were $2.9 billion, up 2% versus prior year, as positive volume (+2%) and price (+1%) more than offset currency (-1%).
Net earnings of $248.9 million, or $1.68 per share, compared to $228.7 million, or $1.52 per share, in the same period last year.
"The Tools & Storage business maintained its strong performance in the quarter, earning share gains across the globe and achieving 5% organic growth with improvements in its operating margin rate. Security's performance was also noteworthy with organic growth of 2% and meaningful margin rate expansion as field productivity continues to improve. Not surprisingly, based on market conditions, our Industrial segment continued to face challenges during the quarter within its channels but maintained its sharp focus on cost management to register a healthy operating margin rate," said Stanley Black & Decker's president and CEO, James M. Loree.
Tools & Storage net sales increased 3% versus the third quarter last year, as volume (+4%) and price (+1%) more than offset unfavorable currency (-2%). Organic growth was solid in North America (+4%) and Europe (+11%), while growth within the emerging markets was modestly positive.
Security net sales increased 2% versus the same period last year, as volume (+1%), price (+1%) and small bolt-on electronic acquisitions (+1%) were partially offset by currency (-1%). Organic growth continued in Europe (+1%) on higher installation revenues across much of the region, while North America also posted 1% organic growth, its first quarter of organic growth since the second quarter of 2015, on higher commercial electronic security and automatic door revenues.
Industrial net sales decreased 4% versus last year's third quarter, due to lower volumes (-3%) and price (-1%). Engineered Fastening organic revenues declined 6% due primarily to weaker electronics volumes attributable to a major customer (organic revenues were slightly positive excluding this impact), as well as pressured industrial volumes, more than offsetting higher automotive growth.
On Oct. 12, the company announced the $1.95 billion acquisition of Newell Tools, which will become part of the Tools & Storage segment. This acquisition will enhance the company's position within the global tools and storage industry and broadens the company's product offerings and solutions to customers and end-users, particularly within power tool accessories. This transaction is expected to close in the first half of 2017.