Stanley Black & Decker income drops 22%
Stanley Black & Decker reported that its net income declined by 22 percent during the second quarter.
Net sales were $2.8 billion, up 8% versus prior year. For the quarter, the company posted a profit of $154.8 million, or 92 cents a share, down from $197.3 million, or $1.14 a share, a year before. Excluding merger and acquisition-related charges, earnings were $1.32 a share. Revenue improved 8.1% to $2.81 billion.
The construction and do-it-yourself segment grew 5%, while the industrial segment grew 1% organically.
The company also announced that it is reviewing strategic alternatives for its Hardware & Home Improvement Group, which may include selling the business. With 2011 revenues of $940 million, HHI is a provider of residential locksets, hardware and plumbing fixtures marketed under the Kwikset, Weiser, Baldwin, Stanley, National and Pfister brands.
The company also announced that it is currently evaluating the purchase of an engineered fastening franchise with revenues totaling approximately $500 million. "This highly synergistic asset has favorable growth characteristics with a strong concentration in emerging markets; however, management only intends to proceed with the transaction if it can be obtained for a reasonable multiple that would imply a strong and rapid accretion profile while meeting the company’s stringent return thresholds," the company said in a prepared statement.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
