Stanley Black & Decker sales fall 6 percent
Stanley Black & Decker reported that net sales for the first quarter were $3.1 billion, down 6 percent from $3.3 billion in last year's first quarter.
Net earnings of $133.2 million, or 88 cents per diluted share, declined from $169.9 million, or $1.13, in the same period last year.
Tools & Storage net sales declined 10 percent. Revenue across all regions declined due to the impact from the global pandemic with North America declining 8 percent, Europe down 7 percent and emerging markets down by 13 percent.
Industrial net sales increased 6 percent. Engineered Fastening organic revenues were down 9 percent as share gains were more than offset by lower global automotive light vehicle and general industrial production. Infrastructure organic revenues were down 6 percent as modest growth in Oil & Gas was more than offset by lower North American Attachment Tools volumes.
Security net sales declined 4 percent.
The company's cost reduction program, announced on April 2, is currently being implemented and is expected to deliver $1 billion in annualized cost savings. President and CEO James Loree and senior executives and board members have elected to forego 20 percent of their ongoing cash compensation at least for the remainder of the year.
At the end of the quarter, the company had approximately $1 billion of cash on-hand and has the ability to generate additional $750 million in the second quarter upon the successful remarketing of its Series C Convertible Preferred Stock. In addition, Stanley plans to reduce capital expenditures and temporarily suspend acquisition-related activity and share repurchases until the demand outlook is clearer.
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