Stanley Black & Decker's sales rise but earnings fall
Stanley Black & Decker reported higher sales but lower earnings for the second quarter.
The company said its second-quarter revenues of $4.4 billion increased 16 percent from $3.8 billion in last year's second quarter.
Net earnings of $87.6 million, or 57 cents per diluted share, were down from earnings of $459.5 million, or $2.75 per share, in the same period last year.
By segment, Tools & Outdoor sales of $3.7 billion increased 17 percent from last year's second quarter. Industrial sales of $648 million increased 8 percent.
"While the macroeconomic environment – including inflation, rising interest rates and significantly slower demand in late May and June – drove the majority of the challenges we faced this quarter, these headwinds underscore the need to accelerate our strategic transformation," said Donald Allan Jr., president and CEO. "As the softening of the demand environment accelerated rapidly during the last portion of the quarter, we began taking immediate corrective cost actions, which we are continuing to implement. We are now preparing for demand to normalize closer to 2019 levels for the remainder of 2022."
The company has launched a series of initiatives designed to generate cost savings by resizing the organization and maximizing cash flow.
Stanley expects to achieve $1 billion of cost savings by the end of 2023 through the following initiatives: accelerating supply chain transformation ($0.5 billion); simplifying the corporate structure ($0.2 billion); optimizing organizational spans and layers and prioritizing investments in its core businesses ($0.1 billion); and reducing indirect spend ($0.2 billion).
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