Stanley Black & Decker, the New Britain, Conn.-based manufacturer of tools, security hardware and other products for the home, reported revenues of $2.6 billion for the third quarter of 2011, an 11% rise from sales of $2.3 billion in the same quarter a year ago. The company attributed the gains to 4% organic growth, 3% from currency and 4% from acquisitions.
Net earnings reported for the quarter were $155 million, compared with $123 million in the third quarter of 2010.
In a prepared statement, Stanley Black & Decker's president and CEO, John Lundgren, commented: "We are encouraged with the results our businesses continue to achieve in the midst of the current macroeconomic backdrop. With little to no market growth in many of the industries and developed regions where we have a presence, it is successful new product introductions and ongoing value propositions that have resulted in the market share gains crucial to our company's success. Our revenues within the emerging markets continue to grow at a high rate, and with operating margins above line average, are providing a solid contribution to the company's bottom line as well.”
In the CDIY segment, double-digit unit volume growth in Latin America and Asia and sales growth greater than 20% for professional power tools drove organic growth for the quarter. Volumes in Europe, while still modestly soft, improved sequentially. Organic sales for the entire segment, excluding divestitures and Pfister, grew 5%. Within hand tools, fasteners and storage, the successful DeWalt hand tool launch coupled with strong growth in Latin America was not enough to offset softer-than expected demand in the North American retail and independent channels.
The professional power tools business grew more than 20% due to the launch of the 20V Max lithium-ion line, while the power tool accessories business grew at a high single-digit rate. The consumer power tool business was flat on an organic basis during the quarter. Sales for the Pfister business fell 22% due to the ongoing impact of the 2011 first-quarter loss of SKUs at a major customer.
For the entire CDIY segment, including Pfister and certain minor product line divestitures, net sales increased 6% versus the third quarter of 2010, due to unit volumes, currency and divestitures, while price was flat. Excluding M&A-related charges, overall segment profit was up 20 basis points versus the third quarter of 2010, as cost synergies and favorable mix more than offset inflation. Price was flat as successfully implemented price increases in response to commodity inflation were offset by higher promotional discounts on Ni-Cad and other older-generation products.
Executive VP and COO James Loree commented: "Our ability to drive above market organic growth was clear again during the quarter. Professional power tools grew over 20% during the quarter in a market that was subdued, due to the successful launches of our 12V and 20V DeWalt lithium-ion line (third quarter of 2010 and third quarter of 2011, respectively). Engineered fastening grew 14% organically, almost three times as much as global light vehicle production, as new products and increased platform penetration across the globe drove volumes. Within security, the North American-focused Kwikset security hardware grew 10%, with no help from residential and commercial construction markets. Separately, the integration of Niscayah, which commenced during the quarter, has proceeded as planned during the first four weeks, and we continue to feel confident in our ability to deliver the previously communicated $80 million in cost synergies by 2013.”