Stanley Black & Decker posted second-quarter net sales of $2.8 billion, up 8% from $2.6 billion in the prior-year quarter. The company attributed this to price (+1%), volume (+1%) and acquisitions (+10%), which were partially offset by currency (-4%).
Net earnings for the quarter totaled $154.8 million, down 22% from $197.6 in the second quarter of 2011.
CDIY grew 5%, reflective of new products and market share gains in almost every region of the world. The Industrial segment grew 1% as strength in the Engineered Fastening business more than offset European weakness within Industrial & Automotive Repair (IAR) and a weak North American onshore pipeline market.
“Returning cash to our shareholders continues to be a significant component of our capital allocation strategy,” said John Lundgren, Stanley Black & Decker’s president and CEO. “The 20% dividend increase and share repurchase program we announced today reflects our sensitivity to shareholder value creation and confidence in the cash generation potential of the company for both the near term and the future.
“These actions, partnered with our proven ability to operate, acquire, integrate and successfully grow businesses, are core to our shareholder value proposition,” he added.
The company reiterated its guidance that organic net sales should increase 1% to 2% from a 2011 pro forma revenue base of $11 billion. This includes the impact of revenue synergies from the Black & Decker merger.