Stanley Black & Decker's second-quarter performance saw slow sales growth mixed with strong net earnings.
The company reported net sales of $2.9 billion for the three months ended June 28, up 1% compared to the same period last year. Net earnings attributable to common shareholders was $216.5 million, up from $187.1 million in the second quarter of 2013.
“Our focus is on executing our 2014 operating priorities and our strong second quarter and first half results demonstrate the benefits of initiatives to drive margin expansion and operating leverage through pricing and cost management across the organization," said chairman and CEO John Lundgren. "What makes the results even more notable is that we overcame significant headwinds relating to currency, the impact of cold weather on our North American CDIY outdoor product business and a continued volatile environment in the emerging markets."
Lundgren added that the company is increasing its EPS guidance for 2014 to $5.60 (from $5.50) on an adjusted basis or $5.38 to $5.48 on a GAAP basis.
Gross margin (both with and without charges) for the quarter was 36.5%, up 100 basis points from last year's rate of 35.5%. Operating margin was 13.5% -- 13.7% excluding charges, which is up 110 basis points year-over-year.