Stanley Works saw earnings fall 6.7 percent in the second quarter to $79.6 million, compared with $85.3 million in the same period last year. Net sales were up 4.5 percent to $1.15 billion from $1.1 billion in the same period last year.
The New Britain, Conn.-based tool giant reported that earnings in the construction and DIY segment rose 4 percent compared with the year-ago period, while sales also rose 4 percent to $452 million.
Construction and DIY sales were “driven by strength in Europe,” the company said, a region where sales grew 20 percent, “offsetting the adverse impact of lower U.S. unit volumes due to continued weakness in the … North American end user markets.”
Earnings were strong despite “significant pressures relating to inflation and lower absorption of fixed costs,” the company said.
In the industrial segment, earnings fell 4 percent, while sales rose 12 percent to $338 million. Earnings from Stanley’s security business fell 2 percent, and sales rose 1 percent to $364 million.
"As expected, U.S. market conditions remained challenging during the second quarter,” said John Lundgren, chairman and CEO of Stanley Works. “As demonstrated by our first half results, the company continues to gain share in markets within its CDIY segment, as well as pursue growth within its industrial and security platforms.”