M&A activities weigh on SWK Q4 earnings
Stanley Black & Decker’s fourth-quarter earnings dropped 89% on a year-ago basis, due in large part to its mergers and acquisitions activities.
"During 2013 we made significant progress driving organic growth throughout the organization and the fourth quarter was no exception as the momentum continued from our organic growth initiatives," said chairman and CEO John Lundgren. "As we move into 2014 it is important to note that our long-term strategy and financial objectives remain intact. We are, however, focused on executing previously announced operating and capital allocation actions to boost returns in the near term. These actions demonstrate our commitment to drive sustainable improvements to the companys cash flow return on investment and drive shareholder value."
Net earnings for the company were $56.1 million for the fourth quarter, down dramatically over last year’s $492.1 million in income. Total earnings for 2013 came in at $490.3 million, nearly half of 2012’s $883.8 million.
Net sales for the quarter came in at $2.91 billion, up 9% over last year. Similarly, full-year revenues increased 8% to $11.0 billion.
SVP and CFO Donald Allan Jr. added that Stanley’s 2014 outlook would see a significant reduction in M&A charges, with an organic growth rate of approximately 4%.
"In addition to continuing to drive organic growth and improving security margins, enhancing our operating leverage is a key priority for 2014," said Allan. "The financial drag from the growth investments made in 2013 is mostly behind us and we will tightly manage SG&A expenses."
Russin Lumber hires VP market development
Montgomery, N.Y.-based Russin Lumber has added Scott Orr to the company’s executive team as VP market development.
A seasoned professional with a long tenure of success in building products, Orr comes to Russin having spent the past 25 years with Moulding & Millwork, most recently serving as group general manager heading up all sales and operations for the company in the northeast.
Orr brings to Russin a passion for sales management, training and customer service combined with an aggressive mentality focused on sales growth. “Scott is a great addition to our team at the perfect point in our company’s growth trajectory,” said Jordan Russin, the company’sVP sales and marketing. “His relationships and long history of sales success will help our company to grow rapidly as the industry expands.”
Orr lives in northern New Jersey and will work with Russin’s territory managers throughout its trading area. He is married with three children and is passionate about family and sports.
Russin Lumber is a manufacturer and distributor of building materials covering 13 Northeast and Mid-Atlantic states.
CORRECTION: Associated Materials CEO resigns
Jerry Burris has resigned from his role as CEO and director of Cuyahoga Falls, Ohio-based Associated Materials to pursue other interests.
"I have enjoyed my time at AMI and am proud that our team’s accomplishments have positioned the company for a strong future," said Mr. Burris. "As a shareholder of AMI, I look forward to following its continued success over the coming years."
The company’s board of directors is currently in the process of seeking a replacement. In the meantime, current director and former CEO Dana Snyder will serve as interim CEO.
"We are thankful for Jerry’s significant contributions to AMI during his tenure as chief executive," said chairman Erik Ragatz. "Under Jerry’s leadership, AMI has made significant progress toward our strategic imperatives, including enhancing our customers’ experience and positioning the company for sustainable long-term growth. We wish Jerry the best in the next phase of his career."
[NOTE: A previous version of this article incorrectly stated that Burris had been named CEO. HCN regrets the error.]