Stanley Black & Decker posts weak profits
Tool and hardware maker Stanley Black & Decker posted net sales of $2.8 billion for its third fiscal quarter, up 6% over the same quarter last year. Both price and volume were relatively flat, the company said, while currency (-3%) partially offset the contribution from acquisitions (+9%).
Net earnings for the third quarter, which ended Sept. 29, fell 25%. Acquisition charges and shrinking margins on slow sales were to blame, according to the manufacturer.
"During the quarter, we saw pockets of strength within our hand and power tool businesses in the U.S. and the emerging markets, largely driven by our successful new product innovations, which are enabling us to continue to gain market share," said president and CEO John Lundgren. "Conversely, our industrial and automotive repair business in Europe, which is one of the most profitable in the industrial segment, continued to experience market-related contraction."
In year-over-year comparisons, the construction and do-it-yourself segment, which includes the company’s power tools and faucets, posted a 2.9% rise in the third quarter. Security, the door hardware and lockset division, saw a 21.7% increase in sales. Revenues in the industrial segment decreased by 2.1%.
Stanley Black & Decker’recently announced it would sell its hardware and home improvement group for $1.4 billion to Spectrum Brands Holdings Inc. In a note accompanying its financial results, the company called this transaction “an important step in our ongoing transformation to a diversified industrial company.”
A. O. Smith reports strong Q3
Water technology company A. O. Smith Corp. reported third-quarter earnings from continuing operations of $37.0 million, up 38% from $26.9 million in the prior-year third quarter.
Sales for the three-month period ended Sept. 30 were $462.2 million, up 12% from third-quarter 2011 sales of $412.0 million, driven by incremental Lochinvar sales and strong organic growth in China.
The company’s third-quarter performance included a full quarter of Lochinvar’s results, which was acquired in late August last year, as well as a non-cash, pre-tax gain of $6.4 million from a change to the company’s estimate of the Lochinvar earn-out, which is based on revenue targets.
“The factors that have been influencing our business throughout 2012 continued during the third quarter,” said chairman and CEO Paul Jones. “Our A. O. Smith-branded sales in China grew over 20% in the quarter, driven by new distribution, market share gains and new products, despite the slowdown in that country’s economy.
“The Lochinvar acquisition continues to meet the high end of our profit expectations,” he added. “Lochinvar’s new line of CREST ® high-efficiency, higher BTU input condensing boilers, which was introduced last year, has received excellent market acceptance; and we plan to launch new, larger input models of this product later this year.”
Third-quarter sales of the North America segment, which includes U. S. and Canadian water heaters and boilers, increased to $335.7 million compared with third-quarter 2011 sales of $310.2 million.
Operating earnings from the segment of $50.7 million included a gain of $6.4 million related to the adjustment to the company’s estimate of the Lochinvar earn-out, compared with $30.9 million earned during the third quarter of 2011.
Third-quarter sales from the rest of the world, which includes China, India and Europe, increased more than $23 million to $133.8 million compared with sales of $110.5 million in the third quarter of 2011.
Nexxus Lighting announces distributor agreement with PolyBrite
Nexxus Lighting has executed a distributor agreement with PolyBrite International. Under the agreement, Nexxus will begin offering all of PolyBrite’s Borealis LED lighting solutions to Nexxus’ customers.
Naperville, Ill.-based PolyBrite International has spent more than 17 years developing the LEDs. Key components of the expanded product line are indoor and outdoor lighting fixtures, including LED recessed flat panels, low-bay and canopy lighting systems, and area site and roadway luminaires. In addition, Charlotte, N.C.-based Nexxus will feature Borealis’ new LED T8 tubes, A19, R20, R30, candelabra and other decorative lamp products, along with its premier Array line of LED replacement lamps.
"Part of our strategy with Nexxus is to provide leading edge products and superior service," said Robert LaPenta , founder of Aston Capital and board chairman for Nexxus Lighting. "Research shows the growth for LED fixtures is expected to rise faster than that of other light source replacements. The market share for new LED fixture installations is estimated to rise from approximately 7% in 2011 to more than 45% in 2016 and approximately 70% in 2020."
"This agreement allows Nexxus to provide a broader range of lighting solutions to the commercial, industrial, institutional and municipal markets," added Mike Bauer, president and CEO of Nexxus Lighting. "By partnering with PolyBrite, we quickly and efficiently added a full assortment of complementary bulbs and new luminaires with new technology that is clearly differentiated."