Stanley Works sees earnings fall 6.7 percent
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.”
Worker hurt in accident at Menards site
A worker fell 27 feet in an accident last week at a Menards store under construction in Ontario, Ohio, according to the Mansfield (Ohio) News Journal.
Aspokesperson for the contractor on the project, FH Martin Constructors of Warren, Mich., told the newspaper that the worker fell through an opening in the structure that had just been cut.
According to the report, the worker suffered serious injuries, including two broken wrists, when he fell through the unprotected opening at the site. The man was later transferred to a Cleveland-area hospital.
The 160,000-square-foot store is expected to be completed by the first quarter of 2009. Ontario is located in north-central Ohio.
Bradco sold to private equity firm
Bradco Supply, the Avenel, N.J.-based distributor of roofing and other building materials, has sold a majority interest to Advent International, a private equity firm that specializes in buyouts and strategic restructuring.
Terms of the deal were not disclosed. The transaction is expected to close in mid to late August.
Ranked in seventh place on the Home Channel News Top 350 Pro Dealer List, Bradco reported total sales of $1.70 billion for 2007, a 12.5 percent drop from the previous year. Sales in the pro channel were $1.68 billion. Bradco operates 154 locations in 30 states.
Company founder Barry Segal, who announced his retirement five months ago, will now be free to focus his time and efforts on charitable endeavors, according to a letter posted on Bradco’s Web site. Segal’s sons, Brad and Martin, will remain part of the management team, the letter said, as will Ted Boylan, who will continue as CEO. The Segal family has retained a minority stake in the business.
Advent International, in its own announcement, said it intends to “work with existing management, and the Segal family [will] capitalize on Bradco’s leadership position, growing through acquisitions of complimentary businesses and regional expansion.”
Advent’s initial investment in Bradco and funding for follow up growth and acquisitions will come from its new $10.4 billion Global Private Equity VI fund, according to the firm, which has completed more than 10 investments in the building products and distribution sector worldwide.