COVID-19 hammers Stanley Black & Decker Q2 sales
Stanley Black & Decker reported second quarter 2020 sales fell 16% to $3.14 billion from revenue of $3.76 billion in the second quarter 2019.
Tools and storage sales declined 16% to $2.19 billion with organic revenue dropping 10% in North America, down 21% in Europe, and sliding 29% in emerging markets.
The New Britain, Conn.-based manufacturer said the North America organic decline was driven by channel inventory reductions and reduced construction activity. But strong DIY demand emerged in Stanley’s global e-commerce and North American retail channels during late April and continued throughout the quarter, significantly improving overall results.
Industrial division sales decreased 20% to $518 million as security segment sales fell 11% to $433 million.
Net earnings at Stanley Black & Decker were down 33% to $238.7 million in the second quarter, compared to second quarter 2019 net earnings of $357.4 million.
The company is moving ahead with a $1 billion cost reduction program, announced on April 2 and to expects the plan to deliver $500 million in cost savings in 2020. During the second quarter $175 million of savings were realized, Stanley Black & Decker reported.
The Bottom Line: COVID-19 activity and shutdowns impact Stanley Black & Decker as profits fall 33% to $238.7 million in the second quarter.
What the CEO said: “We are delighted with the second quarter performance under the circumstances,” said James Loree, president and CEO of Stanley Black & Decker. “In particular, our ability to deliver against the weak but rapidly improving demand picture while maintaining our $1 billion cost reduction program enabled near peak level operating margin rates in Tools & Storage during a quarter currently believed to be a trough, was very encouraging.”
Company info: The full second quarter 2020 financial report from Stanely Black & Decker is available here.