Profits decline at Stanley Black & Decker
Stanley Black & Decker reported first quarter sales fell 6% to $3.13 billion compared to first quarter 2019 sales of $3.33 billion.
The New Britain, Conn.-based tools, hardware, and security manufacturer said organic sales declined 7% due to the impact of the COVID-19 pandemic.
Tools and storage sales declined 10% in the quarter to $2.07 billion while industrial sales increased 6% to $591 million. Security sales fell 4% to $468 million.
Profits also fell as Stanley Black & Decker reported net earnings of $133.1 million for the quarter, down nearly 22% from net earnings of $170.4 in the first quarter a year ago.
Stanley Black & Decker is undergoing a $1 billion cost reduction program that includes spending cuts, downsizing staff and lowering compensation for some employees.
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The Bottom Line: Sales fall 6% while earnings drop 22% to $133.1 million in the first quarter 2020.
What the CEO said: “In the first quarter, as we navigated through the early stages of one of the more challenging global crises the world has experienced, our team demonstrated great agility and resiliency in tackling the supply chain and initial demand impacts from the global pandemic as well as the carry-over headwinds from tariffs and currency,” said James Loree, president and CEO of Stanley Black & Decker. “We are making critical decisions around those priorities every day to protect the company, our employees and all of our stakeholders. We are proud of how quickly and effectively our employees have responded and are confident in our ability to maintain the vitality, strength and sustainability of our 177 year old company."
Company info: The full first quarter 2020 report from Stanley Black & Decker is available here.
The New Britain, Conn.-based tools, hardware, and security manufacturer said organic sales declined 7% due to the impact of the COVID-19 pandemic.
Tools and storage sales declined 10% in the quarter to $2.07 billion while industrial sales increased 6% to $591 million. Security sales fell 4% to $468 million.Profits also fell as Stanley Black & Decker reported net earnings of $133.1 million for the quarter, down nearly 22% from net earnings of $170.4 in the first quarter a year ago.
Stanley Black & Decker is undergoing a $1 billion cost reduction program that includes spending cuts, downsizing staff and lowering compensation for some employees.
###
The Bottom Line: Sales fall 6% while earnings drop 22% to $133.1 million in the first quarter 2020.
What the CEO said: “In the first quarter, as we navigated through the early stages of one of the more challenging global crises the world has experienced, our team demonstrated great agility and resiliency in tackling the supply chain and initial demand impacts from the global pandemic as well as the carry-over headwinds from tariffs and currency,” said James Loree, president and CEO of Stanley Black & Decker. “We are making critical decisions around those priorities every day to protect the company, our employees and all of our stakeholders. We are proud of how quickly and effectively our employees have responded and are confident in our ability to maintain the vitality, strength and sustainability of our 177 year old company."
Company info: The full first quarter 2020 report from Stanley Black & Decker is available here.