Stanley braces for a hit
A message of confidence, and also a warning.
Stanley Black & Decker CEO James Loree said the company will cut staff and cut spending as it battles the economic fallout from the coronavirus outbreak.
“Throughout our company’s 177-year history, Stanley Black & Decker has weathered a series of exogenous shocks and thrived” he said. “This is one of the most challenging crises our world has ever experienced. We are in a strong position as we face today’s challenges and are taking the necessary actions now to protect our employees and the business while positioning the company to thrive into the future.”
The iconic, New Britain, Conn.-based tool company said it expects a negative impact from the virus. It is responding with a comprehensive cost reduction and efficiency program to adjust its supply chain and manufacturing labor base; reduce indirect spending; reduce non-essential staffing; and also “capture the significant raw material deflation opportunity that has recently emerged.”
It will offer more details in its April 30 earnings call.
In its announcement, the company said its first priority during the crisis is ensuring the health and safety of employees and supply chain partners.
Donald Allan Jr., Executive Vice President and CFO, commented, “We have stress tested our business for a wide variety of demand scenarios and have initiated the necessary actions and contingency plans to ensure we maintain a strong operational foundation and balance sheet during this unpredictable period. We are confident that once through this event we will be in a position to capitalize on a recovery.”
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