Posted January 27, 2010
Stanley's sales fall 11%
The Stanley Works said its fourth quarter net sales were $969 million, down 11% compared to the same quarter last year as growth due to price (+1%) was more than offset by a 16% decline in unit volume.
The Security segment represented 54% of the total company profit and achieved 20% segment profit despite a 4% decline in revenues. Convergent Security revenues fell single digits versus the prior year as weak installation revenues in the U.S. offset a mild uptick in European installations and double-digit growth in recurring monthly revenue for the quarter.
Industrial revenues fell 23% versus the prior year due to sustained weakness in both U.S. and Europe where unit volume fell 30% and 26%, respectively. The CDIY segment experienced further stabilization of sales trends during the quarter. Unit volumes for the U.S. and Europe were down 15% and 17%, respectively, versus the prior year. The integration of Bostitch continued to contribute to the segment's success combined with lower commodity prices as segment profit grew to 11.9% from 6.4% in the year-ago period.
For the full year, revenues were $3.74 billion, down 16% from the prior year. Acquisitions (+4%) and price (+2%) only partially offset a 20% unit volume decline and currency pressure (-2%).
The announced merger with Black & Decker is progressing as planned, with the close anticipated toward the end of the first quarter or the beginning of the second quarter.
Until the merger closes, both companies will continue to operate independently.
