Posted July 21, 2010
Stanley Black & Decker earnings fall
Stanley Black & Decker's earnings fell 34% on charges related to the $4.5 billion merger in March that formed the combined company.
Net sales for its second quarter were $2.4 billion. Sales were up 157% versus prior year due to the inclusion of Black & Decker's results (+145%), unit volume (+9%), other acquisitions (+4%) and currency (-1%). On a pro forma basis, legacy Black & Decker also achieved strong unit volume growth (+14%). Both legacy businesses benefitted from supply chain restocking, which accounted for 1/2 to 2/3 of the volume growth, as well as improving underlying demand.
"We continue to be encouraged by how well the integration with Black & Decker is progressing and we remain firmly on track with our cost synergy estimate of $350 million, $90 million of which will be recognized in 2010," said president and CEO, John F. Lundgren. "Although the strength and speed of economic recovery in the developed nations remains unclear, the strategic actions we have taken in recent years, combined with robust new product and acquisition pipelines, have positioned us for exceptional sales and earnings growth both today and for several years to come."
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