Stanley Black & Decker’s sales in 2Q16
Stanley Black & Decker’s (SWK) consolidated revenues increased by 2.3% year-over-year to $2.9 billion. A 3% increase in volume and a 1% gain from higher prices offset the 2% impact of negative currency translations.
The results in the Tools and Storage segment, which contributed 66% to revenues in 2Q16, were spectacular and were led by robust organic growth in Europe and the United States.
Sales in the Security business grew by 1% on organic growth of 1%, led again by strong growth in Europe where sales were up by 3% organically. In the Industrial segment, revenues were down by 6% as lower electronic volumes and poor end-market conditions in the Oil and Gas and Hydraulics business led to an organic decline in sales.
SWK fiscal 2016 guidance
Stanley Black & Decker (SWK) upgraded its sales and adjusted earnings per share (or EPS) guidance for fiscal 2016 for the second straight time following two back-to-back impressive quarters. The company upgraded its fiscal 2016 adjusted EPS guidance by 10 cents to the new range of $6.30–$6.50, a 6%–10% growth over last year.
The higher guidance is based on a 10 cent benefit from improved productivity and cost actions. A 7 cent benefit from higher organic growth assumptions is expected to be offset by increased currency headwinds coming out of Europe after the Brexit referendum.
The company expects its margins to drop slightly in the Tools & Storage segment to account for the launch costs of its new product, the DeWalt FlexVolt.
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