Stanley Black & Decker has been in financial news lately. One headline last night said that “now’s not the time to buy.”
Early today, a Marktwatch report talked about the stock “falling nearly 7%,” and a Bloomberg story discussed the same. The Financial Times covered the story a little later, when the drop had increased to over 13%.
By the time the market closed, their stock value was down 15.48%.
Amid the news were puns that proved hard to ignore. Financial Times’s headline was about Stanley Black & Decker being hammered, and then their story talked about how a profits forecast sawed value off their shares.
There is some interesting information in Stanley Black & Decker’s latest investor press release:
We continue to be well-positioned to deliver share gains as we leverage our robust growth catalysts, which include the continued Craftsman brand rollout, Lenox and Irwin revenue synergies, FlexVolt, e-commerce, emerging markets and new innovations.
Tools & Storage net sales increased 4% versus 4Q’17 due to volume (+5%), and price (+2%) partially offset by currency (-3%). Each region contributed to the strong organic growth for the quarter with North America +10%, Europe +4% and emerging markets +3%. North America organic growth was driven by continued benefits from new product innovation, the rollout of the Craftsman brand and price realization.
From Stanley Black & Decker’s Q4 and FY 2018 Earnings Call Slides
I haven’t posted about it yet, but Stanley Black & Decker acquired 20% of MTD, an outdoor power tool brand and OEM.
FlexVolt remains a prominent mention in investor materials. I guess they use the FlexVolt brand instead of Dewalt FlexVolt for brevity, but couldn’t the join the two in the same way you have Stanley FatMax? That’s something I am always curious about.
What other FlexVolt tech do you think will be coming out in 2019?
Interesting – they Q4 2018 saw a 4% increase in tools and storage revenue, but a 0.90% decrease in profits, because benefits from volume leverage, pricing, and cost control was more than offset by currency, commodity inflation, and tariffs.
Tools and storage revenue in Q4 2018 was $2.582 BILLION.
For the year,
Revenues Of [all product categories] $14.0 Billion, Up 8% Versus Prior Year Fueled By 5% Organic Growth | Organic Growth Led By Tools & Storage (+7%) | 3 Pt. Contribution From Acquisitions
I’m going to have to find a transcript of the earnings call, or something of the sort, to see what this slide was all about. Craftsman has been a big emphasis in last year’s investor info, shedding light on SBD’s plans for the brand, and no doubt some of 2019’s plans were mentioned in today’s earnings call.
A lot of the “external headwinds” facing Stanley Black & Decker cannot be ignored – and hasn’t been ignored by financial press and investors given what happened today – but I think they’re in a good place as far as the tool industry is concerned.
More Info(SWK Investor Materials)
I think that 2019 will be an interesting year for tools, as SBD and other brands introduce new products and technologies. The financial headlines that were hitting my phone had me a little worried, but after reading the source materials and the articles, I can see why “external headwinds” is mentioned 6 times in their official full year and Q4 2018 earnings report.