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.
2018 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.