Stanley Black & Decker’s President and CEO, James M. Loree, commented, “The Company delivered 4% organic growth, 14.5% operating margin and 6% adjusted EPS growth in the quarter while coping with $135 million of pre-tax external
headwinds (3.9% of sales) from input cost inflation, currency and tariffs. During the quarter, the 2018 impact of these external pressures increased by $50 million,
causing us to trim our 2018 EPS outlook by $0.25 at the mid-point, still up 9% year-over-year. We are taking cost actions totaling $250 million as well as additional
pricing actions to preserve our ability to produce 2019 earnings growth. The cost actions will be substantially complete by year-end 2018 and the majority of the
pricing actions will be implemented in early first quarter 2019.
“We have an outstanding array of revenue growth catalysts in place for 2019 and beyond to support continued strong financial performance and we will not allow the financial benefit from them to be eroded by external factors outside of our control.
The catalysts include (1) the accelerating Craftsman program rollout which we now expect to deliver $1 billion in incremental revenue significantly faster than prior expectations, (2) a new exclusive brand partnership with a major home center (announced in a separate release), (3) our growing e-commerce share gains, (4)
a robust emerging market growth program, (5) growing revenue synergies from the Lenox/Irwin acquisition and (6) continued revenue benefits from FlexVolt and
new innovations. In addition, the recently announced IES transaction shouldprovide an additional $300 - $400 million source of 2019 inorganic growth.
“Our seasoned, capable management team has stepped up with agility and speed to address these external issues which could have otherwise potentially cast a cloud over this outstanding growth story.”
Stanley Black & Decker, Inc. - Investor Relations - Press Release
