Stanley Black & Decker sales up 9%

Stanley Black & Decker said its first quarter sales increased by 9 percent to $2.4 billion compared to the same period last year.

Stanley Black & Decker posted a profit of $158.7 million, or 92 a share, compared with a prior-year loss of $108.6 million, or $1.11 a share. Excluding merger-related charges during both quarters, adjusted earnings grew to $1.08 from 70 cents.

In the CDIY segment, Latin America and Asia drove 1Q revenue and profit growth with double-digit gains, while volumes in North America were up mid single-digits. Pro forma organic sales volumes for the combined hand and power tool businesses grew 3%. Organic sales for Hand Tools, Fasteners & Storage were flat as a soft retail channel in North America offset strength in Latin America, Asia and Europe.

Net sales in the Security segment increased 17% versus 1Q'10. Acquisition growth (+12%), unit volume (+4%), and currency (+1%) drove the improvement.

Organic sales for the legacy Stanley Industrial businesses rose 17%. Price had a favorable 2% impact, while currency was flat. The strong top line performance was driven by Industrial and Automotive Repair (IAR), which enjoyed double-digit growth in every region of the world, strength in all channels in North America and continued market share gains. The legacy Black & Decker Engineered Fastening business delivered organic pro forma sales growth of approximately 12% driven by increased automotive production in North America and Asia, as growth in China more than offset any weakness in Japan resulting from temporary customer shutdowns.

"March 12 marked the one year anniversary of the Stanley Black & Decker combination. We are pleased with how the integration has progressed so far and are reiterating that the continuation of this success remains our top priority," said Stanley Black & Decker's president and CEO, John F. Lundgren. "As previously stated, our cost synergies are forecasted to be at an annualized rate of $460 million as we enter 2013, up from our original forecast of $350 million. Our plans to achieve $300 - $400 million in revenue synergies by 2013 remain on track."