New acquisitions propel Stanley Q1 results
New Britain, Conn.-based Stanley Black & Decker saw revenues grow, largely as the result of acquisitions.
The company reported first-quarter revenues of $2.49 billion, an increase of 3% over the prior-year period. Volume and currency each declined approximately 1%, while acquisitions added 4% to that total.
Net earnings declined to $81.1 million for the quarter, compared with $121.8 million in the same quarter last year.
“Despite a far from robust external environment, we remain confident in our ability to achieve our full year 2013 EPS, sales and free cash flow targets while continuing to invest in organic revenue growth," said CEO John Lundgren. "Profitability in our [construction and DIY] business continues to improve, and we expect to realize increased sales in this segment going forward as a result of new product introductions and customer listings, as well as our increasing presence in emerging markets."
In the company's construction and DIY segment, net sales increased 2% due to a 3% increase from acquisitions and a 1% decline from currency. Both volume and price were relatively flat. The flat organic growth can be attributed to a later start to the North America outdoor season due to a much colder-than-average March in many parts of the region, as well as softer markets in Latin America, which offset growth in many of the other emerging markets, such as China, Southeast Asia, Russia and Turkey.
The company expects the headwinds encountered in the first quarter will lessen in the second. "The segment remains solidly on track for mid-single digit organic growth for the full year," according to the earnings release.