NEW BRITAIN, Conn. — Stanley Black & Decker reported earnings from continuing operations of $1.43 per share for its second quarter. The bottom-line result grew 17.2% year over year, beating the Zacks Consensus Estimate of $1.37.
The company generated net revenues of $2.88 billion, up nearly 1% year over year, but below the Zacks Consensus Estimate of $2.93 billion. The year-over-year result benefited from 1% positive price impact.
Stanley Black & Decker reports its revenues under three segments. Following are the second quarter results for each division as reported on July 25:
• Construction & Do-It-Yourself (48.3% of second-quarter revenues): Revenues inched up 0.1% to about $1.4 billion.
• Industrial (30.8% of second-quarter revenues): Sales advanced 3.2% to $889.2 million.
• Security (20.9% of second-quarter revenues): Reported revenues of $601.7 million, down 0.4% year over year.
The security segment profit rate excluding charges was 11.3%, up 80 basis points from the 2013 second quarter rate of 10.5%; and, 220 basis points higher than this year’s first quarter rate. The year over year increase in the rate relates primarily to improved operating performance within North America, the company reported.
In a statement, Stanley Black & Decker President and COO Jim Loree said efforts to improve the security division’s margins are beginning to pay off following recent sluggishness, especially in European markets.
“Europe’s performance in the quarter combined with continued favorable momentum in North America gives us further confidence in our ability to drive year over year operating margin growth from security in the second half of 2014,” Loree said.