Stanley Black & Decker Announces Quarterly Loss
Stanley Black & Decker reported a loss for the first quarter, driven primarily by one-time charges associated with the merger with Black & Decker Corp. On an adjusted basis, earnings came in above Wall Street consensus. Revenues for the period grew 38 percent due mainly to the inclusion of Black & Decker’s results.
Net loss attributable to shareholders was $108.6 million or $1.09 per share compared to a net profit of $38.3 million or $1.80 per share in the comparable quarter of last year.
One-time charges for the quarter included a non-cash inventory step-up charge of $42 million, merger-related restructuring costs primarily associated with severance of employees of $90 million and one-time costs of $49 million and $32 million related to certain executive compensation charges.
Normalized net income attributable to shareholders, which excludes one-time charges related primarily to the Black & Decker merger, was $70.1 million or $0.70 per share, up from $37.7 million or $0.47 per share in the prior-year period that included a negative $0.04 impact due to the acquisition of ADT France.
The New Britain, Conn.-based company’s net sales grew 38 percent to $1.3 billion from $913.0 million in the year-ago period. Analysts expected revenue of $1.10 billion for the quarter.
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