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.

If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!

Security Is Our Business, Too

For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Commercial Integrator + Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add to your bottom line.

A FREE subscription to the top resource for security and integration industry will prove to be invaluable.

Subscribe Today!

Get Our Newsletters