Stanley Black & Decker Adj. Profit Beats Estimates, Boosts Full-year Sales View

(RTTNews) - Machine tool maker Stanley Black & Decker, Inc. (SWK) Friday reported a higher second-quarter profit, reflecting 12 percent growth in net sales. Normalized earnings, which excluded charges, as well as revenues topped analysts' expectations.

The firm said it expects a stronger second half organic growth performance for the overall company, with rebounding margin rates, and reiterated earnings per share outlook for the full year. Organic net sales are now expected to increase an additional two points to 4 to 5 percent compared to its prior outlook.

John Lundgren, chairman and CEO of the company said, "During the quarter we achieved strong organic growth particularly within CDIY and Industrial, bolstered by excellent growth across the emerging markets."

In the CDIY segment, net sales increased 9 percent from last year and net sales from the Industrial segment climbed 28 percent.

In the second quarter, net earnings attributable to common shareowners increased to $187.1 million or $1.18 per share from $154.8 million or $0.92 per share in the same quarter last year.

Earnings from continuing operations were $1.23 per share, higher than $0.75 per share reported in the year-ago quarter.

Excluding charges, normalized earnings per share were $1.21 for the recent quarter, while it was $1.13 per share a year ago. On average, 14 analysts polled by Thomson Reuters expected the company to earn $1.19 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter climbed 12 percent to $2.87 billion from $2.57 billion in the same quarter last year. Twelve analysts had consensus revenue estimate of $2.81 billion for the quarter.

The company attributed the rise in revenues to a volume growth of 6 percent and acquisitions of 7 percent, partially offset by price decline of 1 percent.

For full-year 2013, the company continues to expect earnings per share to be in the range of $5.40 to $5.65. Including all charges, the company anticipates earnings per share to be about $4.46 to $4.71. Analysts expect the company to report earnings of $5.44 per share for the year.

Organic net sales are now expected to increase by 4 to 5 percent from 2012, compared to the prior estimate of 2 to 3 percent increase.

SWK closed Thursday's regular trading at $82.51 on the NYSE.