Stanley Black & Decker Q2 Profit Up, Lifts Full-year Outlook - Update

(RTTNews) - Tool maker Stanley Black & Decker, Inc. (SWK) Friday reported a rise in second-quarter profit, amid marginal increase in sales and improved margins. The company also raised its earnings per share outlook for full year 2014.

For the second quarter, net earnings attributable to common share owners increased to $216.5 million or $1.36 per share from $187.1 million or $1.18 per share last year.

Normalized earnings per share from continuing operations were $1.43, up from $1.22 in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $1.37 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter edged up 1 percent to $2.89 billion from $2.86 billion in the previous year. Wall Street expected revenues of $2.94 billion for the quarter.

The company said its organic sales growth was negatively impacted by unusually weak emerging markets, as well as a delayed and shortened CDIY North American outdoor product season.

Operating margin improved to 13.5 percent from 11.5 percent a year earlier.

The company raised its 2014 earnings per share outlook to a range of $5.50 to $5.60 on an adjusted basis or $5.38 to $5.48 on a GAAP basis. Wall Street currently is looking for fiscal year 2014 earnings of $5.43 per share, on annual revenues of $11.48 billion.

The company said in April that it expected 2014 earnings per share to be $5.35 to $5.50 on an adjusted basis or $5.23 to $5.38 on a GAAP basis.

Chairman and CEO John Lundgren said, "Our focus for the balance of 2014 remains on continuing to deliver improved operating performance including both organic growth and margin expansion as well as achieving our previously communicated capital allocation objectives."

SWK closed Thursday's regular trading at $85.02 on the NYSE.