4/24/2014 5:48:00 PM
NEWS BRIEFS
Fasteners Produce Organic Growth For Stanley Black & Decker
Stanley Black & Decker reported its Engineered Fastening segment, including Emhart Teknologies and Hong Kong-based Infastech, posted 6% organic growth in the opening quarter of 2014, driven by strong global automotive revenues, particularly in Europe and Asia, which resulted in growth at nearly two times the rate of light vehicle production.
“The Infastech integration crossed the one-year mark at the end of February and remains on-plan to achieve both earnings and cost synergy targets.”
Organic sales for the Industrial and Automotive Repair (IAR) business were up 5% as a result of higher volumes in IAR’s European business, and strength within the North American Mac Tools mobile distribution and the MRO vending operations.
Oil & Gas organic growth was up 11% due primarily to North American onshore and global offshore operations. Stanley Black & Decker predicted slower Oil & Gas market growth over the two to three quarters “due to a temporary lull in major onshore pipeline projects.”
Overall Industrial segment revenue rose 16% to $852 million, boosted by a volume gains (5%) and acquisitions (12%), partially offset by currency. The company said pricing was relatively flat for the quarter.
Overall Industrial segment profit excluding charges was $130.3 million, or 15.6%, up 170 basis points from the 1Q’13 rate of 13.9% reflecting favorable volume, productivity gains, cost synergies and cost actions, partially offset by currency and organic growth investments.
“Our CDIY and Industrial businesses continue to demonstrate exceptional performance, having achieved strong organic growth driven by an improved European landscape, healthy automotive demand and our organic growth investments which positioned us for share gain in the quarter,” stated CEO James Loree. “Not only did we achieve impressive top-line results, but the operating margin performance of these businesses was also noteworthy as we mitigated $25 million of currency headwinds with our sharp focus on costs.”
Consolidated Stanley Black & Decker revenue in Q1 gained 6.6% to $2.64 billion, with net earnings nearly doubling to $166.8 million. ©2014 GlobalFastenerNews.com
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