Bostitch Legal Woes Lower Stanley Tools Outlook

Jason Sandefur

An unfavorable legal judgment against its Bostitch fastener brand prompted Stanley Works to lower its fourth-quarter outlook as it braced for the possibility of a mild U.S. recession. Stanley now estimated Q4 earnings of $1.06 to $1.11 a share.
For 2008, Stanley Works said it expects earnings of $4.20 to $4.40 a share. The company expects organic sales to be flat to up 1%, with its industrial segment outperforming its construction and DIY segment.
For 2008, analysts estimated earnings of $4.49 a share on revenue of $4.54 billion.
Stanley’s revised outlook reflects “management’s expectation of a subdued economic environment, including a possible mild and short-lived U.S. recession, as well as continued deterioration of North American markets associated with homebuilding and remodeling,” stated CEO John Lundgren. Web: bostitch.com �2008 FastenerNews.com