Stanley Black & Decker reported Engineered Fastening organic revenues rose 1% in the final quarter of 2018 “due to higher systems shipments and fastener penetration gains in the automotive business which overcame a decline in global light vehicle production.”
Q4 sales from the company’s Industrial segment, which includes Stanley Engineered Fastening, increased 14% to $548.5 million “as acquisitions (+12%), and volume (+4%) were partially offset by currency (-2%).” Segment profit rate slipped to 13.2% “as productivity gains and cost control were more than offset by commodity inflation, the modestly dilutive impact from the acquisition of Nelson Fasteners and unfavorable mix.”
In April, Stanley Black & Decker completed its $440 million cash acquisition of Nelson Fastener Systems from Doncasters Group. The acquisition further diversifies the Engineered Fastening business into industrial markets.
Elyria, OH-based Nelson Fastener Systems manufactures fasteners for the aerospace, automotive, construction, energy, industrial, marine and military markets. The company generates about $200 million in annual revenue. Web: NelsonFastenerSystems.com
Engineered Fastening posted total growth of 14% in 2018, which included the contribution from Nelson Fasteners. Organic growth for Engineered Fastening was 1% due to higher system shipments and fastener penetration gains in the automotive business, which were partially offset by a decline in global light vehicle production.
“As demonstrated this year, our Fastener business can still grow in this environment as we increase the fastener content within our customers,” stated CFO Donald Allan. “For the year, our auto fastener growth was 6%, over 600 basis points ahead of global production.”
During 2018, Industrial segment sales increased 10.8% to $2.19 billion, while segment profit dropped 6.7% to $322.8 million. Web: StanleyBlack&Decker.com
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