Stanley Black & Decker reported Engineered Fastening organic revenues rose 1% in the third quarter of 2018 “as industrial & automotive fastener penetration gains were partially offset by the expected impact from lower automotive system volumes.”

Consolidated Stanley Black & Decker revenue increased 4% to $3.5 billion, which included organic growth of 4%. Q3 gross margin was 35.4%, hurt by commodity inflation, foreign exchange and tariffs.

M&A related and other charges Q3 totaled $85.4 million, primarily related to restructuring, deal and integration costs, as well as a non-cash fair value adjustment and inventory step-up charge.

“As we shift to 2019, we are now preparing for the carry over effect of the 2018 headwinds,” stated CFO Donald Allan Jr. “We will continue to pass on these input cost increases to our customers as price increases. Additionally, we are taking actions to adjust our supply chain and cost structure.”

Sales from the company’s Industrial segment, which includes Stanley Engineered Fastening, grew 9.7% to $1.64 billion in the first nine months of 2018, with segment profit down 6.5% to $254.4 million. Web: StanleyBlackandDecker.com