4/28/2010
NEWS BRIEFS
Production Growth, Restocking Boost Fastener Sales at Stanley Black & Decker
Stanley Black & Decker reports sales at its Industrial segment, including Emhart Teknologies, grew 22% to $287 million during the opening quarter, while segment profit jumped 54% to $38 million.
“Unit volume was up 2% as customer supply chain restocking in many regions of the world was evident,” the company stated.
Unit volume in Europe grew 6%, a development the company termed “particularly encouraging.” Both Europe and U.S. sales were driven by industrial distribution customer restocking.
“Segment profit improved both sequentially and versus prior year to 13.2%, from 11.3% in 4Q’09 and 10.4% in 1Q’09, as modest top line growth combined with a significantly reduced overhead cost structure produced strong operating leverage.”
In the legacy Fastening and Assembly Systems segment, organic sales increased approximately 30% for the quarter. Sales to the global automotive industry increased amidst a surge in global automotive production with a favorable mix toward mid- and full- size vehicles, particularly in Europe.
Sales increased in the industrial business as global industrial production continued to rise. The legacy segment’s operating margin increased to approximately 14% from 2% in 1Q’09 with the businesses posting double-digit profitability in all regions of the world as the 2009 restructuring actions continued to take hold.
Overall net sales for Q1 jumped 38% to $1.3 billion.
The new company was formed by the March 12 merger of Stanley Tools and Black & Decker. ©2010 GlobalFastenerNews.com
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