Stanley Black & Decker Lifts Outlook

Stanley Black & Decker Inc. on Thursday boosted its earnings outlook for the year, as improving demand for its tools and storage units helps offset currency impact.

The New Britain, Conn., tool maker also reported better-than-expected results for its second quarter.

Stanley Black & Decker said it now expects per-share earnings of $5.70 to $5.90, up from its previous forecast for $5.65 to $5.85 a share in earnings.

The company has benefited recently from slow recovery in the U.S. housing market, and it also has cut costs to bolster the bottom line. Demand from the construction industry and higher volumes and pricing have recently helped to offset currency volatility.

For the latest quarter, Stanley Black & Decker reported a profit of $227.2 million, or $1.49 a share, compared with $216.5 million, or $1.36 a share, a year earlier.

Earnings from continuing operations grew to $1.54 a share from $1.39 a share.

Sales were essentially flat at $2.87 billion. Currency impact dragged down sales by 8%.

Analysts polled by Thomson Reuters expected per-share earnings of $1.44 and revenue of $2.82 billion.

The company said its gross margin ticked up to 36.9% from 36.7% in the prior-year period, as volume, prices and cost cuts helped offset currency impact.

Stanley Black & Decker's biggest unit by sales—its tools and storage segment—posted a 3.8% increase in revenue to $1.84 billion. The unit benefited from a 10% increase in volume and particular strength in North America.

Industrial sales fell 4.4% to $494 million, and security revenue fell 6.7% to $533 million.

Write to Chelsey Dulaney at [e-mail]

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