Stanley Black & Decker said Wednesday that net income slumped in the second quarter as the New Britain toolmaker and security-systems supplier took a number of charges related to its buyout of Black & Decker, The Associated Press reports.
Stanley reported earnings of $45.8 million, or 28 cents per share, in the quarter. That compares with earnings of $69.5 million, or 87 per share, in the same period last year. Excluding one-time charges related to the buyout of Black & Decker, Stanley would have earned $206.1 million, or $1.24 per share.
Revenue jumped 157 percent to $2.37 billion due to the inclusion of sales from the recently acquired Black & Decker. On a pro forma basis, assuming Black & Decker results were included in both reporting periods, revenue rose 13 percent.
At 11 a.m., Stanley shares were up 92 cents, or 1.75 percent to $53.54.
Stanley Works acquired Black & Decker in a $3.5 billion stock buyout approved in March. The deal included a variety of inventory charges, facility closures, severance and other costs that amounted to $160.3 million in the quarter.
The company boosted its 2010 earnings forecast to between $3.35 and $3.55 per share, up from a range of $3.10 to $3.30 per share. The forecast excludes a 21 cent per share tax benefit related to the company's one-time charges.
Stanley said the second-quarter performance was driven primarily by customer restocking, "which is not expected to continue in the second half of the year at the same pace."