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October 29, 2024

‘Choppy’ markets impact results for Stanley Black & Decker

Contributed Stanley Black & Decker's New Britain headquarters

Stanley Black & Decker CEO Donald Allan Jr. says he doesn’t see consistent improvements in demand for his company’s products until the second half of 2025.

Allan was speaking to investors as the New Britain-based toolmaker announced its third quarter results, saying the company is currently seeing a “slow, choppy market.”

Stanley posted third-quarter earnings per share of $1.22, above the consensus estimate of $1.05. But revenue fell 5% to $3.75 billion, missing the $3.8 billion expected by Wall Street.

The company said its DeWalt line of professional tools performed well, as did its aerospace segment. But those improvements were offset by weaker results from consumer tools and automotive.

Stanley is still in the midst of a global cost-cutting program, including headcount reductions, which it hopes will help save $1.5 billion by the end of 2024, and $2.5 billion by the end of 2025.

Stanley says it continues to focus on reshaping its cost structure and driving organic growth.

Allan said on a conference call with analysts that he’s optimistic that demand will start to turnaround over the next year because of interest rate cuts in many geographies.

“We expect choppy markets will extend into the front half of next year until interest rate reductions have a greater effect and the U.S. election result is known and settled,” he added.

The company has tightened its guidance for full-year earnings.

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