Stanley Black & Decker Q4 Profit Falls, Backs 2014 View - Update

(RTTNews) - Tool maker Stanley Black & Decker, Inc. (SWK) Friday reported a sharp fall in fourth-quarter profit, reflecting higher expenses and restructuring charges. Quarterly sales, however, grew 9 percent and beat analysts' expectations. The company also reiterated its 2014 outlook.

For the fourth quarter, the firm posted net income attributable to common share owners of $56.1 million or $0.35 per share, sharply down from $492.1 million or $2.99 per share in the prior year. Earnings from continuing operations were $0.41 per share, compared to $0.83 per share a year earlier.

Excluding charges, quarterly earnings per share amounted to $1.32, while the company posted $1.41 per share last year.

On average, 16 analysts polled by Thomson Reuters expected earnings per share of $1.30 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter grew 9 percent to $2.91 billion from $2.66 billion last year. Fourteen analysts estimated revenues of $2.87 billion for the quarter. Organic growth was 4 percent.

The company attributed the growth in sales to 4 percent rise in volume and acquisitions contributed 6 percent, but was partially offset by currency. Price was flat for the period.

Chairman and CEO John Lundgren stated, "During 2013 we made significant progress driving organic growth throughout the organization and the fourth quarter was no exception as the momentum continued from our organic growth initiatives."

Selling, general and administrative expenses advanced to $703.1 million from $636.6 million in the prior year. The company posted restructuring charges of $135.5 million, higher than $57.4 million a year ago.

For full year 2014, the company still expects adjusted earnings to be in the range of $5.30 to $5.50 per share. Nineteen analysts project earnings of $5.43 a share for 2014.

On a GAAP basis, earnings per share are expected to be in the range of $5.18 to $5.38.

Also, the company believes that its 2014 organic growth would be about 4 percent, including benefits from its organic growth initiatives.

SWK closed Thursday's regular trading at $80.41 on the NYSE.