Stanley Black & Decker's John Lundgren To Retire As CEO; Raises 2016 EPS View

(RTTNews) - Stanley Black & Decker (SWK) announced that Chairman and Chief Executive Officer John Lundgren, who will turn 65 in September, will retire as CEO after more than 12 years with the Company, effective July 31, 2016. Lundgren will continue as Chairman of the Board until the end of the year and serve as Special Advisor to the Company through April 30, 2017.

James Loree, currently President and Chief Operating Officer, will succeed Lundgren as President and CEO on August 1, 2016 and join the Board at that time.

John Lundgren has been Chairman and Chief Executive Officer of Stanley Black & Decker since 2004, when he joined the Company (then Stanley Works) in that position. Since that time the Company's revenues have more than quadrupled and market capitalization has more than quintupled. Lundgren began his business career in brand management at the Gillette Corporation in Boston, MA and later held functional and general management positions in the U.S. and Europewith Georgia Pacific and predecessor companies.

Jim Loree joined Stanley Black & Decker (then Stanley Works) in 1999 as VP and Chief Financial Officer after 19 years with General Electric Company (GE). He was named EVP and CFO in 2002, EVP & Chief Operating Officer in 2009 and President & COO in 2013.

Stanley Black & Decker said that it raised 2016 earnings per share outlook to a range of $6.30 - $6.50 from the prior estimation of $6.20 - $6.40 and maintained free cash flow conversion estimate of approximately 100%. Analysts polled by Thomson Reuters expect the company to report earnings of $6.36 per share for fiscal year 2016. Analysts' estimates typically exclude special items.

The company revised 2016 earnings per share outlook reflects the net favorable impact of stronger organic growth within Tools & Storage business, which is expected to more than offset weaker Industrial growth, combined with incremental cost and productivity actions, which in the aggregate more than offset higher currency headwinds and other incremental costs.

The company increased its organic growth outlook for the year from approximately 3% - 4% to approximately 4%.