NEW BRITAIN - In what its chief executive officer called an â€śexcellent start for 2017,â€ť Stanley Black & Decker on Friday reported it had more than doubled first-quarter profits over the previous year and sees the potential for additional acquisitions in the pipeline.
The city-based manufacturing giant reported profits from January to March of $393.1 million - $204 million higher than the same period in 2016. Company revenues also jumped in the year - up 5 percent to $2.8 billion.
â€śWe reported robust organic growth of 5 percent and a record 14.2 percent operating margin rate, a 110 basis point expansion,â€ť said James M. Loree, president and CEO of Stanley Black & Decker. â€śOur organic growth was led by 6 percent growth in Tools & Storage, with a 4 percent contribution from Industrial, while Security was modestly positive. We were particularly pleased to see Engineered Fastening exceed its growth projections based on better than expected automotive performance.â€ť
Loree said the company sees â€śa clear path to $100 million a year annual growth for the next decade.â€ť
Stanley last month completed the $900 million acquisition of the Craftsman brand from Sears Holding Corp. The deal gives the company the right to develop, manufacture and sell Craftsman-branded products outside the Sears distribution channels.
Stanley in the same week finalized adding to its portfolio the tools business of Newell Brands for $1.95 billion.
The Newell deal was Stanley Black & Deckerâ€™s first major acquisition since 2013 and the first significant business development under Loree, who became president and CEO in August 2016.
In December, the company confirmed it would sell most of its mechanical security businesses to dormakaba for $725 million.
â€śDuring the quarter, we closed three important transactions â€¦(and) the company is now working intensely to invest in product, brand and commercialization for the Craftsman brand, and to successfully integrate Newell tools, as we remain focused on our diversified industrial portfolio strategy,â€ť said Loree. â€śWe continue to take strategic capital deployment actions for future growth while expanding our operating margin rate.â€ť
Loree said Stanley will likely not seek any new acquisition deals for the remainder of the year, though 2018 may be a different story. In the meantime, the manufacturer, which Loree said makes about 30 percent of all tools sold in the U.S., is focused on reinvigorating its Craftsman and Newell brands.
Stanleyâ€™s history in New Britain dates to 1843. The toolmaker merged with Black & Decker in 2010.
Christopher Fortier can be reached at 860-801-5063 or email@example.com.