Stanley Black & Decker (NYSE: SWK), New Britain, CT, reported sales for the second quarter of $2.9 billion, an increase of 12 percent compared to the same period a year ago, attributable to volume (up 6 percent) and acquisitions (up 7 percent), partially offset by price (down 1 percent). Organic sales grew 5 percent. Profit increased 20.9 percent to $187.1 million.
In the CDIY segment, sales increased 9 percent compared to 2012’s second quarter. First-quarter headwinds relating to the North America outdoor market and a softer Latin America market dissipated in the second quarter. Strong organic volumes were achieved in North America, primarily driven by promotions, new product introductions and a strengthening residential construction market, as well as within the emerging markets. Europe volumes were relatively flat. Excluding charges, overall segment profit was 15.1 percent, down slightly from the prior year.
Sales in the industrial segment rose 28 percent. In North America, volume growth was driven by the MRO vending growth initiative as well as strength within Mac Tools mobile distribution, which more than offset the impact of spending cuts on IAR’s US Government business. Oil & Gas was up organically an impressive 43 percent on growing North American onshore strength and the impact of offshore growth initiatives. Overall segment profit excluding charges was slightly below the 2012 levels.
Sales in security increased 2 percent year-over-year. The CSS North America business grew 1 percent organically for the quarter. Similar to the prior quarter, CSS Europe declined 5 percent organically. Both North America and Europe exited the quarter with positive order momentum and growth in backlog, with orders in the North America business up high single digits and in Europe up low double digits from the prior-year quarter. Security segment profit excluding charges was 10 percent, 310 basis points lower than the prior year.
CEO John F. Lundgren said, “During the quarter we achieved strong organic growth particularly within CDIY and industrial, bolstered by excellent growth across the emerging markets. We are also encouraged by positive second quarter security order trends experienced in both North America and Europe which bode well for our second half security performance.
“As a result of these factors, we anticipate a stronger second half organic growth performance for the overall company accompanied by rebounding margin rates,” Lundgren said.
For the first six months, sales were $5.4 billion, an increase of 7.3 percent. Profit decreased 3 percent to $268.2 million.
