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New Britain toolmaker Stanley Black & Decker said Thursday that its first-quarter revenues increased 20%, but it also lowered its earnings outlook for the year as it adjusts to a tough inflationary environment, recent divestitures and the closure of its business in Russia.
Stanley Black and Decker reported first quarter revenue of $4.4 billion and overall profits of $175.3 million, or $1.06 per share.
The higher revenues were primarily driven by outdoor power equipment acquisitions and increased demand for its products, the company said.
The results excluded earnings from Stanley Access Technologies, which the company announced earlier this week that it was selling to Dublin-based Allegion for $900 million. In December, Stanley Black & Decker said it would also sell its commercial electronic and healthcare security business lines to Securitas AB for $3.2 billion.
Stanley Black & Decker CEO Jim Loree said on an earnings call Thursday that the recent divestitures will allow the company to exit its security business, be more focused and make progress on its $4 billion share repurchase program.
Loree said Stanley had $2.3 billion of share repurchases in the first quarter.
The company has also lowered its earnings outlook for the year from a range of $12 to $12.50 per share to a range of $9.50 to $10.50 per share due to inflationary pressures and loss of business in Russia.
Stanley Black & Decker in March announced it was shutting down operations in Russia in response to the country’s ongoing invasion of Ukraine.
"We made tangible progress on our key priorities in the first quarter, most notably price realization and improved component supply, while we continued managing the global supply chain environment,” said Donald Allan Jr., Stanley’s president and CFO. “However, inflationary trends continued during the quarter and we are responding with additional pricing actions to be implemented in the coming weeks. We are adjusting our plan accordingly as well as incorporating the impact of strategic divestitures and the closure of our Russia business into revised guidance.”
Stanley's stock price fell more than 8% on Thursday as of 11:50 a.m. to around $127.
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