Stanley Black & Decker's construction and do-it-yourself (CDIY) segment posted a $141.9 million profit in the fourth quarter on sales of $1.27 billion, more than 2.5 times better than Stanley alone did in 4Q09 before it merged with Black & Decker, the tools giant reported today.
Meanwhile, the security segment--which encompasses Black & Decker's hardware and home improvement group, including Kwikset but excluding Pfister--recorded a 14% rise in profit to $349 million a sales climbed 35% to $2.11 billion. The legacy Black & Decker products increased revenues by 1%.
The company credited its growth in CDIY in part to an increase measuring "in the mid-teens" for professional power tools and accessories, particularly the 12V Max lithium ion line, which was being rolled out worldwide. Sales of hand tools, fasteners, and storage rose 4%, primarily because of the popularity of Bostitch hand tools and Stanley storage units, the company said. Revenue from sales of Black & Decker power tools and accessories rose 4%, with a 5% climb in volume undercut by a 1% drop in price.
Profit for the segment for all 2010 roughly tripled to $475.5 million from $154.1 million, while sales jumped 2.4 times to $4.45 billion from $1.3 billion, the New Britain, Conn.-based conglomerate said.
"2010 was a landmark year for Stanley Black & Decker, driven largely by the significant progress we made in integrating Black & Decker," president and chief executive officer John F. Lundgren said in a statement. "Notably, we were able to achieve 7% organic growth for the year on a pro forma basis amid an uncertain economic environment while continuing the integration in a mannner that allowed us to exceed our original cost synergy targets."
When Stanley and Black & Decker merged in March 2010, the united company's management set a goal of achieving $350 million worth of savings. Now it believes the company's cost synergies will hit $425 million by the end of 2012, and it predicts most of the additional $75 million will fall to the bottom line.
Company wide, net profit roughly doubled to $250 million on a 149% rise in net sales to $2.41 billion. It didn't break down sales for the United States alone.