Tool manufacturer Stanley Black and Decker saw first-quarter profits in its construction and do-it-yourself (CDIY) segment grew by less than 1%, compared with the year-ago period, to hit $157.7 million, the company announced Wednesday. Net sales for the segment saw a 1.4% increase to reach $1.2 billion for the same period.
The New Britain, Conn.-based company attributes the minimal segment bottom-line growth to cost synergies, productivity projects and volume leverage offset by inflation; the net sales increase for the entire segment, including Pfister, was due to a 3% increase in unit volumes partially offset by a 2% decline in currency. Sans mergers and acquisitions charges, overall segment profit was flat as compared with the year-ago period. The segment did see a 3% increase in organic revenue due to low single-digit organic growth in North America and mid-teens growth in Latin America to offset lower volumes in Europe.
The Professional Power Tool and Accessories organic revenue grew at a high single-digit rate, benefiting from the launch of the 2H’11 18/20V MAX lithium ion launch and the launch of the 20V brushless line, the company said.
“We commenced 2012 on solid footing amidst a macroeconomic backdrop filled with mixed signals,” said the company’s president and CEO John F. Lundgren, in a statement. “We are in the final stages of achieving the previously announced annualized cost synergy rate of $485 million as we enter 2013, up from our original forecast of $350 million.”
Overall, the company saw profits drop by 23% to hit $121.8 million for the quarter, despite a 12% increase sales to account for $2.7 billion.