Stanley Black & Decker’s Construction and Do-it-yourself (CDIY) segment posted an 18% increase in profit from the same period a year ago to hit $164.7 million during the fourth quarter, the company announced on Jan. 25. Segment sales grew 6% to $1.32 billion during the quarter ended Dec. 31. Segment profit accounted for 12.4% of sales, up from 11.1% during the same period a year ago.
The segment’s results were bolstered by a 7% increase in unit volumes and were offset by a 1% decrease in currency. Product prices remained flat as promotions for older products offset price increases implemented in response to commodity inflation.
The New Britain, Conn.-based manufacturer said new products, double-digit volume growth in emerging markets, and implementation of revenue synergies drove an 8% organic growth, which excluded the Pfister brand, for the fourth quarter. Organic growth in North America was 7%, which combined with a 19% volume growth in Latin America to offset softer volumes in Europe.
The company said its Professional Power Tool and Accessories unit grew at a high single-digit rate. Its Consumer Power Tool division also grew at almost the same rate. Stanley Black & Decker’s Hand Tools, Fasteners, and Storage unit reported organic growth in the mid-single digits.
The Pfister brand, through which the company sells faucets, continued to struggle following a first quarter loss of SKUs at a large customer. Sales at the brand fell 6% during the fourth quarter.
Full year profit in the CDIY segment rose 48% to $681.6 million behind a 20% growth in sales to $5.24 billion. Profit was 13% of sales for the year in the CDIY segment, an increase over 10.5% during 2010.
Overall, net earnings from continuing operations at Stanley Black & Decker jumped 25% during the fourth quarter to reach $174.3 million. Net sales rose 17% to reach $2.8 billion.
For the year, the company more than tripled net earnings from continuing operations to reach $691.2 million. In continuing the upward trend, net sales for the year also grew 25% to $10.4 billion.
Stanley Black & Decker also announced several one-time merger and acquisitions related charges totaling $255.9 million during the year. Most of the charges were related to Stanley’s 2010 merger with Black & Decker and also to the company’s September acquisition of Swedish security solutions provider Niscayah.
Gross margin included $36.8 million of the charges, while $99.2 million were included in the selling, general, and administrative results. About $60.8 million of the charges are included in the company’s operating margin, while the remainder is in corporate overhead. Finally, $51.2 million in charges were included in the “other” section of results, while $68.7 million was part of restructuring charges.
“As we look back on 2011, we are proud of all we accomplished in the face of a choppy and unpredictable global macroeconomic backdrop,” said John Lundgren, Stanley Black & Decker’s president and CEO. “Looking ahead to 2012, our playbook remains the same and we will continue to execute on our states strategy and goals…”