Profits in Stanley Black and Decker's construction and do-it-yourself (CDIY) segment rose 7% during the third quarter, compared with the same period a year ago, to $169.9 million, the company announced on Monday. Net sales also increased 5.5% during the quarter to $1.34 billion.
The New Britain, Conn.-based tool manufacturer attributed net sales growth to increases in unit volumes, currency, and a decrease in divestiture costs, all while prices remained unchanged.
Organic sales for CDIY, excluding any divestitures and its Pfister brand, under which it manufactures faucets, was 5%. Organic growth for the quarter was driven by double-digit unit volume growth in Latin America and Asia combined with sales growth of more than 20% for professional power tools. Volumes in Europe also improved, but remained "modestly soft."
"Our ability to drive above market organic growth was clear again during the quarter," said executive vice president and COO James M. Loree. "Professional power tools grew over 20% during the quarter in a market that was subdued."
The company's Pfister brand continues to suffer as sales fell 22% during the quarter as a repercussion of the loss of SKUs at a major customer during the first quarter.
With the hand tools, fasteners, and storage section, the DeWalt hand tool line, which launched last spring, coupled with strong growth in Latin America, were not enough to overcome softer than expected demand in the North American and Independent retail channels.
Overall, net earnings at Stanley Black and Decker jumped 26%, compared with the same period last year, to $155.3 million. Net sales increased 11% to $2.64 billion.
"We are encouraged with the results our businesses continue to achieve in the midst of the current macroeconomic backdrop," said president and CEO John F. Lundgren. "With little to no market growth in many of the industries and developed regions where we have a presence, it is successful new product introductions and ongoing value propositions that have resulted in the market share gains crucial to our company's success."