Profits in Stanley Black and Decker's construction and do-it-yourself (CDIY) segment jumped 69% in the second quarter from the same period a year ago to finish at $190.6 million, the company announced Monday. Net sales in that period climbed almost 5% to $1.36 billion.
The New Britain, Conn.-based tool manufacturer said double-digit unit volume growth in Latin America and Asia combined with sales growth of professional power tools and accessories to help drive the CDIY segment's performance and offset weaker sales areas, such as weather-related outdoor products. Organic sales in the company's combined hand and power tool and accessories areas grew 7%. Without giving specifics, it said North American sales of hand tools, fasteners and storage remained weak despite sales growth for those products in other markets.
During the spring, the segment introduced a line of hand tools for its DeWalt brand and began shipping them in June. Stanley Black and Decker's Pfister brand, under which it sells faucets, saw sales fall 21% during the second quarter,. The company attributed the fall at Pfister to a loss of SKUs at a "major customer."
Overall, Stanley Black and Decker reported net sales of $2.62 billion for the quarter, up 11% over second quarter 2010. Net earnings more than tripled to $197.3 million.
"While it would be fair to say that many across the globe would have expected a more substantial economic rebound in developed markets by this point in the year, particularly in residential housing, we were not banking on one and have worked with our business to continue to grow revenues and profits, expand their global footprint and gain market share nonetheless," said president and CEO John F. Lundgren. "We remain encouraged by the revenue and profit growth we are seeing in the emerging markets, particularly Latin America and Asia."
