Stanley Black & Decker makes 3 per cent less turnover

Stanley Black & Decker announced its financial results for the second quarter of 2024 yesterday. Revenue in the second quarter amounted to USD 4.0 bn (approx. EUR 3.7 bn), a decrease of 3 per cent compared to the previous year. In organic terms, however, this represents sales growth of 1 per cent, explained Donald Allan Jr, President and CEO. The tool manufacturer's gross margin improved compared to the previous year due to lower inventory reduction costs, benefits from supply chain reorganisation and reduced shipping costs.

Gross margin in the second quarter was 28.4 per cent, up from last year's 22.4 per cent gross profit, according to Donald Allan Jr. Adjusted gross margin was 29.2 per cent compared to 23.6 per cent last year. According to Allan, EBITDA in the second quarter was 5.3 per cent of sales, while adjusted EBITDA was 10.7 per cent of sales. Cash flow from operating activities totalled USD 573 mn in the second quarter, while free cash flow amounted to USD 486 mn.

The company, which includes the Stanley, Black & Decker, Dewalt and Craftsman brands, expects to achieve pre-tax savings of USD 1.5 bn by the end of 2024 and USD 2 bn by the end of 2025. The company was also able to reduce its debt by USD 1.2 bn in the second quarter.

Donald Allan Jr. commented positively on the results and emphasised the strong results of the Dewalt and Aerospace Fasteners brands as well as the Outdoor division amidst a weak consumer backdrop. He expressed confidence in the future positioning of the company and the achievement of higher organic sales growth rates, profitability and cash flow. The company has updated its guidance for the full year 2024 and now expects free cash flow between USD 650 million and USD 850 million.