Stanley Black & Decker Continues Suspension Of Guidance

(RTTNews) - Stanley Black & Decker (SWK) said the company is experiencing substantial revenue declines early in the second quarter which it currently expects will represent the trough quarter for the year. The company plans to reduce capital expenditures and temporarily suspend acquisition-related activity and share repurchases until the demand outlook is clearer. On April 2, the company withdrew its full year guidance as a result of the uncertain macro environment due to COVID-19.

First quarter earnings per share, excluding charges, was $1.20, reflecting $60 million in external headwinds and Coronavirus related volume declines partially offset by margin resiliency actions. Revenues were $3.1 billion, down 6% from prior year, with a 7% organic decline primarily related to impacts from COVID-19.

The company's cost reduction program, announced on April 2, is currently being implemented and is expected to deliver $1 billion in annualized cost savings with an approximate pre-tax charge of $160 million expected to be primarily recognized during second quarter. Jim Loree and all of the company's most senior executives, as well as all board members, have elected to forego 20% of their ongoing cash compensation.