Stanley Black & Decker Withdraws FY20 Outlook Amid COVID-19 - Quick Facts

(RTTNews) - Providing an update on its current business operations and financial condition amid the expanding impact of Coronavirus (COVID-19), Stanley Black & Decker, Inc. (SWK) said Thursday that it is withdrawing its previously announced financial guidance for the full year 2020.

The company anticipates that COVID-19 driven demand disruptions will negatively impact results in fiscal 2020 and will provide an updated outlook in its first quarter earnings release on Thursday, April 30, 2020.

On an operational basis, the company has begun a comprehensive cost reduction and efficiency program. It will focus on adjusting its supply chain and manufacturing labor base to match the current demand environment and substantially reduce indirect spending from the current about $1.7 billion annually.

The company will also look to reduce non-essential staffing and capture the significant raw material deflation opportunity that has recently emerged.

In addition, the company plans to temporarily suspend acquisition-related activity and reduce capital expenditures until the demand outlook is clearer.