Stanley Black & Decker – SWK – Reports 2Q 2012 Results

Stanley Black & Decker (NYSE: SWK) announced second quarter 2012 financial results.

2Q’12 Business & Regional Commentary:

CDIY grew 5% organically, reflective of successful new products and market share gains in almost every region of the world despite the nascent stage housing market recovery in North America and flat-to-contracting related markets throughout Europe. The operating margin rate, excluding Merger & Acquisitions (“M&A”) charges, of 15.7%, was achieved through volume leverage, improved price/inflation recovery, cost synergies and other reductions.

The Industrial segment grew 1% organically as strength in the Engineered Fastening business more than offset European weakness within Industrial & Automotive Repair (IAR) and a weak North American onshore pipeline market. The operating margin rate, excluding M&A charges, was 15.1%, suppressed by IAR volume and cost absorption issues.

SWK – Dividend Increase and Share Repurchase Program

During the quarter, the company executed upon a $200 million share repurchase, equal to approximately 3 million shares of common stock.

The Board of Directors approved a new share repurchase program of up to 20 million shares of the company’s common stock, or $1.2 billion, using the current stock price.

The Board of Directors also approved a 20% increase of the company’s quarterly cash dividend to $0.49 per common share. This marks the 45th consecutive annual dividend increase for the company.

SWK – 2012 Outlook

Weakness in foreign exchange rates created significant headwinds for the company in the second quarter and the situation is expected to continue in the second half. The negative mix impact associated with the significantly greater volumes in the CDIY segment versus the Security & Industrial segments is being offset by $50 million of new cost reduction actions. As a result of the significant foreign exchange headwinds, the company is adjusting its full year earnings per share (EPS) guidance to $5.40 – $5.65, excluding M&A charges, from the prior range of $5.75 – $6.00.

About Stanley Black & Decker – SWK

Stanley Black & Decker (SWK), an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, engineered fastening systems, and more.

More Posts by this author

• Stocks End Higher for a Third Straight Day
• Gold Prices Settle Higher; Silver Prices also Gain
• Stocks Headed for a Higher Finish
• Stocks Remain in Green in Mid-Day Trading
• Travelers – TRV – Pleased with pricing trends across our businesses
• Sallie Mae – SLM – Reports Second-Quarter 2012 Financial Results
• Astoria Financial Corporation – AF – Quarterly Cash Dividend of $0.04 Per Share Declared

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.