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By Anandita Mehrotra (Reuters) -Stanley Black & Decker on Wednesday forecast annual profit below estimates, hurt by tepid demand for its power tools, and said it was preparing measures to mitigate a hit from the recent tariffs announced by U.S. President Donald Trump. Shares of the company, which supplies to retailers as well as automotive and aerospace customers, were down 3.8% in early trading. The shares lost about 18% in 2024 as the Connecticut-based company navigated a challenging automotive market and inflationary pressures that have pinched consumer spending. In the last few days, Trump has ordered sweeping tariffs against Mexico, Canada and China, but paused levies on the United States' two neighbours.
The moves have brought uncertainty into corporate planning and supply chains. Stanley Black & Decker said it expects to respond to any tariffs with "supply chain and price actions" to blunt a possible hit to margins. While the company does not foresee the tariffs having a long-term effect, it expects an annual impact of $90 million to $100 million if the 10% tariffs on China were to remain in place, a company executive said during the post-earnings call. "Aggregate market demand is expected to remain muted but relatively stable in the first half with the potential for a positive inflection later in the year," CEO Donald Allan, Jr. said in a statement.
Stanley Black & Decker expects 2025 adjusted profit to be $5.25 per share, plus or minus 50 cents, compared with Wall Street expectations of $5.38, according to data compiled by LSEG. However, the company beat Wall Street estimates for fourth-quarter revenue and profit, boosted by a cost-reduction program that it had put in place. It reported an adjusted quarterly profit of $1.49 per share, topping analysts' average estimate of $1.27, according to data compiled by LSEG. Total revenue for the fourth quarter came in at $3.72 billion, beating expectations of $3.58 billion. (Reporting by Anandita Mehrotra in Bengaluru; Editing by Shreya Biswas)
Stanley Black & Decker sees weak 2025 profit, prepares to blunt tariff impact
February 05, 2025 01:38 PM GMT | By EODHD
