The board of directors of tool and storage products maker Stanley Black & Decker announced on Friday that chairman and CEO John Lundgren, 65, will retire from the company effective July 31, to be succeeded by president and COO James Loree on Aug. 1. Loree will also join the board at that time.
Lundgren — Stanley Black & Decker's CEO for more than 12 years — will continue as chairman until the end of the year and serve as special advisor to the company through April 30, 2017.
Lundgren joined the company (then Stanley Works) in 2004 at his current position. He is a board member at Callaway Golf, Staples and is on the executive committee of the National Association of Manufacturers, serving as vice chairman.
"It has been a great privilege to lead this exceptional organization for the past 12 years, and I am proud of all we have accomplished together," Lundgren said. "Today Stanley Black & Decker is stronger, more agile and more innovative than ever before, and that is due in large part to Jim and the entire management team. Morale has never been higher and with the company performing extremely well, there is no better time for us to execute our long-planned management transition strategy. Our future is bright and I am confident the company will continue to thrive under Jim's leadership."
Loree joined the company in 199 as vice president and CFO after 19 years with General Electric. He was named executive vice president in 2002, EVP & COO in 2009, and president and COO in 2013.
"John has been an outstanding mentor and friend, and I am honored to succeed him as CEO at such an exciting time in our Company's history," Loree said.
Along with the leadership announcement, Stanley Black & Decker also released its 2016 second quarter financial results on Friday.
The company posted total sales of $2.9 billion, up 2.3 percent year-over-year, with organic sales up 4 percent. Profit of $271.5 million jumped 19.5 percent, while operating margin rose 140 base points.
- Tools & Storage Q2 sales of $1.9 billion increased 5 percent year-over-year. Organic sales grew 7 percent in North America, 14 percent in Europe and 4 percent in emerging markets. "Share gains in North America continued amidst a still healthy underlying U.S. construction tool market aided by solid commercial execution and new products, overcoming modest pressure within industrial channels," the company said.
- Security Q2 sales of $538 million increased 1 percent. Organic sales declined 2 percent in North America and grew 3 percent in Europe.
- Industrial Q2 sales of $463 million decreased 6 percent. Engineered Fastening organic sales slumped 4 percent, driven by lower electronics volumes attributable to one major customer. Infrastructure organic sales sunk 11 percent due to "a slowdown in oil & gas off-shire project activity and the impact of a difficult scrap steel market on hydraulic tools volumes."