We're in the midst of another fiscal earnings reporting period, with many well-known industrial distributors and suppliers posting their latest quarterly performance. Here's a roundup of the key figures posted by Stanley Black & Decker, 3M, Anixter International and Illinois Tool Works.
Stanley Black & Decker
Stanley Black & Decker reported its 2017 third quarter fiscal results on Tuesday, led by continued strong total and organic sales growth year-over-year (YoY). The company posted Q3 overall sales of $3.3 billion, up 14.5 percent YoY, while organic sales were up approximately 7 percent. That follows Q2's total sales growth of 10.1 percent and matches Q2's organic growth.
The company said the 14 percent total sales growth was driven by a 9 percentage point increase from acquisitions, a 7-point increase from volume and 1-point increase from currency, which combined to considerably offset a 3-point decline from divestitures.
Total Q3 profit of $274 million increased 10.0 percent. Gross margin of 38.0 percent was up from 37.5 percent a year earlier. Excluding charges, Q3 gross margin was 38.2 percent — up 60 base points.
By business segment in Q3:
Tools & Storage sales of $2.32 billion jumped 22.2 percent YoY, driven by a 13-percentage point gain from acquisitions and a 9-point gain from volume. Excluding charges, profit rate of 17.8 percent increased 40 base points YoY.
Industrial sales of $503.6 million increased 8.9 percent YoY, driven by an 8-point gain from volume. Engineered Fastening organic sales increased 6 percent, while Infrastructure organic sales jumped 15 percent. Profit rate of 18.6 percent increased 120 base points YoY.
Security sales of $476.8 million decreased 8.8 percent YoY, driven by a 14-point decline from the divestment of the company's Mechanical Security business, partially offset by a 2-point gain from currency and 3-point gain from acquisitions. North America organic sales dipped 1 percent, while Europe grew 1 percent. U.S. profit rate of 11.3 percent was down from 13.7 percent a year earlier.
"Tools and Storage led the way with 9 percent organic growth on strong, innovation-fueled operational execution and generally supportive markets around the world," Stanley Black & Decker president and CEO James Loree said. "Looking forward, our tools franchise continues to benefit from a series of growth catalysts including DC brushless, FlexVolt, the Newell Tools acquisition and beginning in mid-2018, the Craftsman brand. Industrial organic growth of 8 percent reflects Engineered Fastening's continued expansion in the automotive and industrial markets, as well as strong growth in both of our infrastructure businesses. Our acquisitions added nine points of revenue growth as the integrations continue to progress at or ahead of plan."
Manufacturing conglomerate 3M posted its Q3 results on Tuesday, which included healthy sales growth for its Industrial group.
The St. Paul, MN-based company posted total Q3 sales of $8.2 million, up 6.0 percent year-over-year, organic sales grew 6.6 percent in local currency as all business segments and geographic areas had increases. Total Q3 profit of $1.43 billion increased 7.5 percent.
By business segment in Q3:
- Electronics and Energy total sales grew 13.1 percent, and grew 13.2 percent organically in local currency. Operating profit of $394 million increased 29.9 percent YoY.
- Industrial total sales grew 6.2 percent, and grew 6.1 percent organically. Operating profit of $614 million increased 3.1 percent YoY. Sales increased in advanced materials, industrial adhesives and tapes, and separation and purification.
- Health Care total sales grew 7.7 percent, and grew 6.9 percent organically. Operating profit of $471 million increased 9.3 percent YoY.
- Consumer total sales grew 2.2 percent, and grew 1.9 percent organically. Operating profit of $307 million decreased 3.2 percent YoY.
- Safety and Graphics total sales grew 1.9 percent, and grew 6.0 percent organically. Operating profit of $410 million increased 10.5 percent. Sales increased in personal safety, roofing granules and transportation safety, while commercial solutions declined.
On a geographic basis in Q3:
- Asia Pacific sales grew 10.7 percent, and 12.8 percent organically
- EMEA sales grew 7.4 percent, and 4.0 percent organically
- Latin America/Canada sales grew 5.6 percent, and 5.3 percent organically
- U.S. sales grew 2.0 percent, and 3.6 percent organically
Electrical and wire products distributor Anixter International reported its 2017 Q3 fiscal results on Tuesday, led by a modest increase in overall and organic sales.
The Glenview, IL-based company posted total Q3 of $2.0 billion, up 3.1 percent YoY, while organic sales ticked up 1.5 percent. Total profit of $37.6 million was down from $$0.3 million a year earlier, while gross margin of 19.7 percent was down from 20.3 percent.
By business segment in Q3:
- Network & Security Solutions sales of $1.05 billion were flat, while organic sales decreased 7.0 percent. Total sales increased 1.9 percent from Q2.
- Electrical & Electronic Solutions sales of $555.0 million increased 3.7 percent YoY, while organic sales dipped 0.6 percent
- Utility Power Solutions sales of $412.2 million increased 11.0 percent YoY, while organic sales increased 10.5 percent
Illinois Tool Works
Glenview, IL-based industrial supplier Illinois Tool Works reported its Q3 fiscals on Monday, led by a solid increase in overall sales and a modest increase in organic sales.
The company posted Q3 total sales of $3.6 billion — up approximately 4 percent YoY, while organic sales increased 2 percent.
Organic sales increased in six of ITW's seven business segments, led by Specialty Products (+5 percent), Welding (+4 percent), and Construction (+4 percent).