Stanley Black & Decker reported its 2019 fourth quarter and full-year financial results on Wednesday while also making two sizable announcements — the acquisition of a Boeing fastener supplier, and a leadership transition in the company’s Tools & Storage segment.
The New Britain, CT-based company announced that Jeffery Ansell, executive vice president and president of the company’s Tools & Storage business, has elected to transition his responsibilities during the first half of 2020. Jaime Ramirez, currently SVP and chief operating officer of Tools & Storage, will succeed Ansell effective July 1. After working through the transition period, Ramirez will assume responsibility for a strategic initiative to “revitalize and accelerate growth” of the Black & Decker brand through the end of 2021. He will then become a strategic advisor to the company through the end of fiscal 2023.
"Our Tools & Storage franchise is second to none with the brands, technology, products and team that have made us a leader in our industry for 177 years,” Loree said. “For the last 20 of them, few have contributed more to our success than Jeff Ansell, and we are grateful for that. We respect his desire to spend more time on personal endeavors and appreciate that he will continue as an important part of our team over the next several years. We anticipate a smooth transition to Jaime Ramirez, a 27-year Tools & Storage veteran. With his deep knowledge of our business and customers, global perspective, commitment to innovation and the respect of his colleagues, we are confident that he is the right leader to take our Tools & Storage business into the future."
Stanley Black & Decker announced that it will acquire Consolidated Aerospace Manufacturing (CAM) for up to $1.5 billion, boosting the New Britain, CT-based company's presence in the aerospace and defense fastener market. Get the full details here.
2019 Q4 and full-year results
On the fiscal side, Stanley B&D reported total 2019 sales of $14.4 billion, up 3.3 percent from 2018. Operating margin of 12.2 percent compared with 12.0 percent in 2018, while 2019 operating profit of $1.36 billion increased 10.5 percent. The company’s total 2019 profit of $956 million surged 58.0 percent from 2018.
In Q4, Stanley B&D posted sales of $3.71 billion, up 2.2 percent year-over-year (YoY). Operating margin of 11.8 percent was up considerably from 10.4 percent a year earlier, while operating profit of $289.4 million jumped 28.1 percent YoY. Total Q4 net profit of $199.1 million compared with a net loss of $106.8 million a year earlier.
“Stanley Black & Decker delivered a strong 2019, overcoming approximately $445 million in external headwinds,” Loree said. “We generated above-market organic growth of 3 percent, low single-digit adjusted EPS growth and robust free cash flow in a dynamic operating environment.”
By business segment in Q4:
- Tools & Storage sales of $2.61 billion increased approximately 1 percent YoY, driven by a 2 percentage point gain from volume, partially offset one point by currency. The company said North America saw 3 percent organic growth, powered by the rollout of the Craftsman brand and new product innovation that included DEWALT Flexvolt, Atomic and Extreme. Tools & Storage Q4 profit rate was 16.0 percent.
- Industrial sales of $597 million increased approximately 9 percent YoY, driven by a 13-point gain from acquisitions, partially offset four points by lower volume. The company said Engineered Fastening organic revenues were flat as higher systems shipments and fastener penetration gains were offset by inventory reductions and lower production levels within industrial and automotive customers. Infrastructure organic revenues sunk 17 percent YoY, impacted by “challenging oil & gas pipeline and scrap steel markets.” Industrial Q4 profit rate was 13.6 percent.
- Security sales of $507 million increased approximately 1 percent YoY, driven by a 2-point gain each from volume and price, partially offset by divestments (-2 points) and currency (-1). Four percent organic growth was led by North America (+7 percent), partially offset by business shutdowns in emerging markets. Security Q4 profit rate was 11.2 percent.