Stanley Black & Decker Q2 2020 Earnings Report
Key Takeaways
Stanley Black & Decker's second quarter 2020 results showed a revenue decrease of 16% year-over-year to $3.1 billion due to COVID-19 impacts, though strong cost control and price realization helped mitigate the decline. Diluted GAAP EPS was $1.52, and excluding charges, diluted EPS was $1.60. The company is proceeding with its $1 billion cost reduction program and realized $175 million in savings during the quarter.
Revenues totaled $3.1 billion, down 16% versus prior year due to market-driven declines from COVID-19.
Operating margin rate was 8.9%; excluding charges, the operating margin rate was 12.8%.
Diluted GAAP EPS was $1.52; excluding charges, diluted EPS was $1.60.
The company realized $175 million in savings during the second quarter as part of its $1 billion cost reduction program.
Stanley Black & Decker
Stanley Black & Decker
Stanley Black & Decker Revenue by Segment
Forward Guidance
The company withdrew its full year guidance in April and will continue to refrain from providing such guidance at this time. Information about the Company’s second half 2020 scenario planning will be provided on today’s earnings call. The Company is proceeding with the $1 billion cost reduction program, announced on April 2, which we continue to expect will deliver $500 million in cost savings in 2020.
Positive Outlook
- The company is proceeding with its $1 billion cost reduction program.
- The company realized $175 million of savings during the second quarter.
- New growth opportunities have emerged during this crisis in Tools & Storage and Security businesses.
- The company will pursue new growth opportunities with targeted investments in the second half of 2020.
- The company remains focused on maintaining a strong operational foundation and balance sheet.
Challenges Ahead
- The company withdrew its full year guidance in April due to the uncertain macro environment.
- Organic revenues across all regions were impacted by reduced business activity related to COVID-19.
- Europe and emerging markets were impacted by decreased economic activity caused by rolling COVID-19 geographic lockdowns, customer closures and diminished consumer confidence.
- Engineered Fastening organic revenues were down 35% due to lower global automotive light vehicle and general industrial production.
- Infrastructure organic revenues were down 19% from lower volumes in Attachment Tools and Oil & Gas.
Revenue & Expenses
Visualization of income flow from segment revenue to net income