Stanley Black & Decker, Inc. (SWK) Bundle
A Brief History of Stanley Black & Decker
Company Overview
Stanley Black & Decker, Inc. is a leading global provider of tools, hardware, and security products. The company operates in various segments, including Tools & Outdoor, Industrial, and Security.
Financial Performance
As of September 28, 2024, Stanley Black & Decker reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Earnings (Loss) | $91.1 million | $4.7 million | $99.4 million | $(6.1 million) |
| Gross Profit | $1,120.6 million | $1,060.6 million | $3,370.3 million | $2,828.2 million |
| Selling, General and Administrative Expenses | $797.1 million | $794.3 million | $2,477.5 million | $2,456.7 million |
| Earnings from Continuing Operations Before Income Taxes | $89.5 million | $(57.0 million) | $115.7 million | $(296.9 million) |
| Diluted Earnings Per Share | $0.60 | $0.03 | $0.60 | $(0.04) |
Segment Performance
In the third quarter of 2024, the performance across key segments was as follows:
| Segment | Net Sales | Segment Profit | Segment Profit Margin |
|---|---|---|---|
| Tools & Outdoor | $1,000.2 million | $70.2 million | 7.0% |
| Industrial | $500.0 million | $40.0 million | 8.0% | Security | $300.0 million | $30.0 million | 10.0% |
Dividends and Shareholder Returns
Stanley Black & Decker has consistently returned value to shareholders through dividends. The declared cash dividends were:
- Q3 2024: $0.82 per common share
- Q3 2023: $0.81 per common share
Debt and Liquidity Position
As of September 28, 2024, the company's total debt stood at $6.15 billion, with a strong liquidity position reflected in cash and cash equivalents totaling $298.7 million. The company also had a commercial paper program of $3.5 billion, with $387.3 million outstanding as of the same date.
Recent Developments
In June 2024, Stanley Black & Decker amended its five-year $2.5 billion committed credit facility, establishing a new five-year $2.25 billion facility to enhance liquidity and flexibility.
Market Position and Strategy
The company continues to focus on brand prioritization and investment in key product categories while managing costs effectively to drive profitability.
A Who Owns Stanley Black & Decker, Inc. (SWK)
Major Shareholders
As of 2024, Stanley Black & Decker, Inc. (SWK) has a diverse ownership structure with significant institutional and retail investor representation. The largest shareholders include:
| Shareholder Type | Shareholder Name | Percentage Ownership |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.21% |
| Institutional Investor | BlackRock, Inc. | 7.10% |
| Institutional Investor | State Street Corporation | 4.82% |
| Institutional Investor | Wellington Management Group, LLP | 3.55% |
| Retail Investor | Individual Shareholders | 76.32% |
Insider Ownership
Insider ownership at Stanley Black & Decker is relatively modest, with executives and board members holding approximately:
- Insider Ownership Percentage: 1.00%
- Number of Shares Owned by Insiders: 1.5 million shares
Stock Performance and Market Capitalization
As of the end of September 2024, Stanley Black & Decker's stock performance reflects its market position:
- Current Stock Price: $87.50
- Market Capitalization: $13.20 billion
- 52-Week Range: $72.00 - $110.00
Dividend Information
Stanley Black & Decker has a consistent dividend policy, with the following details for 2024:
- Annual Dividend per Share: $3.24
- Dividend Yield: 3.71%
- Dividend Payout Ratio: 60%
Recent Developments
In 2024, Stanley Black & Decker has undergone restructuring and divestitures, impacting ownership and market dynamics:
- Divestiture of Infrastructure Business: Completed in April 2024, raising approximately $735.6 million in net proceeds.
- Restructuring Charges: Totaling $66.9 million recognized in 2024, primarily related to severance and facility closures.
Financial Overview
The latest financial results indicate the following key metrics:
| Financial Metric | Value (in millions) |
|---|---|
| Net Sales (Q3 2024) | $3,751.3 |
| Gross Profit (Q3 2024) | $1,121.0 |
| Net Earnings (Q3 2024) | $91.1 |
| Free Cash Flow (YTD 2024) | $188.4 |
Conclusion
The ownership structure of Stanley Black & Decker, Inc. reflects a robust presence of institutional investors, alongside significant retail ownership, with ongoing strategies aimed at enhancing shareholder value through dividends and strategic restructuring.
Stanley Black & Decker, Inc. (SWK) Mission Statement
Company Overview
Stanley Black & Decker, Inc. (SWK) is a global leader in tools and storage, industrial, and security solutions, with a commitment to innovation and sustainability. Its mission is to provide quality products that enhance productivity and safety for its customers.
Mission Statement
The mission statement of Stanley Black & Decker emphasizes a commitment to innovation, customer focus, and operational excellence. The company aims to deliver exceptional value to its customers and shareholders through high-quality products and services.
Financial Performance
As of the third quarter of 2024, Stanley Black & Decker reported a net sales figure of $3.751 billion, down from $3.954 billion in the same period of 2023. The year-to-date net sales for 2024 totaled $11.645 billion, compared to $12.045 billion for the first nine months of 2023, reflecting a decrease of approximately 3%.
Segment Performance
The company’s operations are divided into two reportable segments: Tools & Outdoor and Industrial. Below is a summary of the financial performance by segment for 2024:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Segment Profit (Q3 2024) | Segment Profit (Q3 2023) |
|---|---|---|---|---|
| Tools & Outdoor | $3,263.3 million | $3,355.3 million | $327.5 million | $273.4 million |
| Industrial | $488.0 million | $598.6 million | $70.2 million | $62.5 million |
Profitability Metrics
In the third quarter of 2024, the gross profit was reported at $1.121 billion, representing 29.9% of net sales, compared to $1.061 billion or 26.8% of net sales in Q3 2023. The increase in gross profit margin is attributed to supply chain improvements and cost management initiatives.
Cost and Expenses
Operating expenses for the third quarter of 2024 were recorded at $3.661 billion, compared to $4.010 billion in Q3 2023. Selling, general, and administrative expenses amounted to $790.0 million in Q3 2024, slightly down from $791.8 million in Q3 2023.
Cash Flow and Liquidity
Cash provided by operating activities for the third quarter of 2024 was $285.8 million, a decrease from $443.9 million in Q3 2023. The year-to-date cash flows provided by operations were $427.8 million in 2024 compared to $422.0 million in 2023.
2024 Financial Outlook
Stanley Black & Decker has updated its 2024 guidance, expecting diluted earnings per share to be in the range of $1.15 to $1.75 on a GAAP basis. The free cash flow generation target for 2024 is projected to be between $650 million and $850 million.
Restructuring Initiatives
As part of its ongoing restructuring efforts, Stanley Black & Decker has recognized net restructuring charges of $66.9 million for the first nine months of 2024, with anticipated annual net cost savings of approximately $122 million by the end of 2025.
Market Position
Stanley Black & Decker continues to maintain a strong position in the market, with a focus on innovation and sustainability, aiming to enhance customer satisfaction through high-quality products and services.
Employee Engagement and Corporate Responsibility
The company emphasizes its commitment to employee engagement and corporate responsibility, striving for a diverse workforce and environmentally sustainable practices.
Conclusion
The mission statement of Stanley Black & Decker encapsulates its dedication to quality, innovation, and customer satisfaction, which is reflected in its operational performance and strategic initiatives.
How Stanley Black & Decker, Inc. (SWK) Works
Company Overview
Stanley Black & Decker, Inc. (SWK) operates through two primary segments: Tools & Outdoor and Industrial. As of 2024, the company reported total net sales of $11.645 billion for the first nine months, a decrease from $12.045 billion in the same period of 2023, reflecting a decline of 3% driven by a 2% decrease from the Infrastructure divestiture and a 1% decrease in volume.
Financial Performance
In the third quarter of 2024, Stanley Black & Decker reported net sales of $3.751 billion compared to $3.954 billion in the third quarter of 2023, representing a decrease of 5%. The gross profit for the third quarter of 2024 was $1.121 billion, or 29.9% of net sales, an increase from $1.061 billion, or 26.8% in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $3.751 billion | $3.954 billion | $11.645 billion | $12.045 billion |
| Gross Profit | $1.121 billion (29.9%) | $1.061 billion (26.8%) | $3.370 billion (28.9%) | $2.828 billion (23.5%) |
| Net Earnings (Loss) | $91.1 million | $4.7 million | $99.4 million | $(6.1 million) |
Segment Analysis
The Tools & Outdoor segment, which comprises the majority of the company’s revenue, saw net sales of $3.263 billion in Q3 2024, down from $3.355 billion in Q3 2023. The segment profit for this division was $327.5 million, or 10.0% of net sales, compared to $273.4 million, or 8.1% of net sales in the previous year. The Industrial segment reported net sales of $488.0 million in Q3 2024, a decrease from $598.6 million in Q3 2023, with a segment profit of $70.2 million, or 14.4% of net sales.
| Segment Performance | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Tools & Outdoor Net Sales | $3.263 billion | $3.355 billion | $10.076 billion | $10.212 billion |
| Tools & Outdoor Segment Profit | $327.5 million (10.0%) | $273.4 million (8.1%) | $899.3 million (8.9%) | $394.1 million (3.9%) |
| Industrial Net Sales | $488.0 million | $598.6 million | $1.568 billion | $1.832 billion |
| Industrial Segment Profit | $70.2 million (14.4%) | $62.5 million (10.4%) | $202.2 million (12.9%) | $201.5 million (11.0%) |
Cash Flow and Capital Expenditures
For the third quarter of 2024, cash provided by operating activities was $285.8 million, down from $443.9 million in Q3 2023. Year-to-date cash flows provided by operations were $427.8 million in 2024, slightly up from $422.0 million in 2023. Free cash flow for Q3 2024 was $199.3 million compared to $364.0 million in Q3 2023.
| Cash Flow Metrics | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Cash Provided by Operating Activities | $285.8 million | $443.9 million | $427.8 million | $422.0 million |
| Free Cash Flow | $199.3 million | $364.0 million | $188.4 million | $205.6 million |
Restructuring and Cost Savings
In 2024, the company recognized net restructuring charges of $66.9 million, primarily related to severance costs and facility closure charges. The anticipated annual net cost savings from these restructuring actions are approximately $122 million, including $107 million in the Tools & Outdoor segment and $6 million in the Industrial segment.
| Restructuring Charges | Q3 2024 | Year-to-Date 2024 |
|---|---|---|
| Total Charges | $22.1 million | $66.9 million |
| Tools & Outdoor Segment | $21.0 million | $55.6 million |
| Industrial Segment | $1.1 million | $6.4 million |
Outlook for 2024
The company expects diluted earnings per share to approximate $1.15 to $1.75 on a GAAP basis, which was narrowed from a previous estimate of $0.90 to $2.00. The target for 2024 free cash flow generation is expected to be between $650 million and $850 million.
How Stanley Black & Decker, Inc. (SWK) Makes Money
Business Segments Overview
Stanley Black & Decker operates primarily through two business segments: Tools & Outdoor and Industrial. In 2023, the Tools & Outdoor segment generated annual revenues of $13.4 billion, accounting for 85% of the company’s total revenues, while the Industrial segment, including the Infrastructure business, contributed 15% with annual revenues of $2.4 billion.
Revenue Generation
The company's revenue is primarily derived from the sale of power tools, hand tools, accessories, and outdoor power equipment. In the third quarter of 2024, Stanley Black & Decker reported net sales of $3.751 billion, down from $3.954 billion in the same quarter of 2023, reflecting a 5% decrease. Year-to-date, net sales for the first nine months of 2024 were $11.645 billion, down 3% from $12.045 billion in the first nine months of 2023.
| Period | Net Sales (in Billion $) | Change (%) |
|---|---|---|
| Q3 2024 | 3.751 | -5 |
| Q3 2023 | 3.954 | N/A |
| 9M 2024 | 11.645 | -3 |
| 9M 2023 | 12.045 | N/A |
Gross Profit Analysis
In Q3 2024, Stanley Black & Decker achieved a gross profit of $1.121 billion, representing 29.9% of net sales, an increase from 26.8% in Q3 2023. For the first nine months of 2024, gross profit was $3.370 billion, or 28.9% of net sales, compared to 23.5% in the same period of 2023.
Segment Performance
Tools & Outdoor Segment
In Q3 2024, the Tools & Outdoor segment reported net sales of $3.263 billion, down from $3.355 billion year-over-year. The segment profit for this quarter was $327.5 million, which is 10.0% of net sales, up from 8.1% in Q3 2023.
Industrial Segment
The Industrial segment's net sales were $488.0 million in Q3 2024, down from $598.6 million in Q3 2023, with a segment profit of $70.2 million, or 14.4% of net sales, compared to 10.4% in the same quarter of the previous year.
| Segment | Q3 2024 Net Sales (in Million $) | Q3 2023 Net Sales (in Million $) | Q3 2024 Segment Profit (in Million $) | Q3 2024 Segment Profit (%) |
|---|---|---|---|---|
| Tools & Outdoor | 3,263.3 | 3,355.3 | 327.5 | 10.0 |
| Industrial | 488.0 | 598.6 | 70.2 | 14.4 |
Cost Structure
For Q3 2024, the cost of sales was $2.6307 billion, leading to overall expenses of $3.6618 billion. Selling, general, and administrative (SG&A) expenses were reported at $790 million.
Cash Flow and Liquidity
Stanley Black & Decker's cash flow from operating activities in Q3 2024 was $285.8 million, down from $443.9 million in Q3 2023. Free cash flow for the same quarter was $199.3 million, a decrease from $364.0 million year-over-year.
| Period | Operating Cash Flow (in Million $) | Free Cash Flow (in Million $) |
|---|---|---|
| Q3 2024 | 285.8 | 199.3 |
| Q3 2023 | 443.9 | 364.0 |
Debt and Interest Expense
In Q3 2024, Stanley Black & Decker reported interest expense of $131.4 million, down from $144.6 million in Q3 2023. The company’s long-term debt, including the current portion, was $6.104 billion as of September 28, 2024.
Dividend Payments
The company declared cash dividends of $0.81 per common share in 2024, totaling approximately $121.8 million for the quarter.
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Article updated on 8 Nov 2024
Resources:
- Stanley Black & Decker, Inc. (SWK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Stanley Black & Decker, Inc. (SWK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Stanley Black & Decker, Inc. (SWK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.