Stanley Black & Decker (NYSE: SWK), New Britain, CT, reported sales for 2013 of $11 billion, a year-over-year increase of 8 percent. Organically, sales grew 3 percent. Profit fell 44 percent to $490.3 million.
For the fourth quarter, sales were $2.9 billion, up 9 percent over the same period a year ago. Organic sales grew 4 percent. Profit was $56.1 million, compared with year-ago profit of $492.1 million.
During the quarter, CDIY segment sales increased 6 percent year-over-year as a result of volume (+7%) and acquisitions (+1%), partially offset by price (-1%) and currency (-1%). Solid organic growth was experienced in all regions led by emerging markets and Europe. European volumes were strong, up 7 percent with growth in nearly all key countries driven by customer share gains and new product introductions. Emerging markets also grew 8 percent in the face of difficult market dynamics within certain regions, particularly Latin America. Solid organic volumes were achieved in North America, up 5 percent, primarily due to new product introductions, retail promotions and continued strength in the residential construction market.
Industrial segment sales rose 27 percent in the fourth quarter. Unit volumes increased 8 percent, currency was down 1 percent and acquisitions added 20 percent. Pricing was flat for the quarter.
Organic sales for Industrial and Automotive Repair (IAR) increased 5 percent primarily as a result of volume increases in North America and Europe. Consistent with prior quarters, volume growth in North America continued to be driven by the MRO vending organic growth initiative and strength within Mac Tools mobile distribution, as well as new product introductions, which more than offset the impact of budgetary cuts on IAR’s US Government business. European growth was driven primarily by the timing of promotional events.
Engineered Fastening posted record fourth quarter revenues for its legacy Emhart business. Organic growth was 5 percent driven by the global automotive revenues which once again outpaced global light vehicle production. In addition, Infastech continues to progress as planned and is on track to deliver financial commitments.
Oil & Gas posted another strong quarter of impressive organic growth (+39%) driven primarily by a continued rebound by North America onshore operations combined with another strong offshore growth performance.
Sales in Security decreased 2 percent versus fourth quarter 2012 due to volume (-4%) partially offset by price (+1%) and currency (+1%). Organic growth within the CSS North America business was relatively flat. CSS Europe declined 8 percent organically due primarily to continued softness in certain regions, most notably France and Southern Europe. While CSS Europe order rates remain strong in the low double digits, the conversion of backlog in the quarter did not overcome the attrition rates that remained consistent with the third quarter.
Mechanical Access organic sales were down slightly driven by declines within the commercial mechanical lock business due to the year over year impact of the distributor model transition, partially offset by growth within the automatic door business due to successful door conversion wins, new product introductions and emerging market growth.
