Stanley Black & Decker (NYSE: SWK), New Britain, CT, reported first quarter sales of $2.6 billion, up 1 percent over the same period a year ago. Organically, sales grew 8 percent. Profit from continuing operations increased slightly to $162.3 million.
In the first quarter of 2015, the company combined the CDIY business with certain complementary elements of the industrial and automotive repair and healthcare businesses (formerly part of the industrial and security segments, respectively) to form one Tools & Storage business.
During the quarter, Tools & Storage sales increased 3 percent as a result of volume (+9 percent) and price (+1 percent), partially offset by currency (-7 percent). Organic growth was particularly strong in North America (+15 percent), which continued to benefit from healthy underlying tool demand across the construction and industrial channels as well as share gains from new products and brand extensions aided by strong execution at the customer level. Europe (+9 percent) maintained its trend of strong organic growth as new products, an expanded retail footprint and solid commercial momentum continued to generate share gains in many markets, in spite of a challenged overall economic recovery.
Industrial sales decreased 2 percent year-over-year in the first quarter, as volume (+6 percent) was more than offset by currency (-8 percent). Engineered Fastening achieved double digit organic growth (+12 percent) driven by strong global automotive and electronics sales. Infrastructure organic sales declined 15 percent due to decreasing Oil & Gas sales from delayed or suspended pipeline construction activity offset by modest growth within Hydraulic Tools.
Sales in Security decreased 6 percent versus the first quarter of 2014, as organic growth of 2 percent driven by volume (+1 percent) and price (+1 percent), wassignificantly impacted by currency (-8 percent). Organic growth within North America and emerging markets of 2 percent was primarily a result of strong automatic doors sales and improved performance in the North American commercial locks business which returned to growth after five quarters of organic declines. Europe's organic growth rate was 1 percent, the second consecutive quarter of flat or positive organic growth, led by higher installation sales.