Stanley Black & Decker(SWK)
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Stanley Black & Decker(SWK) - 2022 Q3 - Earnings Call Transcript
2022-10-27 15:42
Financial Data and Key Metrics Changes - Third quarter revenue was $4.1 billion, up 9%, driven by Outdoor Equipment acquisitions [12] - Organic revenue declined 2%, an improvement from the first half of the year, with a 14% growth in the Industrial business [12][13] - Adjusted EPS for the third quarter was $0.76, with operating margin at 6.2%, pressured by input cost inflation [16] - The company revised its 2022 adjusted diluted EPS range down to $4.15 to $4.65 due to ongoing demand changes and foreign exchange impacts [19][62] Business Line Data and Key Metrics Changes - Tools & Outdoor segment revenue grew 10% to $3.5 billion, with acquisitions contributing nearly $600 million [45] - Industrial segment achieved 14% organic growth, with adjusted operating margin at 11.1%, up 340 basis points year-over-year [52] - Power Tools declined organically by 2%, while Hand Tools and Outdoor business saw declines of 7% and 12% respectively [49][51] Market Data and Key Metrics Changes - North America consumer demand softened, while Professional Construction and Industrial customer demand remained strong [11] - European markets faced challenges due to high customer inventory levels and inflation, impacting retail market pressure [14][46] - U.S. retail point-of-sale remained consistent, supported by professional demand despite softer DIY consumer demand [13] Company Strategy and Development Direction - The company is focusing on cash generation and inventory reduction, with a strategic choice to curtail production to improve cash flow [20][21] - Plans to redeploy $300 million to $500 million over the next three years to advance innovation and electrification [23] - The company aims to achieve gross margins of 35% plus by 2025 through supply chain transformation and operational excellence [28][61] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macroeconomic environment but expressed optimism about cash generation and inventory reduction efforts [10][72] - The company expects gross margin recovery to begin in the second quarter of 2023, with a focus on improving fill rates and customer service levels [60][72] - Management is preparing for various demand scenarios in 2023, balancing production levels with inventory reduction [110] Other Important Information - The company successfully completed divestitures of Electronic Security, Access Technologies, and Oil & Gas businesses, reducing debt by $3.3 billion [17][18] - The company is targeting $1.5 billion in cash flow generation through inventory liquidation and cost savings initiatives [84][85] Q&A Session Summary Question: Concerns about free cash flow and gross margin recovery - Management expressed strong conviction about cash flow generation in Q4, despite negative free cash flow in Q3, and discussed the impact of production curtailments on gross margins [77][79] Question: Improvements in market-facing metrics and promotional activity - Management reported significant improvements in fill rates and on-shelf product availability, with increased promotional activity expected in 2023 [88][91] Question: Inventory absorption and discounting strategies - Management indicated a substantial impact on margins due to production pullbacks, but emphasized a balanced approach to inventory liquidation without excessive discounting [95][100] Question: Pricing strategy amidst declining commodity prices - Management highlighted the importance of maintaining price increases despite commodity deflation, as high-cost inventory needs to be sold [102][106] Question: Production curtailments and demand outlook - Management clarified that production curtailments were primarily driven by cash generation needs and inventory reduction, with a cautious outlook on demand for 2023 [108][110]
Stanley Black & Decker (SWK) Presents at Morgan Stanley 10th Annual Laguna Conference
2022-09-16 19:40
. 19 . In the subject of the subject of the states of the states of the status and the states of the states of the states of the status of the states of the states of the states Morgan Stanley 10th Annual Laguna Conference D o n A l l a n | P r e s i d e n t & C E O S e p t e m b e r 1 4 , 2 0 2 2 StanleyBlack&Decker Cautionary Statement | --- | --- | |------------------------------------------------------------------------------------|---------------------------------------| | | | | Certain Statements Cont ...
Stanley Black & Decker(SWK) - 2022 Q2 - Earnings Call Transcript
2022-07-28 16:34
Stanley Black & Decker, Inc. (NYSE:SWK) Q2 2022 Results Conference Call July 28, 2022 8:00 AM ET Company Participants Dennis Lange - Vice President of Investor Relations Donald Allan - President and Chief Executive Officer Corbin Walburger - Vice Presidentand Interim Chief Financial Officer Conference Call Participants Jeffrey Sprague - Vertical Research Partners Timothy Wojs - Robert W. Baird Nigel Coe - Wolfe Research Michael Rehaut - JPMorgan Chase Julian Mitchell - Barclays Bank Operator Welcome to the ...
Stanley Black & Decker (SWK) Presents At UBS Global Industrials and Transportation Conference
2022-06-13 18:07
. And an a sual a sua see a comment of UBS Global Industrials And Transportation Conference D o n A l l a n | P r e s i d e n t a n d C F O J u n e 7 , 2 0 2 2 StanleyBlack&Decker Cautionary Statement | --- | --- | |------------------------------------------------------------------------------------|---------------------------------------| | | | | Certain Statements Contained In This Presentation Are Forward Looking. These Are | | | Based On Assumptions Of Future Events Which May Not Prove To Be Accurate. | ...
Stanley Black & Decker (SWK) Investor Presentation - Slideshow
2022-05-18 15:58
Financial Performance & Objectives - Stanley Black & Decker's 2021 revenue was $15.6 billion, with a market capitalization of $18.5 billion and a cash dividend yield of 2.6%[5] - The company aims for long-term financial goals including organic revenue growth of approximately 4-6% and total revenue growth of approximately 10-12%[8] - The company targets EPS growth of approximately 10-12%, excluding acquisition-related charges, and Free Cash Flow (FCF) greater than or equal to net income[8] - Tools & Outdoor segment revenue was $12.8 billion in 2021, representing 25% of the company's total revenue[6] - Industrial segment revenue was $2.5 billion in 2021, also representing 25% of the company's total revenue[6] ESG Strategy & Commitments - Stanley Black & Decker commits to carbon neutrality and beyond by 2030, aiming to reduce absolute Scope 1 and Scope 2 carbon emissions by 100% against a 2015 baseline[24] - The company plans to innovate products to enhance the lives of 500 million people by 2030[24] - Stanley Black & Decker aims to empower 10 million makers by 2030 through STEAM education, vocational skills, and makerspace training[24] - The company commits to increase supplier diversity spend from 3% to 10% by 2025 with minority- and women-owned businesses[24] Governance & Diversity - The board comprises 36% women and 18% racial/ethnic diversity[51] - The company proactively lowered the minimum threshold for shareholders to call a special meeting from 35% to 25%[51, 54]
Stanley Black & Decker (SWK) Investor Presentation - Slideshow
2022-05-05 17:45
INVESTOR PRESENTATION Version 05.03.2022 cearrywen Cautionary Statements This presentation contains "forward-looking statements," that is, statements that address future, not past events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as: "expect," "anticipate," "intend," "plan," "believe," "seek," or "will." Forward-looking statements by their nature address matters that are, to different ...
Stanley Black & Decker(SWK) - 2022 Q1 - Earnings Call Transcript
2022-04-28 16:10
Stanley Black & Decker, Inc. (NYSE:SWK) Q1 2022 Earnings Conference Call April 28, 2022 8:00 AM ET Company Participants Dennis Lange - Vice President of Investor Relations Jim Loree - Chief Executive Officer & Director Don Allan - President & Chief Financial Officer Conference Call Participants Jeff Sprague - Vertical Research Julian Mitchell - Barclays Michael Rehaut - JPMorgan Tim Wojs - Baird Nigel Coe - Wolfe Research Joe O'Dea - Wells Fargo David MacGregor - Longbow Research Eric Bosshard - Cleveland R ...
Stanley Black & Decker(SWK) - 2022 Q1 - Earnings Call Presentation
2022-04-28 15:37
First Quarter 2022 Overview A p r i l 2 8 , 2 0 2 2 StanleyBlack&Decker Participants *Non-GAAP Financial Measures. See Appendix For Reconciliation of GAAP To Non-GAAP Measures Used in This Presentation. Jim Loree CEO Don Allan President & CFO Dennis Lange VP, Investor Relations 1Q'22 OVERVIEW | 2 Cautionary Statement Certain Statements Contained In This Presentation Are Forward Looking. These Are Based On Assumptions Of Future Events Which May Not Prove To Be Accurate. They Involve Risk And Uncertainty. Act ...
Stanley Black & Decker (SWK) Investor Presentation - Slideshow
2022-02-26 07:49
Company Overview - Stanley Black & Decker's 2021 revenue was $15.6 billion, with a market cap of $31 billion and a cash dividend yield of 1.7%[8] - Tools & Storage segment accounted for $12.8 billion in revenue in 2021, while the Industrial segment generated $2.5 billion[9] - Approximately 60% of the company's revenues are generated in the U S market[11] Financial Goals and Performance - The company aims for long-term financial goals including ~4-6% organic revenue growth and ~10-12% total revenue growth[15] - The company also aims for ~10-12% EPS growth, free cash flow ≥ net income, and CFROI in the 12-15% range[15] - Stanley Black & Decker has a track record of long-term value creation, with a 967% TSR from January 2000 to December 2021[23, 24] Strategic Initiatives - The company is focused on organic growth, margin expansion, and asset efficiency, driven by the SBD Operating Model[15, 57] - Stanley Black & Decker is pursuing acquisitive growth in the Tool Industry, Outdoor Expansion, and Industrial Segment[27] - Electrification is a significant growth and ESG opportunity, with potential for 3x to 6x higher content $ per electric vehicle[41] 2022 Outlook - The company expects ~7-8% organic growth in 2022, with GAAP EPS of $10.10 - $10.70 and adjusted EPS of $12.00 to $12.50[92] - Free cash flow is expected to approximate $2.0 billion in 2022[93] - The company anticipates a currency headwind of ~$100 million in 2022 due to a strong USD[98]
Stanley Black & Decker(SWK) - 2021 Q4 - Earnings Call Transcript
2022-02-01 14:45
Stanley Black & Decker, Inc. (NYSE:SWK) Q4 2021 Earnings Conference Call February 1, 2022 8:00 AM ET Company Participants Dennis Lange - Vice President, Investor Relations Jim Loree - Chief Executive Officer Don Allan - President & Chief Financial Officer Conference Call Participants Julian Mitchell - Barclays Jeff Sprague - Vertical Research Markus Mittermaier - UBS Josh Pokrzywinski - Morgan Stanley Nigel Coe - Wolfe Research Mike Rehaut - JPMorgan Joe O’Dea - Wells Fargo Operator Welcome to the Fourth Qu ...