Stanley Black & Decker(US:SWK)2024-10-29 11:05Financial Performance - Net sales for Q3 2024 were $3,751.3 million, a decrease of 5.1% compared to $3,953.9 million in Q3 2023[1] - Gross profit increased to $1,120.6 million, representing 29.9% of net sales, up from 26.8% in the same quarter last year[1] - Net earnings from continuing operations were $91.1 million, compared to $4.7 million in Q3 2023, reflecting a significant improvement[1] - Year-to-date net sales for 2024 reached $11,645.2 million, down from $12,044.6 million in the same period of 2023[7] - Year-to-date net earnings from continuing operations for 2024 were $91.4 million, down from $433.7 million in 2023[12] Cash Flow and Assets - The company reported a free cash flow of $199.3 million for Q3 2024, down from $364.0 million in Q3 2023[5] - Total assets decreased to $22,481.8 million as of September 28, 2024, from $23,663.8 million at the end of 2023[3] - Short-term borrowings significantly reduced to $387.4 million from $1,074.8 million at the end of 2023[3] - Total current liabilities decreased to $5,292.3 million from $5,883.2 million at the end of 2023[3] Earnings and Profitability - The company’s diluted earnings per share from continuing operations was $0.60, compared to $0.03 in the same quarter last year[1] - Diluted earnings per share for continuing operations in Q3 2024 were $0.60, compared to $0.03 in Q3 2023, reflecting a significant improvement[9] - Total segment profit for Q3 2024 was $397.7 million, compared to $335.9 million in Q3 2023, with an overall profit margin of 10.6%[7] - Tools & Outdoor segment profit for year-to-date 2024 is $1,010.3 million, up from $568.5 million in year-to-date 2023, representing a 77.7% increase[20] - Total segment profit for year-to-date 2024 is $1,028.3 million, an increase from $604.0 million in year-to-date 2023, reflecting a growth of 70.3%[20] Segment Performance - Tools & Outdoor segment reported net sales of $3,263.3 million, down from $3,355.3 million year-over-year, while Industrial segment sales fell to $488.0 million from $598.6 million[7] - Segment profit for Tools & Outdoor increased to $327.5 million in Q3 2024, up from $273.4 million in Q3 2023, representing a profit margin of 10.0%[7] - Industrial segment profit for year-to-date 2024 is $205.6 million, compared to $220.8 million in year-to-date 2023, showing a decrease of 6.9%[20] - Segment profit as a percentage of net sales for Tools & Outdoor increased to 10.0% in year-to-date 2024 from 5.6% in year-to-date 2023[20] Adjustments and Charges - Non-GAAP adjustments for Q3 2024 included $39.9 million, leading to a total adjusted segment profit of $363.4 million[16] - Asset impairment charges were $46.9 million in Q3 2024, down from $124.0 million in Q3 2023[1] - Asset impairment charges in 2024 include a $41.0 million pre-tax impairment charge related to the Lenox trade name[26] - Environmental charges in 2024 amount to $152.1 million, primarily due to reserve adjustments for the Centredale Superfund site[26] Strategic Focus - The company expects continued focus on supply chain transformation and cost management strategies to enhance profitability moving forward[16] - The company anticipates continued improvements in operational excellence and strategic sourcing initiatives to enhance profitability moving forward[22] - Supply chain transformation costs for year-to-date 2024 include $57.8 million in footprint rationalization, down from $88.3 million in year-to-date 2023[25] EBITDA - Adjusted EBITDA for year-to-date 2024 is $1,178.3 million, compared to $787.7 million in year-to-date 2023, marking a 49.5% increase[24]