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Stanley Black & Decker(SWK) - 2024 Q3 - Quarterly Results
SWKStanley Black & Decker(SWK)2024-10-29 11:05
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Financial Performance - Net sales for Q3 2024 were 3,751.3million,adecreaseof5.13,751.3 million, a decrease of 5.1% compared to 3,953.9 million in Q3 2023[1] - Gross profit increased to 1,120.6million,representing29.91,120.6 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 4.7millioninQ32023,reflectingasignificantimprovement[1]−Year−to−datenetsalesfor2024reached4.7 million in Q3 2023, reflecting a significant improvement[1] - Year-to-date net sales for 2024 reached 11,645.2 million, down from 12,044.6millioninthesameperiodof2023[7]−Year−to−datenetearningsfromcontinuingoperationsfor2024were12,044.6 million in the same period of 2023[7] - Year-to-date net earnings from continuing operations for 2024 were 91.4 million, down from 433.7millionin2023[12]CashFlowandAssets−Thecompanyreportedafreecashflowof433.7 million in 2023[12] Cash Flow and Assets - The company reported a free cash flow of 199.3 million for Q3 2024, down from 364.0millioninQ32023[5]−Totalassetsdecreasedto364.0 million in Q3 2023[5] - Total assets decreased to 22,481.8 million as of September 28, 2024, from 23,663.8millionattheendof2023[3]−Short−termborrowingssignificantlyreducedto23,663.8 million at the end of 2023[3] - Short-term borrowings significantly reduced to 387.4 million from 1,074.8millionattheendof2023[3]−Totalcurrentliabilitiesdecreasedto1,074.8 million at the end of 2023[3] - Total current liabilities decreased to 5,292.3 million from 5,883.2millionattheendof2023[3]EarningsandProfitability−Thecompany’sdilutedearningspersharefromcontinuingoperationswas5,883.2 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 0.03inthesamequarterlastyear[1]−DilutedearningspershareforcontinuingoperationsinQ32024were0.03 in the same quarter last year[1] - Diluted earnings per share for continuing operations in Q3 2024 were 0.60, compared to 0.03inQ32023,reflectingasignificantimprovement[9]−TotalsegmentprofitforQ32024was0.03 in Q3 2023, reflecting a significant improvement[9] - Total segment profit for Q3 2024 was 397.7 million, compared to 335.9millioninQ32023,withanoverallprofitmarginof10.6335.9 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 568.5millioninyear−to−date2023,representinga77.7568.5 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 604.0millioninyear−to−date2023,reflectingagrowthof70.3604.0 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 3,355.3millionyear−over−year,whileIndustrialsegmentsalesfellto3,355.3 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 273.4millioninQ32023,representingaprofitmarginof10.0273.4 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 220.8millioninyear−to−date2023,showingadecreaseof6.9220.8 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 363.4million[16]−Assetimpairmentchargeswere363.4 million[16] - Asset impairment charges were 46.9 million in Q3 2024, down from 124.0millioninQ32023[1]−Assetimpairmentchargesin2024includea124.0 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 152.1million,primarilyduetoreserveadjustmentsfortheCentredaleSuperfundsite[26]StrategicFocus−Thecompanyexpectscontinuedfocusonsupplychaintransformationandcostmanagementstrategiestoenhanceprofitabilitymovingforward[16]−Thecompanyanticipatescontinuedimprovementsinoperationalexcellenceandstrategicsourcinginitiativestoenhanceprofitabilitymovingforward[22]−Supplychaintransformationcostsforyear−to−date2024include152.1 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 88.3millioninyear−to−date2023[25]EBITDA−AdjustedEBITDAforyear−to−date2024is88.3 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]