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Stanley Black & Decker Inc (SWK) has reported a 3.77 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $255.50 million, or $1.71 a share in the quarter, compared with $265.50 million, or $1.77 a share for the same period last year. Revenue during the quarter went up marginally by 2.64 percent to $2,920.40 million from $2,845.40 million in the previous year period. Gross margin for the quarter expanded 122 basis points over the previous year period to 36.86 percent. Total expenses were 88.88 percent of quarterly revenues, up from 87.84 percent for the same period last year. That has resulted in a contraction of 104 basis points in operating margin to 11.12 percent.
Operating income for the quarter was $324.80 million, compared with $346.10 million in the previous year period.
Stanley Black & Decker’s president and chief executive officer, James M. Loree, commented, “2016 marked another year of strong performance for Stanley Black & Decker. The team delivered above-market organic growth, margin expansion in the face of significant currency headwinds, and outstanding free cash flow conversion. Organic growth for the fourth quarter and full year was a solid 4%, even in the face of a continued decline from Engineered Fastening’s electronics related revenues. We ended the year with an impressive 118% free cash flow conversion and 10.6 working capital turns, ahead of our top-quartile goal of 10 turns.
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $6.85 to $7.05.
Working capital increases sharply
Stanley Black & Decker Inc has recorded an increase in the working capital over the last year. It stood at $1,981 million as at Dec. 31, 2016, up 130.48 percent or $1,121.50 million from $859.50 million on Jan. 02, 2016. Current ratio was at 1.71 as on Dec. 31, 2016, up from 1.31 on Jan. 02, 2016.
Cash conversion cycle (CCC) has increased to 55 days for the quarter from 21 days for the last year period. Days sales outstanding were almost stable at 20 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 36 days for the quarter compared with 38 days for the previous year period. At the same time, days payable outstanding went down to 1 days for the quarter from 38 for the same period last year.
Debt remains almost stable
Stanley Black & Decker Inc has witnessed an increase in total debt over the last one year. It stood at $3,827.40 million as on Dec. 31, 2016, up 0.73 percent or $27.70 million from $3,799.70 million on Jan. 02, 2016. Total debt was 24.42 percent of total assets as on Dec. 31, 2016, compared with 25.04 percent on Jan. 02, 2016. Debt to equity ratio was at 0.60 as on Dec. 31, 2016, down from 0.65 as on Jan. 02, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
