Stanley Black & Decker (SWK) has reported an 8.83 percent rise in profit for the quarter ended Oct. 01, 2016. The company has earned $248.90 million, or $1.68 a share in the quarter, compared with $228.70 million, or $1.52 a share for the same period last year. Revenue during the quarter went up marginally by 1.86 percent to $2,882 million from $2,829.50 million in the previous year period. Gross margin for the quarter expanded 132 basis points over the previous year period to 37.62 percent. Total expenses were 87.06 percent of quarterly revenues, down from 87.61 percent for the same period last year. This has led to an improvement of 54 basis points in operating margin to 12.94 percent.
Operating income for the quarter was $372.80 million, compared with $350.70 million in the previous year period.
Stanley Black & Decker’s president and chief executive officer, James M. Loree, commented, "For the third quarter, Stanley Black & Decker continued its consistent track record of outperformance. The Company achieved modestly above-market organic growth and continued margin expansion amid challenging operating conditions through excellent execution of its world-class franchises and brands. We also continued to make strategic investments for future growth, highlighted by the Newell Tools acquisition, which continues our global expansion in the tools market."
For financial year 2016, Stanley Black & Decker projects diluted earnings per share to be in the range of $6.40 to $6.50.
Operating cash flow improves significantly
Stanley Black & Decker has generated cash of $650 million from operating activities during the nine month period, up 83.56 percent or $295.90 million, when compared with the last year period. The company has spent $281 million cash to meet investing activities during the nine month period as against cash outgo of $197.60 million in the last year period.
The company has spent $390.80 million cash to carry out financing activities during the nine month period as against cash outgo of $279 million in the last year period.
Cash and cash equivalents stood at $420.80 million as on Oct. 01, 2016, up 43.47 percent or $127.50 million from $293.30 million on Oct. 03, 2015.
Working capital declines
Stanley Black & Decker has witnessed a decline in the working capital over the last year. It stood at $799.10 million as at Oct. 01, 2016, down 6.10 percent or $51.90 million from $851 million on Oct. 03, 2015. Current ratio was at 1.23 as on Oct. 01, 2016, down from 1.25 on Oct. 03, 2015.
Cash conversion cycle (CCC) has decreased to 8 days for the quarter from 59 days for the last year period. Days sales outstanding were almost stable at 53 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 44 days for the quarter compared with 94 days for the previous year period. At the same time, days payable outstanding was almost stable at 89 days for the quarter, when compared with the previous year period.
Debt comes down
Stanley Black & Decker has recorded a decline in total debt over the last one year. It stood at $3,917.30 million as on Oct. 01, 2016, down 8.99 percent or $387 million from $4,304.30 million on Oct. 03, 2015. Total debt was 24.92 percent of total assets as on Oct. 01, 2016, compared with 27.12 percent on Oct. 03, 2015. Debt to equity ratio was at 0.64 as on Oct. 01, 2016, down from 0.75 as on Oct. 03, 2015. 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
