Stanley Black & Decker, Inc. reported a decline in net sales for the third quarter of 2024, totaling $3,751.3 million, down 5% from $3,953.9 million in the same period of 2023. Year-to-date net sales also decreased to $11,645.2 million from $12,044.6 million in 2023. The decline was attributed to a 3% decrease in volume, a 2% impact from the divestiture of the Infrastructure business, and a 1% decrease due to foreign currency effects. The Tools & Outdoor segment saw a 3% decrease in net sales, while the Industrial segment experienced an 18% drop, primarily due to the Infrastructure divestiture.
Despite the decrease in sales, the company reported significant improvements in profitability. Earnings from continuing operations before income taxes for Q3 2024 were $89.5 million, a turnaround from a loss of $57.0 million in Q3 2023. Net earnings from continuing operations rose to $91.1 million, compared to $4.7 million in the prior year. Basic and diluted earnings per share from continuing operations were $0.61 and $0.60, respectively, compared to $0.03 in Q3 2023.
The company’s gross profit for Q3 2024 was $1,120.6 million, representing 29.9% of net sales, an increase from 26.8% in Q3 2023. Year-to-date gross profit also improved to $3,370 million (28.9% of net sales) from $2,828 million (23.5% of net sales) in the previous year. The Tools & Outdoor segment's profit increased significantly to $327.5 million in Q3 2024, up from $273.4 million in Q3 2023.
Strategically, Stanley Black & Decker completed the sale of its Infrastructure business to Epiroc AB for $760 million on April 1, 2024, receiving net proceeds of $728.5 million. This divestiture aligns with the company's focus on its core Tools & Outdoor and Industrial businesses. The company has also initiated a Global Cost Reduction Program targeting $2.0 billion in savings by 2025, with a focus on operational efficiency and cash flow generation.
As of September 28, 2024, total assets decreased to $22,481.8 million from $23,663.8 million at the end of 2023. Cash and cash equivalents also fell to $298.7 million from $449.4 million. The company reported net restructuring charges of $22.1 million in Q3 2024, primarily related to severance and facility closures, with expected annual savings of approximately $122 million by the end of 2025.
Overall, while Stanley Black & Decker faced challenges in sales, its profitability metrics showed significant improvement, supported by strategic divestitures and cost-saving initiatives.
About STANLEY BLACK & DECKER, INC.
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