Stanley Black & Decker sees weak 2025 profit, prepares to blunt tariff impact (updated)

Stanley Black & Decker

05/02/2025 15:01

* 
      Company forecasts profit below estimates 
    

        * 
      Plans supply chain actions to counter Trump's tariffs
    

        * 
      Fourth quarter results beat estimates, aided by
cost-reduction
program
    

  
 (Updates share move in para 2, adds comments from post-earnings
call in para 6)
    By Anandita Mehrotra
       Feb 5 (Reuters) - Stanley Black & Decker  SWK.N  on
Wednesday forecast annual profit below estimates, hurt by tepid
demand for its power tools, and said it was preparing measures
to mitigate a hit from the recent tariffs announced by U.S.
President Donald Trump.
    Shares of the company, which supplies to retailers as well
as automotive and aerospace customers, were down 3.8% in early
trading.
    The shares lost about 18% in 2024 as the Connecticut-based
company navigated a challenging automotive market and
inflationary pressures that have pinched consumer spending.
    In the last few days, Trump has ordered sweeping tariffs
against Mexico, Canada and China, but paused levies on the
United States' two neighbours. The moves have brought
uncertainty into corporate planning and supply chains.
    Stanley Black & Decker said it expects to respond to any
tariffs with "supply chain and price actions" to blunt a
possible hit to margins.
    While the company does not foresee the tariffs having a
long-term effect, it expects an annual impact of $90 million to
$100 million if the 10% tariffs on China were to remain in
place, a company executive said during the post-earnings call.
    "Aggregate market demand is expected to remain muted but
relatively stable in the first half with the potential for a
positive inflection later in the year," CEO Donald Allan, Jr.
said in a statement.
    Stanley Black & Decker expects 2025 adjusted profit to be
$5.25 per share, plus or minus 50 cents, compared with Wall
Street expectations of $5.38, according to data compiled by
LSEG.
    However, the company beat Wall Street estimates for
fourth-quarter revenue and profit, boosted by a cost-reduction
program that it had put in place.
    It reported an adjusted quarterly profit of $1.49 per share,
topping analysts' average estimate of $1.27, according to data
compiled by LSEG.
    Total revenue for the fourth quarter came in at $3.72
billion, beating expectations of $3.58 billion.

 (Reporting by Anandita Mehrotra in Bengaluru; Editing by Shreya
Biswas)
 ((Anandita.Mehrotra@thomsonreuters.com;))