Stanley Black & Decker quarter 3 revenues expanded 11% to $4.3 billion, with all segments contributing to 10% organic growth. Continued strong demand for tools helped buoy the results.
Growth wasn’t solely down to price inflation – net sales were up 11% versus the prior year in terms of volume (+8%), price (+2%) and currency (+1%).
Stanley Black & Decker segment breakdown
Tools & Storage net sales were up 14% in terms of volume (+11%), price (+2%) and currency (+1%). All regions delivered organic growth; North America +9%, Europe +20% and emerging markets +28%.
Industrial net sales were up 1% versus Q3 2020 as price (+2%) and currency (+1%) were offset partially by volume (-1%). Engineered Fastening organic growth was down slightly by 1% as strong industrial growth was offset but market-driven aerospace declines and lower automotive OEM production – thanks to the semi-conductor shortage.
"We are pleased to deliver 10% organic growth and record third quarter revenues as customer demand remains robust across the majority of our end markets," stated James M. Loree, Stanley Black & Decker's CEO. "Our multi-year growth story remains compelling given the positive secular demand trends and unique opportunities ahead, which have been further enhanced by our recently-announced MTD and Excel acquisitions. We continue to invest in innovation, manufacturing automation, inventory and our supply chain to fuel our growth, and I am confident that our company is positioned for success and top-quartile performance as a world leading innovator with an elevated commitment to ESG.
"We are prioritizing meeting demand in a universally difficult supply chain environment and are actively addressing the inflationary trends impacting the business with new targeted pricing actions and increased productivity measures. I want to thank our 56,000 employees for their efforts that have enabled us to navigate the dynamic operating environment to serve our customers," concluded Loree.
Donald Allan Jr., President and CFO, commented: "Our updated full year 2021 guidance calls for organic revenue growth of 16% - 17% and, at the midpoint, adjusted EPS expansion of 22% versus prior year and 31% versus 2019. Our new round of price increases and surcharges to address the cost inflation that built rapidly in the third quarter will begin to offset higher costs exiting this year and provides the setup for higher margins and operating profit growth in 2022. We are maintaining our investment levels to support our growth catalysts, accelerate our margin resiliency initiatives and expand the supply chain to deliver significant revenue growth in 2022 and beyond."
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