The Stanley Works today said third-quarter profit soared 80 percent as the New Britain tool maker raised prices to help offset economic weakness and a soft housing market that have crimped demand for the company’s products.
Profit rose 80 percent to $164.5 million, or $2.06 per share, from $91.4 million, or $1.09 per share, last year.
Sales edged higher to $1.12 billion from $1.11 billion last year, helped by acquisitions, currency benefits, and 7 percent higher sales in its security-products segment.
Analysts surveyed by Thomson Reuters expected earnings of 97 cents per share and sales of $1.15 billion.
At 11 a.m., Stanley’s shares traded at $36.93, up 97 cents, or 2.7 percent.
“Our priorities are to preserve our earnings base and strong cash flow during this period through a sharp focus on the key operating levers of cost management and asset efficiency,” Stanley’s Chairman and Chief Executive John F. Lundgren said in a statement.
The company said higher prices offset about 75 percent of inflation during the quarter.
The company forecast $3.75 per share in profit for full-year 2008, expecting volume in the second half of the year to decline more than in the first half.
Analysts expect profit of $3.84Â per share and sales of $4.55 billion. (AP)
