New Britain-based toolmaker Stanley Black & Decker says its business continues to feel the impact of tariffs, despite the recent Supreme Court ruling on the Trump administration’s tariff regime.
The tariffs struck down by the court, which were imposed under the federal International Emergency Economic Powers Act, have been replaced by temporary, 10% import surcharges, which remain in effect. Meanwhile President Donald Trump has threatened to introduce new, higher tariffs under a clause used to penalize foreign unfair trade practices.
“Our underlying tariff costs would be virtually the same by August as they were prior to the Supreme Court ruling in February,” Stanley Black & Decker Chief Financial Officer Pat Hallinan said Wednesday during an earnings conference call.
Stanley reported first-quarter net income of $59.6 million, or 39 cents-per-share, exceeding Wall Street expectations.
Revenues came in at $3.85 billion for the period.
Hallinan said the company continues to monitor the global economic situation.
“Since the start of the conflict in the Middle East we have seen inflationary cost pressures in resins and freight,” he said. “We have also seen meaningful inflation in recent months in battery metals and tungsten.”
The company has raised prices to offset the impact of tariffs and said those increases will remain in place. CEO Chris Nelson said the company continues to monitor consumer demand amid economic uncertainty.
“As those inflationary factors become more apparent in the back half or the middle of the year, we’ll decide what that means for pricing in the latter part of the year,” Nelson said.
During the quarter, Stanley Black & Decker announced the closure of its last manufacturing plant in New Britain, with the layoff of 300 workers.
It also completed the $1.8 billion sale of its aerospace components business Consolidated Aerospace Manufacturing.
Stanley Black & Decker expects full-year earnings in the range of $4.90 to $5.70 per share.
