New Britain-based manufacturing heavyweight Stanley Black & Decker announced it’s upgrading its fourth-quarter growth assumptions.
Stanley on Wednesday said it now assumes its fourth-quarter growth will reach near 10%, as opposed to 3% to 5% growth it predicted at the end of October. The company is now estimating full-year growth at 7% to 9% from 2019, and full-year cash flow of more than $1 billion (more than the $500 to $900 million previously predicted).
“These revised assumptions are a result of stronger demand across North America, Europe and emerging markets in Tools and Storage as well as a stronger performance in Engineered Fastening and Attachment Tools within Industrial,” the company’s announcement said.
Despite headwinds created by the COVID-19 pandemic and global economic downturn, the New Britain toolmaker posted a 77% increase in third-quarter profits.
In an October earnings call, Stanley CEO Jim Loree said home-bound people engaging in home improvement projects delivered an unexpected spike in sales at home stores and over Stanley’s e-commerce platform.
“People stuck in their homes began doing projects … and [sales] at our retail centers began to skyrocket in May,” Loree said during the call.
Stanley reported $395 million in third-quarter profits, or $2.44 per diluted share, vs. $231 million in profits, or $1.53 per diluted share, in the year-ago period.
The company’s third-quarter sales hit $3.9 billion, about 6% higher than the same period last year.
