New Britain tool maker Stanley Works Co. said its third-quarter profit fell nearly by two-thirds on continuing weakness in its industrial tools market and an unfavorable comparison with same period last year when the tool maker recorded profit from discontinued operations.
Stanley raised its full-year guidance on improving margins.
Net income of $60.4 million, or 75 cents per share, was down 63 percent from $163 million, or $2.04 per share, in the third quarter of 2008. The 2008 quarter included profit of $1.08 per share from discontinued operations.
Revenue slid 16 percent to $935.5 million from $1.12 billion.
Analysts surveyed by Thomson Reuters expected earnings of 62 cents per share on revenue of $952.6 million.
Of Stanley Works’ three businesses, only its security segment — electronic and mechanical security products, software and other equipment — posted an increase in profit, by 13 percent, to $84 million.
The industrial tool segment posted a profit of $19 million, down 53 percent from the year-ago period. The company blamed weak demand for industrial tools and storage and continued inventory liquidation.
Stanley Works’ construction and do-it-yourself segment posted a third-quarter profit of $48 million, down 11 percent from the year-ago period. (AP)
