Stanley Black & Decker 4Q profit jumps due to sale

Stanley Black & Decker 4th-quarter profit jumps due to business sale gain

Associated Press

NEW BRITAIN, Conn. (AP) -- Stanley Black & Decker's fourth-quarter earnings tripled, mainly on a gain from the sale of its hardware and home-improvement business.

But the tool maker's results from continuing operations fell 15 percent.

The New Britain, Conn., company said Thursday it earned $492.1 million, or $2.99 per share, in the three months that ended Dec. 31. That includes discontinued operations and compares to net income of $164 million, or 98 cents per share, in the last quarter of 2011.

Adjusted earnings amounted to $1.37 per share, not counting charges and results from the sold business.

Revenue climbed 4 percent to $2.67 billion.

Analysts expected, on average, $1.34 per share on $2.60 billion in revenue, according to FactSet.

Stanley recorded a pre-tax gain of $384.7 million on the business sale of its hardware and home-improvement business to Spectrum Brands Holdings Inc. That unit made locksets, hardware and faucets for residential use under brands like Pfister, Baldwin and Kwikset.

Revenue rose from the company's CDIY segment rose 8.3 percent to $1.37 billion in the fourth quarter. That segment includes power tools and licensed products like safety gear, office products and outdoor power equipment. Revenue in its security segment dropped 2 percent to $647 million.

Restructuring charges more than doubled to $57.5 million in the quarter.

The company reported earnings from continuing operations of $130.1 million, down from $153.8 million in the 2011 quarter.

For the full year, Stanley Black & Decker earned $883.8 million, or $5.30 per share, on $10.19 billion in revenue.

The company expects 2013 earnings per share to range between $5.40 and $5.65 per share. Analysts expect $5.81 per share.

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