Tool maker Stanley Black & Decker raises adjusted profit forecast
Oct 27 (Reuters) - Stanley Black & Decker raised its full-year adjusted profit outlook on Friday, helped by cost cuts it implemented to cushion a hit from softened demand for tools.
The company provides hand tools, power tools and industrial products to home improvement retailers, construction businesses and aerospace manufacturers.
The Connecticut-based company now expects a full-year adjusted profit between $1.10 and $1.40 per share, compared with $0.70 to $1.30 per share expected previously.
"We are creating strong momentum with our cost-reduction program, delivering $880 million in inventory reduction and $675 million of pre-tax run-rate cost savings year-to-date, both ahead of our initial plans," finance chief Patrick Hallinan said in a statement.
Consumers have cut back on discretionary spending as inflationary pressures and shrinking budgets have impacted demand for do-it-yourself tools, hurting suppliers like Stanley, Black & Decker.
Stanley Black's adjusted profit of $1.05 per share for the third quarter ended Sept. 30 came in above analysts' estimates of $0.83, according to LSEG data.
Revenue was down 4% at $3.95 billion, missing estimates of $3.97 billion. (Reporting by Aishwarya Jain; Editing by Maju Samuel)
