Feb 5 (Reuters) - Tool maker Stanley Black & Decker ( SWK )
on Wednesday forecast annual profit below estimates,
hurt by tepid demand for its power tools, and said it was
preparing measures to mitigate a hit from the recent tariffs
announced by U.S. President Donald Trump.
Shares of the company, which supplies to retailers as well
as automotive and aerospace customers, were down 4.2% in
premarket trading.
The shares lost about 18% in 2024 as the Connecticut-based
company navigated a challenging automotive market and
inflationary pressures that have pinched consumer spending.
"Aggregate market demand is expected to remain muted but
relatively stable in the first half with the potential for a
positive inflection later in the year," CEO Donald Allan, Jr.
said in a statement.
Stanley Black & Decker ( SWK ) expects 2025 adjusted profit to be
$5.25 per share, plus or minus 50 cents, compared with Wall
Street expectations of $5.38, according to data compiled by
LSEG.
In the last few days, Trump has ordered sweeping tariffs
against Mexico, Canada and China, but paused levies on the
United States' two neighbours. The moves have brought
uncertainty into corporate planning and supply chains.
Stanley Black & Decker ( SWK ) said it expects to respond to any
tariffs with "supply chain and price actions" to blunt a
possible hit to margins.
However, the company beat Wall Street estimates for
fourth-quarter revenue and profit, boosted by a cost-reduction
program that it had put in place.
It reported an adjusted quarterly profit of $1.49 per share,
topping analysts' average estimate of $1.27, according to data
compiled by LSEG.
Total revenue for the fourth quarter came in at $3.72
billion, beating expectations of $3.58 billion.