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Stanley Black & Decker sees weak 2025 profit, prepares to blunt tariff impact
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Stanley Black & Decker sees weak 2025 profit, prepares to blunt tariff impact
Feb 5, 2025 5:40 AM

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.

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