Global Fastener News

FIN STOCK REPORT
Stock Report: STANLEY BLACK & DECKER

2014

Stanley Black & Decker reported its Engineered Fastening business achieved 12% organic sales growth in the opening quarter of 2015, driven by strong global automotive and electronics revenues. 

Engineered Fastening  achieved 10% organic growth in the final quarter of 2014, driven by both strong global automotive and electronic revenues. 

Engineered Fastening is part of Stanley Black & Decker’s Industrial segment, which reported Q4 sales rose 1% to $891.4 million, with profit up 1.2% to $136.7 million.

Full-year Industrial segment revenue gained 5.9% to $3.5 billion in 2014, while operating profit increased 21.2% to $553.5 million. 

“Engineered Fastening remains one of our highest priority growth platforms and we see a significant opportunity to expand this business.”

Stanley Black & Decker reported Industrial segment sales, including results from Emhart Technologies and Infastech, rose 3% to $889.2 million in the second quarter of 2014 as a result of volume (+2%) and acquisitions (+1%). Segment profit increased 28% to $150.3 million.

Engineered Fastening posted 2% organic growth driven by strong global automotive revenues partially offset by weaker electronic volume. Organic sales for the Industrial and Automotive Repair (“IAR”) business were up 2% primarily as a result of new product introductions and strength within Mac Tools industrial distribution and Advanced Industrial Solutions, partially offset by weak emerging markets. 

Overall Industrial segment profit rate excluding charges was 17%, up 260 basis points from the 2Q’13 rate of 14.4%, reflecting favorable volume leverage, productivity gains, and cost control, partially offset by currency. 

“Infastech remains on-plan to achieve both earnings and cost synergy targets, which helped drive record operating margin in Engineered Fastening for the quarter,” the company stated.

Overall Stanley Black & Decker sales edged up 1% to $2.9 billion, while net earnings improved 15.7% to $216.5 million

During the first six months of 2014 Industrial segment sales rose 9.1% to $1.74 billion, while segment profit increased 35% to $280.6 million and profit as a percentage of sales improved to 16.1%.

“Our Industrial results were again strong as all key businesses delivered sales and margin growth,” commented COO James Loree.

2013

In 2013 Stanley Engineered Fastening recorded 49% revenue growth, 3% of which was organic and the rest from Infastech, and $61 million of positive operating margin growth. 

“This business has now posted four consecutive record years in sales, operating margins, and working capital turns — a model of consistency,” the company stated.

Full-year Industrial segment sales grew 21% to $3.1 billion, including 49% growth in fastener revenue. Segment profit grew 9.2% to $461 million.

Doubling down on fasteners, Stanley Black & Decker completed its $850 million cash acquisition of Hong Kong-based Infastech in 2013.

Stanley Black & Decker’s engineered fastening platform, anchored by Emhart Teknologies, totals approximately $1.5 billion in annual revenues.

2012

Doubling down on fasteners, Stanley Black & Decker announced its $850 million cash deal to acquire Hong Kong-based Infastech in what is reported to be its last major deal for the next 12-18 months.

With the Infastech acquisition, Stanley Black & Decker’s engineered fastening platform, anchored by Emhart Teknologies, will total approximately $1.5 billion in annual revenues.

With revenues of $580 million and more than 2,000 employees, Infastech is one of the world’s largest producers of engineered mechanical fasteners.

Full-year Industrial segment sales grew 1% organically and 2.7% overall to $2.6 billion, including 9% organic growth in the Engineered Fastening business. Industrial segment profit rate was 16% for 2012.

The company acquired Powers Fasteners in 2012.

2011

Emhart Teknologies, the legacy Black & Decker Engineered Fastening business, delivered its eighth consecutive quarter of double-digit sales growth, with organic revenues rising 18%, “significantly outpacing global light vehicle production, which grew 4%.” 

“Our $900 million engineered fastening business, which largely operates under the Emhart brand, grew 13%, compared to the 3% growth of global light vehicle automotive production, due to new products and increased customer platform penetration, which resulted in strong market share gains,” the company stated in its annual report.

Stanley Black & Decker said fastener revenue in Japan grew “in the mid-teens,” benefiting from a rebound in regional automotive production. 

“Revenues and profits… expanded… due to the ongoing benefits of new products and increased vehicle penetration,” the company stated.

Full-year Industrial segment revenue, including fasteners, rose 32% to $2.5 billion, with profit jumping 56% to $406.3 million. Those results included fourth-quarter sales growth of 9.3% to $640.9 million, with profit up 14% to $97.6 million.

Emhart Teknologies has more than 2,500 employees in 39 operating facilities worldwide. Principal fastener facilities are located in Danbury, CT; Montpelier, IN; Campbellsville and Hopkinsville, KY; Chesterfield, MI; Birmingham, England; Giessen, Germany; and Toyohashi, Japan.

2010

Emhart Teknologies delivered sales growth of approximately 15% in the fourth quarter of 2010, driven by market share gains and increased platform penetration as well as increased automotive production in North America and Germany. 

Emhart’s unit volume increased 11%, while price had a negative 1% impact, acquisitions added 4% and currency was a positive 1%. 

Organic sales for Hand Tools, Fasteners & Storage rose 4% due to the success of Bostitch hand tools as well as Stanley-branded storage units. Prices fell 1%. 

Overall Industrial segment sales increased 144% to $575 million, while profit, excluding one-time charges, improved 350 bps versus prior year to 14.8%, attributable to the inclusion of the legacy Black & Decker Engineered Fastening business and CRC-Evans.

Full-year Industrial segment sales, including Emhart, more than doubled to $1.85 billion, with profit more than tripling to $269 million.

Overall 2010 sales soared 125% to $8.4 billion, boosted by a 29% gain in revenue from Latin America.

The $3.5 billion Stanley Black & Decker merger, completed in March 2010, gave Stanley a 50.5% stake in the new $8.4 billion industrial supplier.

2009
Fastening and Assembly Systems revenue at Black & Decker decreased 24% to $536.6 million in 2009, and profit slipped 62% to $39.5 million.

Operating margin fell to 7.4%, “primarily due to the automotive industry collapse early in the year.”

The $3.5 billion Stanley Black & Decker merger, completed in March 2010, gave Stanley a 50.5% stake in the new $8.4 billion industrial supplier.

Included in the deal was Shelton, CT-based Emhart Teknologies, a global manufacturer of fasteners and assembly systems whose technology-based assembly products and systems are sold in more than 100 countries. Emhart has 2,500 employees in 39 operating facilities worldwide.

In 2010 Emhart acquired aerospace fastener maker Fastener Innovation Technology Inc. of Gardena, CA.

“Combined with our Heli-Coil initiatives and the 2008 purchase of Spiralock Corporation, bringing FIT under the Emhart brand enables us to integrate the finest aerospace fastener platforms into a single-source organization,” said Emhart president Michael Tyll.

“This acquisition allows us to better serve the aerospace, military and commercial aircraft industries.”

FIT has long-term customer relationships with Boeing, Honeywell, Bell, GE, Pratt & Whitney, Embraer and Gulfstream Aerospace Corp.

Former Acument Aerospace executive Randy Aardema was named general manager of FIT.

Fastening and Assembly Systems sales dropped 34% to $124.1 million in the first quarter of 2009, while segment profit plunged 91% to $2.4 million.

“Sales to the global automotive industry fell nearly 40%, slightly less than the decline in automotive production,” the company reported. “Sales were also down sharply in the industrial business, as global manufacturing slowed significantly.”

2008
Fastening and Assembly Systems revenue at Black & Decker declined 2% to $700 million during 2008, with segment profit dropping 7% to $103.3 million. The results ended a six-year run of consecutive sales gains for the fastener segment.

“The Fastening and Assembly Systems segment (Emhart Teknologies) has historically been our most consistent, both in terms of sales and profitability,” the company stated. “While it performed better than our other segments for the full year, its results were unusually weak late in the year due to dramatic slowing in the automotive industry.”

In September 2008 Black & Decker paid $24.1 million to acquire threaded fastener maker Spiralock.

HISTORY
Emhart Teknologies has more than 2,500 employees in 39 operating facilities worldwide. Principal fastener facilities are located in Danbury, CT; Montpelier, IN; Campbellsville and Hopkinsville, KY; Chesterfield, MI; Birmingham, England; Giessen, Germany; and Toyohashi, Japan.

Corporate Office: 1000 Stanley Dr., New Britain, CT 06053.
Tel: 860 225-5111
Web: stanleyblackanddecker.com and emhart.com
CEO: John Lundgren
Employees: 50,400, including13,131 in the U.S.
©2015 GlobalFastenerNews.com