Stanley Works said first-quarter net income plunged 61 percent as it incurred the costs of cutting jobs, closing plants and exiting a business.
The supplier of tools, hardware and door systems turned in net income of U.S. $19.2 million, or $0.22 a share, compared with $48.9 million, or $0.56 a share, a year earlier.
The results for the latest quarter included $3.1 million in severance costs for about 150 terminated employees and $14 million in impairment and other costs related to its exit from the Mac Direct direct-distribution business.
Stanley announced earlier this month that it is eliminating more than 1,000 jobs, or about 6.7 percent of its 15,000-person work force, as it closes four manufacturing plants and five warehouses. Stanley is exiting Mac Direct as part of a reconfiguration of its Mac Tools subsidiary. Without the restructuring costs, which are part of ordinary operations under generally accepted accounting principles, Stanley said it earned $0.35 a share. That is in line with its April 9 projection for earnings excluding items of $0.33 to $0.36 a share, revised from a previous forecast of $0.44 to $0.46 a share.
Tool sales fell 2.3 percent to $467.1 million on weak demand for industrial and Mac tools, while sales of door systems climbed 44 percent to $199.1 million.
to Daily News