Stanley Black & Decker said first quarter 2011 revenues were up 9% over first quarter 2010,
Net sales for the 1Q period were $2.4 billion, up 89% versus the same period in 2010 due primarily to the addition of Black & Decker. Stanley and Black & Decker closed their merger on March 12, 2010. The 89% sales increase is attributed to:
• incremental Black & Decker results of +71%
• other acquisitions, +9%
• unit volume, +7%
• currency, +2%)
Stanley Black & Decker President and CEO John F. Lundgren said he is please at the progress of integrating the two companies. "As previously stated, our cost synergies are forecasted to be at an annualized rate of $460 million as we enter 2013, up from our original forecast of $350 million," Lundgren said. "Our plans to achieve $300 - $400 million in revenue synergies by 2013 remain on track."
Stanley Black & Decker's power tools business is part of its CDIY (Construction/Do-It-Yourself) business segment. It also operates Security and Industrial business segments.
In CDIY, Latin America and Asia drove 1Q revenue and profit growth with double-digit gains. Volumes in North America were up mid-single-digits on a pro forma basis. Pro forma organic sales volumes for the combined hand and power tool businesses grew 3%. Legacy Black & Decker Power Tools & Accessories pro forma organic sales increased approximately 4%, driven by unit volume. Sales of Professional Power Tools & Accessories increased in the mid-teens driven primarily by the continued success of the lithium ion cordless product line. Consumer Products Group volumes were relatively flat as strength in Latin America was muted by weaker consumer spending primarily in Europe.
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