Last Updated: 25th November 2022

Stanley Black and Decker is a global manufacturer of tools and equipment used in building and decorating, as well as industrial fastenings and solutions used in auto and aerospace manufacturing.

They own a number of globally recognised brands including Stanley (knives), Black and Decker, and DeWalt

Employees: 60,000

Revenue: $14.5bn for FY2021

HQ Location: New Britain, Connecticut, US

What they do:

  • Manufacturer of building and decorating products, and industrial products

  • 100+ manufacturing facilities (50 outside of US)

  • Presence in 60 countries

Their vision and priorities:

  • Extreme Innovation: launching more than 1,000 products a year, including collaborations with startups, entrepreneurs, academics and research labs.

  • Extraordinary Customer Experience: product performance, sustainability, electrification of home and garden tools and eCommerce experience.

  • Operations Excellence: supply chain and manufacturing efficiencies through an agile, adaptive and digital approach. Committed to Industry 4..0 investments

  • Performance Resiliancy: dealing with volatility, uncertainty, complexity and ambiguity (VUCA).

  • People and Technology: investing in reskilling, upskilling and lifelong learning.

Financial Goals

  • Organic revenue growth at 2-3x market rate

  • 35% gross margin by 2025 (currently 24.7%)

  • 100%+ free cash flow conversion

Three things to know right now

Business transformation underway

They are reducing complexity in the business to realise $2bn in annual cost savings.

  • Optimising the corporate structure

  • Focusing the operating model

  • Transforming their supply chain

Investing in core growth

They are investing $300m - $500m to accelerate the core business.

  • Innovation and R&D

  • Electrification of products

  • Focus on market leadership

  • A more responsive supply chain

Electrification

Electrification drives a 3x to 6x higher $ per vehicle in their industrial division.

An internal combustion engine vehicle has $10 of Stanley Black and Decker content in it.

An electric or hybrid car might have $30 - $60 of Stanley Black and Decker content in it

What does each business unit do?

Tools and Outdoor

This business unit is 83% of the overall company - so the main revenue generator.

They make power tools, outdoor power equipment and hand tools, storage and accessories.

Brands include Stanley, Black and Decker, DeWALT.

Industrial

This business unit is newer and growing, representing 17% of the revenues.

Engineered fastenings are nuts, bolts and rivets sold into the aerospace and automotive industry.

This division is focused on highly engineered, value added solutions with a strategy for recurring revenue models.

Their financial calendar

Q1: January-March - Earnings 27th April

Q2: April-June - Earnings 27th July

Q3: July-September - Earnings 27th October

Q4: September-December - Earnings 27th January

Positives from the last earnings report:

  • Delivered $4.1bn revenue, up 9% mainly through pricing strategies

  • Global cost reduction on track - delivered $65m of savings in Q3

  • Completed divestment of non core businesses allowing pay down of $3.3bn of debt

Challenges from the last earnings report:

  • Macroeconomic challenges limiting organic growth through lower consumer and DIY demand.

  • Operating Margin down versus previous year due to inflation, higher supply chain costs, product curtailment and lower volume.

Next Earnings Report:

Around 27th January 2023

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