By Jonathan Weil
Higher tariffs are coming. Get ready to see more disclosures like one today by Stanley Black & Decker warning about lower corporate profits and higher prices for consumers.
The tool maker in a securities filing said it believed the Trump administration's expected tariff increases could result in an annualized $200 million pretax hit to operating income. The company said the figure didn't factor in any actions it would take to lessen the impact.
By comparison, the average estimate for 2025 operating income among analysts who follow Stanley Black & Decker was about $1.6 billion, according to Visible Alpha.
To mitigate the impact of the tariff hikes, the company said it "is preparing to discuss potential price increases with its customers."
In addition, it said it "has begun assessing supply chain adjustments" and "intends to continue its direct engagement with policymakers." The company said it believes it could take "approximately 12 to 24 months for supply chain adjustments to mitigate a significant portion of the potential increased tariffs."
The company issued the disclosure in advance of a presentation today by its chief financial officer at an investment conference, summarizing the points he plans to discuss.
Shares of Stanley Black & Decker were down about 2% this morning.
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(END) Dow Jones Newswires
November 12, 2024 10:56 ET (15:56 GMT)
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