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.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
November 12, 2024 10:56 ET (15:56 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。