Stanley Black & Decker sees weak 2025 profit, prepares to blunt tariff impact

Reuters
05 Feb
Stanley Black & Decker sees weak 2025 profit, prepares to blunt tariff impact

Feb 5 (Reuters) - Tool maker Stanley Black & Decker SWK.N on Wednesday forecast annual profit below estimates, hurt by tepid demand for its power tools, and said it was preparing measures to mitigate a hit from the recent tariffs announced by U.S. President Donald Trump.

Shares of the company, which supplies to retailers as well as automotive and aerospace customers, were down 4.2% in premarket trading.

The shares lost about 18% in 2024 as the Connecticut-based company navigated a challenging automotive market and inflationary pressures that have pinched consumer spending.

"Aggregate market demand is expected to remain muted but relatively stable in the first half with the potential for a positive inflection later in the year," CEO Donald Allan, Jr. said in a statement.

Stanley Black & Decker expects 2025 adjusted profit to be $5.25 per share, plus or minus 50 cents, compared with Wall Street expectations of $5.38, according to data compiled by LSEG.

In the last few days, Trump has ordered sweeping tariffs against Mexico, Canada and China, but paused levies on the United States' two neighbours. The moves have brought uncertainty into corporate planning and supply chains.

Stanley Black & Decker said it expects to respond to any tariffs with "supply chain and price actions" to blunt a possible hit to margins.

However, the company beat Wall Street estimates for fourth-quarter revenue and profit, boosted by a cost-reduction program that it had put in place.

It reported an adjusted quarterly profit of $1.49 per share, topping analysts' average estimate of $1.27, according to data compiled by LSEG.

Total revenue for the fourth quarter came in at $3.72 billion, beating expectations of $3.58 billion.

(Reporting by Anandita Mehrotra in Bengaluru; Editing by Shreya Biswas)

((Anandita.Mehrotra@thomsonreuters.com;))

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