Stanley Black & Decker announces $250M cost reduction program
Stanley Black & Decker's President and CEO, James M. Loree, commented, "The Company delivered 4% organic growth, 14.5% operating margin and 6% adjusted EPS growth in the quarter while coping with $135 million of pre-tax external headwinds from input cost inflation, currency and tariffs. During the quarter, the 2018 impact of these external pressures increased by $50 million, causing us to trim our 2018 EPS outlook by $0.25 at the mid-point, still up 9% year-over-year. We are taking cost actions totaling $250 million as well as additional pricing actions to preserve our ability to produce 2019 earnings growth. The cost actions will be substantially complete by year-end 2018 and the majority of the pricing actions will be implemented in early first quarter 2019."