Stanley Black & Decker trims FY18 adjusted EPS view to $8.10-$8.20
Previous EPS view was $8.30-$8.50. Consensus is $8.35. The following reflects the key assumption changes to the Company's prior adjusted EPS outlook: Higher input costs, including tariffs, FX & commodities (- ~$0.25); Lower expected organic growth (- ~$0.15); Lower anticipated tax rate and other below the line items (+ ~$0.15). Donald Allan Jr., EVP and CFO, commented, "Our 2018 guidance now contemplates $370 million of commodity, currency and tariff headwinds and delivers strong organic growth of 6% and adjusted earnings per share growth of 9%. We are pleased with our expected 2018 performance given the magnitude of the headwinds. As we shift to 2019, we are now preparing for the carry over effect of the 2018 headwinds. We will continue to pass on these input cost increases to our customers as price increases. Additionally, we are taking actions to adjust our supply chain and cost structure. We anticipate the cost reduction program to deliver $250 million in annual cost savings in 2019. The pre-tax restructuring charge is expected to be approximately $125 million and is anticipated to be booked during the fourth quarter of 2018. We continue to take the appropriate actions to protect our margins and our competitiveness in the face of these external headwinds and position the business for EPS expansion once again in 2019. The organization remains focused on strong day-to-day execution and operational excellence and we believe the Company is well-positioned to deliver sustained above-market organic growth with operating leverage, strong free cash flow conversion and top-quartile shareholder returns over the long-term."