Q3 2024 Stanley Black & Decker Inc Earnings Call Transcript
Key Points
- Stanley Black & Decker Inc (SWK) achieved significant gross margin improvements, reaching 30.5% in Q3 2024, up 290 basis points from the previous year.
- The company generated strong free cash flow of approximately $200 million in Q3 2024, supporting debt reduction and capital allocation priorities.
- DEWALT brand experienced its sixth consecutive quarter of organic growth, indicating strong market demand and brand strength.
- The company is on track with its global cost reduction program, targeting $1.5 billion in savings by the end of 2024 and $2 billion by the end of 2025.
- Stanley Black & Decker Inc (SWK) is investing in new growth initiatives, including a $30 million commitment by 2027 to support tradespeople and skills development.
- Overall revenue for Q3 2024 was $3.8 billion, down 5% compared to the previous year, with organic revenue declining by 2%.
- The company faced a weak consumer backdrop and mixed end market demand, particularly impacting the DIY and consumer segments.
- North American sales declined 4% organically, with challenges in the consumer and DIY markets affecting performance.
- The industrial segment experienced an 80% decline in reported revenue due to the divestiture of the infrastructure business.
- Global automotive production headwinds and a weak automotive market contributed to a decline in the industrial segment's performance.
Welcome to the third quarter 2024 Stanley Black & Decker earnings conference call. My name is Shannon, and I will be your operator for today's call. (Operator Instructions) Please note that this conference is being recorded.
I will now turn the call over to Vice President of Investor Relations, Dennis Lange. Mr. Lange, you may begin.
Thank you, Shannon. Good morning, everyone, and thanks for joining us for Stanley Black & Decker's 2024 third quarter webcast. Here today, in addition to myself is Don Allan, President and CEO; Chris Nelson, COO, EVP and President, Tools & Outdoor; and Pat Hallinan, EVP and CFO.
Our earnings release, which was issued earlier this morning and a supplemental presentation, which we will refer to, are available on the IR section of our website. A replay of this morning's webcast will also be available beginning at 11:00 AM today.
This morning, Don, Chris and Pat will review our 2024 third quarter results and
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