Robert Bosch Tool Corporation
Sales for Bosch GmbH rose 12% in 2022 to USD 95.4 billion, or 10% when adjusted for currency exchange. Bosch noted that while they expect 2023 to be a challenging year with a possible economic slowdown, they have many plans in place that will contribute to growth.
Robert Bosch will increase their stake in Husqvarna to roughly 12%, which will make them one of Husqvarna’s largest shareholders.
Stanley, Black & Decker
FY22 Conference Call with Analysts:
FY 22 full year revenue rose 11% to $16.9 billion after a record 2021. The growth was led by the outdoor power equipment acquisitions as well as 9% organic growth in the Industrial segment and a 7% bump from raising prices.
Top line growth was dampened by significant reductions in consumer and DIY demand and some supply chain constraints early in the year.
Margins were significantly impacted by inflation as well as their decision to prioritize inventory reductions.
For FY 22, Tools & Outdoor achieved record revenue of $14.4 billion, driven by a 7% improvement from raising prices and 21% growth contributed to by their outdoor acquisitions, which was offset by softer consumer demand and currency.
Tools & Outdoor Q4 revenues were in line with 2022 at $3.4 billion, benefiting from a 7% improvement from raising prices and an 8-point contribution from the MTD and Excel Outdoor acquisitions.
Both MTD and Excel became part of organic growth beginning in December. These positive factors were offset by a 12% decline in volume and a negative 3% impact from currency.
Power Tools declined 5% organically in 2022, due to weakness in consumer and DIY and front half constraints related to electronic components.
Power Tools volume was partially offset by price increases and demand for DeWalt’s cordless systems, including FlexVolt, Atomic and Xtreme and their new power stack battery packs. Hand tools declined 5% organically in the year.
The Outdoor business declined 7% organically in 2022 due to the difficult outdoor season.
North America was down 7% in 2022 due to lower consumer and DIY market demand as well as heavier holiday promotional shipments in the third quarter compared to last year.
US retail point of sale was supported by price increases and professional demand.
Customer fill rates improved significantly in the second half, reducing inventories by $800 million.
Paring down the organization produced $200 million in savings; they also instituted tighter cost controls in their back office and the supply chain that generated more than $500 million of free cash flow in the fourth quarter.
They believe markets will continue to be challenged during 2023 as new housing starts are projected to decline 15% to 25% and repair and remodel activity will decline modestly year-over-year.
FY 23 Tools & Outdoor total organic revenue inclusive of positive price is expected to be down low single digits, while Industrial is planned for low single-digit growth. For Tools & Outdoor, that would mean full year volume would fall about 5%. For the second half, volume is expected to be down 3% to 3.5%.
For the Pro market, they will continue to expand the DeWalt FlexVolt 20-volt MAX system.
Professional job site products and solutions are a key area for long-term growth. They recently introduced a range of revolutionary tools, accessories and storage solutions for Pros in the commercial concrete and construction industries.
Their supply chain transformation is continuing to generate savings; they expect cumulative savings of $500 million by the end of 2023 and $1.5 billion by 2025.
After analyzing their SKUs, they identified approximately 50,000 SKUs that they are no longer manufacturing and are approved for decommission.
Their price model includes 1.5 to 2 points for 2023. Overall, they don’t see any significant deflation in commodities and expect a little inflation in the first half. Based on that, they expect to maintain their elevated prices throughout the year.
They increased their investment in research and development by 25% compared to 2021, well ahead of their total sales growth. The increase in R&D is to ensure they will be able to continue to fund incremental investments.
FY 22 revenue rose 0.4% to US $13.25 billion. The Power Tools segment accounts for more than 93% of revenue.
Shares of Hong Kong–listed power tool maker Techtronic Industries fell almost 19%, wiping out more than $5 billion in market value, after short seller Jehoshaphat Research published a report criticizing the company's accounting procedures. The report alleged that TTI has been inflating its profits and indulging in “manipulative accounting.” TTI stock had already been slumping after their biggest customer, The Home Depot, warned of slowing demand for DIY products and forecast a decline in profits. TTI vigorously denied all allegations and issued a statement that the internal audit committee found no evidence of wrongdoing or irregularities. Trading in TTI’s stock was temporarily halted; stock values rebounded after TTI denied all allegations and trading resumed.
Q4 Revenue dropped 8% to $856.5 million, from $926.0 million in the fourth quarter of the prior year. Analysts were expecting the company to report revenues of $877.16 million. For the full year 2023, before incorporating the expected financial impacts of the pending acquisition of Transporeon, Trimble expects revenue between $3.7 billion and $3.8 billion, also below expectations.
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