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Robert Bosch Tool Corporation Bosch intends to invest in expanding their portfolio of portable power tools and also expand their North American business. At the same time, the company will be streamlining operations and continue to work to reduce materials costs and improve efficiency. Bosh Power Tools launched a revamped website that brings an enhanced user experience with simpler navigation and improved speed. Boschtools.com introduces new features for the worker, including ten specialized trade pages showcasing industry-specific products and upgraded variant filtering on Accessory product detail pages. Stanley Black & Decker Q4 revenue fell 6.3% to $3.74 billion due to lower sales of outdoor products and DIY products. Despite falling sales, profits beat forecasts due to cost-cutting measures and inventory reduction. Conference Call with Analysts: SB&D delivered more than $1 billion in savings to date and remains on track to achieve the $2 billion in savings targeted by the end of 2025. Strong free cash flow generation was primarily the result of $1.1 billion of inventory reduction achieved through implementing supply chain initiatives. They expect the sale of their infrastructure business to close by the end of the first quarter. 2024 will be the next chapter in their transformation. It will be a transitional year as they continue to strengthen their foundation to create greater future earnings power. They will remain focused on improving margin, earnings and cash flow by delivering differentiated product innovation through their portfolio of leading brands, implementing cost efficiency measures within their control and driving share gain in their core markets. They expect relative strength and demand from professional tools and portions of their industrial markets. However, they believe the consumer and outdoor demand trends will continue to be weak. They will focus on the pro user and the healthiest market segments to generate share gains and continue to implement supply chain cost improvements. Tools & Outdoor Q4 revenue fell 8% organically to approximately $3.2 billion as a result of lower volumes, primarily from soft consumer outdoor and DIY market demand. Price remained flat. They made substantial progress improving profitability for the T&O segment through the year, driving adjusted segment margin to 10% in the fourth quarter. Organic revenue for hand tools declined 6%, while power tools was up 1 point organically as pro-driven momentum offset pressures in DIY demand. Power tools organic performance improved each quarter in 2023 and finished the year in a growth position. North America was down 10% organically with the tool's product lines down low single digits. The commercial and industrial channel, which has a heavy professional user base, grew low single digits organically. Fourth quarter US retail point-of-sale demand remained negative compared to 2022 but was above 2019 levels, supported by price increases and strength in professional tools. They have identified approximately 85,000 SKUs for discontinuation and are assisting customers as they transition to replacement products. They successfully eliminated more than 45,000 SKUs by the end of 2023, with more expected in 2024. These actions are expected to generate approximately $0.5 billion of savings in 2024. They will use the savings to fund additional growth investments in core business. They plan to reduce inventory by $400 million to $500 million in 2024 and continue to prioritize working capital efficiency. They will continue to invest for long-term organic growth and share gain throughout 2024 and plan to invest an incremental $100 million in innovation and field and marketing resources to support their DeWalt, Craftsman and Stanley brands. They will continue to develop centers of excellence for power tools, certain types of hand tools, certain types of outdoor products that leverage the expertise they have in Asia, Mexico, the United States and Eastern Europe. They expect a level of promotional activity that is consistent with 2019, which they feel is back to a healthy balance of normal core operating selling activities and promotional activities. Their customers are not really talking to them about unusual levels of promotional activities, just looking for the norm. That should continue to be the case if demand remains steady. Makita Makita noted that North American sales, mainly at home improvement stores, were down 20.8% year over year. Makita USA had company-wide layoffs in mid 2023, following several price increases over the span of two years. The company tried new things for the 2023 holiday shopping season, including mail-in rebates. According to market watchers, there were considerably fewer Makita cordless power tool promotions over the 2023 holiday shopping season compared to previous years. Makita USA also made far fewer product announcements than normal and has stopped issuing press releases and started relying only on social media. © Robert Bosch Tool Corporation. All rights reserved, no copying or reproducing is permitted without prior written approval.
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