Robert Bosch recently hosted the first symposium of energy researchers supported by the Bosch Energy Research Network (BERN). BERN also awarded six energy research grants to researchers at five leading U.S. universities and awarded energy internships to 18 students. Six partner institutions included California Institute of Technology, Carnegie Mellon University, Massachusetts Institute of Technology, Stanford University, University of California, Berkeley and the University of Michigan. The BERN program is managed by the Bosch Research and Technology Center in North America.
Stanley Black & Decker
Net sales for the third quarter rose 14.6% to $3.3 billion, as acquisitions (+9%), volume (+7%) and currency (+1%) more than offset the negative impact of divestitures (-3%).
Organic growth was 7%, with the Tools & Storage segment leading the way with 9% organic growth. They increased their 2017 guidance and now believe they will achieve organic growth between 6% and 13%.
Tools & Storage net sales increased 22% versus the third quarter of 2016 to $2.3 billion as acquisitions (+13%), volume (+9%) and currency (+1%) more than offset divestitures (-1%). The impact of price was relatively neutral compared to the third quarter of 2016. Organic growth was strong across all regions with emerging markets up 16%, North America up 9% and Europe up 5%. Tools & Storage accounted for 70% of net sales overall.
North America share gains were fueled by strong commercial execution along with market-leading innovation, including expanded adoption and new product launches within the DeWalt FlexVolt system.
The Tools segment continues to benefit from a series of growth catalysts including DC brushless, FlexVolt and the Newell Tools acquisition. The Craftsman brand acquisition will impact growth beginning in mid-2018.
From their Q3 Conference Call with Analysts:
Lowe’s will begin selling Craftsman tools in the U.S. and Canada sometime next year. However, they are still working through the details of the launch, including both timing and the details of what products will be available to Lowe’s shoppers in the U.S., Canada and online. They expect it to impact financials by mid-2018.
They have a dedicated team of more than 100 people working on what they are calling the re-Americanization of the iconic Craftsman brand. They began with what they called “a brand, a history and three people.” When they begin executing their strategy, it will probably result in margins that will initially be below average and have a modest negative impact in 2018 and the first half or even the full year of 2019.
They will continue to fully support Craftsman sales by Ace Hardware’s 2,800 stores.
Tools & Storage delivered organic growth in every region and business unit and with all top customers.
The Newell Tools integration is going well and they are confident they will capture $80 to $90 million in cost synergies.
Actions to improve customer service levels across the Lenox and Irwin product lines have been successful and they are now experiencing fill rates equal to their legacy brands.
They believe the impact of cannibalization by FlexVolt on their corded products has been minimal and the program has carried positive benefits across the DeWalt brand.
They have seen 3% growth in what they referred to as the declining corded power tool market, which they attributed to their Made in the USA strategy.
Hand Tools, Accessories and Storage organization grew 7% on new product introductions. This is the team leading the integration activity for Lenox, Irwin and Craftsman brands.
They raised their EPS guidance for the year by $0.10 primarily due to higher organic growth, which is now approaching 6% for the full year.
Looking into next year they see more commodity inflation than they originally planned for. They were initially planning on $100 million, now they are looking at closer to $150 million. They are looking at what pricing actions they can take in response. They traditionally get 60% to 70% of price recovery in year one, but they would like to get closer to 100%.
They would like to commercialize their connected jobsite initiative and are looking at ways to partner with organizations with different skillsets that can bring the full impact of the Internet of Things to construction job sites. They have had successful tests but need to find ways to commercialize the connected job site.
SB&D was selected as a component of the Dow Jones Sustainability Index (DJSI) for North America for the seventh consecutive year. SB&D’s overall score placed the company in the 86th percentile of the DJSI, up from 83rd last year. The DJSI measures performance on more than 600 different data points in 22 different categories, including environmental stewardship and human rights.
SB&D has partnered with Sunflower Labs, a San Francisco-based startup focused on home security products. The two companies will work together on new and innovative security solutions. Sunflower Labs manufactures home security drone camera systems, including the Sunflower Home Awareness System, which combines outdoor sensors with an aerial camera for a full view of what is going on around the home and property. About 18% of SB&Ds revenue last year came from security products.
Milwaukee Tool’s plant in Greenwood, Wisconsin received a series of bomb threats in late September. The police were called each time, and the building was evacuated. Bomb-sniffing dogs did not turn up any explosives. Authorities have no leads, and do not know if the calls were a hoax.
Q3 revenue rose 15% to $670 million. Organic revenue growth was more than 10%. During the third quarter, Trimble completed the acquisitions of Muller-Electronik and 10-4 Systems. CEO Steve Berglund said that there was strength across all segments and all regions. Trimble expects revenue between $655 million and $685 million for the fourth quarter.
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