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STANLEY, BLACK & DECKER Revenue grew 2% in the second quarter, fueled by 4% organic growth. Net sales were $2.9 billion as positive volume growth of 3% and price growth of 1% more than offset the 2% negative impact of currency. Tools and Storage saw growth of 8% with net sales increasing 5% compared to the second quarter of 2015 as 7% positive volume and 1% positive price more than offset 3% negative currency. All regions posted solid organic growth, with North America up 7%, Europe up 14% and emerging markets up 4%. Share gain in North America continued due to a healthy underlying U.S. construction tool market and new products, which helped overcome “modest pressure” within industrial channels. Working capital turns for the quarter were 8.2, up 1.2 turns from the second quarter of 2015, due to a focus on working capital management. From their Q2 Conference Call with Analysts: Globally Power Tools had a double-digit quarter, up 10% with strength across Professional and Consumer Tools. POS data was very strong in the mid-teens and ending retailer inventories were in line with or below historical norms. They credited improvements in inventory to the fact that their large customers have done a very good job mining data and working with them to cut the number of weeks at retail down from an average of ten to twelve to an average of eight to nine without being out of stock. Momentum was good across all major retailers with high-single-digit performance. Tools & Storage is projected to grow in high-single-digits for the year based on the very strong momentum they’ve seen in the first half combined with the impact of the pending FlexVolt launch. They have already demonstrated the new DeWalt FlexVolt technology to more than 700 customers around the globe, including major retailers, distributors and other channel partners. FlexVolt will be released to the market in October. They will reportedly be conducting a “massive” end user demonstration effort as the summer proceeds. They said that FlexVolt will ultimately help deliver the long-held dream of a cordless jobsite. Their expectation for any major launch, including FlexVolt, is that it will generate at least $100 million in revenue over a three-year period, and they believe FlexVolt will exceed that very significantly. Flexvolt should hit stores in late September or early October and they have factored in about a half a point of growth this year, or roughly $50 to $60 million. In 2017 they expect it to be about a $200 million business. They will be looking at sell-through in the initial 90 days very carefully so they can maximize their opportunity. They are anticipating that Brexit will have some impact on their operating margins because of currency impacts and the general uncertainty created by the U.K.’s decision. Other News: SB&D partnered with Cisco to provide an Internet of Things (IoT) solution that increases visibility and decreases complexity in one of the largest tool manufacturing plants in Mexico. Many DeWalt brand power tools are made in the 500,000-square-foot Reynosa manufacturing plant. The factory produces dozens of different products and has 40 multiproduct manufacturing lines. SB&D used RFID tags that use Cisco’s wireless network on virtually all of the materials used which made tracking them easy. The system uses a Programmable Logic Controller to monitor quality control and allow floor managers to see every step of the process and determine how quickly employees are completing their particular steps. As a result, the plant saw labor efficiency increase 10% and utilization rates go from 80% to 90% now that products and machines are talking to the internet. SB&D estimates that equipment effectiveness increased 24% and that each line in the plant will see significant cost savings. NEWELL BRANDS Q2 revenue rises 147.2% to $3.86 billion, topping analysts’ estimates of $3.76 billion. The Jarden business contributed $2.22 billion in sales. Core sales overall grew 5%. Sales in tools slipped 3.8% to $197.4 million. Core sales fell 2.3%. Core sales exclude contributions from acquisitions and divestitures as well as negative impact from foreign currency. NB reaffirmed their 2016 sales guidance of core sales growth between 3% and 4%. TRIMBLE Trimble is partnering with SCSEC Group 1, one of the largest building contractors in China, to explore the applications of mixed-reality technology in the Architecture, Engineering and Construction industry. As part of Trimble’s Mixed-Reality Pilot Program, CSCEC Group 1 is the first organization in China to use Microsoft HoloLens and Trimble Mixed-Reality solutions. With mixed-reality the primary mode of interaction is spatial, and design teams can review and interact with 3D models and explore previously invisible aspects of a building’s performance. This ability allows team members to discover and correct problems and conflicts before actual construction begins. © Robert Bosch Tool Corporation. All rights reserved, no copying or reproducing is permitted without prior written approval.
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