Power Tool Industry August 2019
Robert Bosch Tool Corp’s new 18V lithium-ion 8.0 Ah Battery uses the latest high-power 21700 cells to deliver twice the power and runtime of standard batteries. The battery weighs 2.14 pounds and features advanced cell technology that delivers power with lower internal resistance. It houses just 10 cells to deliver more power in a lighter, more compact package. The 21700 cell provides 11% more power and 27% more runtime with the same number of cells as an 18V 6.3 Ah battery.
Bosch is acquiring building automation specialist Gesellschaft fuer Regelungstechnik und Energieeinsparung GmbH (GFR) from building technology wholesaler Wiedemann. GFR offers a comprehensive hardware and software product portfolio for sustainable building operations. Terms were not disclosed, and the deal still needs to be approved by the antitrust authorities.
Stanley Black & Decker
Q2 sales increased 3% to $3.8 billion from net sales of $3.6 billion for Q2 2018. Sales for the first six months of 2019 increased just shy of 3% to $7.1 billion from sales of $6.9 billion for the first half of 2018. Sales in the Tools and Storage segment rose 2% to $2.6 billion.
Q2 Conference Call with Analysts:
Organic growth of 3% and 3% growth from acquisitions was partially offset by 3% negative growth from currency. Price was as expected, contributing 2% to revenue growth.
Tools & Storage revenue rose 2%, due to 5% organic growth, 3% growth in volume and 2% growth from price partially offset by 3% negative growth from currency. Most regions and business units contributed to growth. The Tools business continues to benefit from the Craftsman rollout as well as a continued focus on product innovation and commercial execution.
SB&D had $110 million of tariff, commodity and currency headwinds to offset in the quarter, with more than 90% of headwinds impacting Tools & Storage.
Geographically, North America led the way, with revenue up 7% organically, driven by share gains in their US retail business, which was up in the high single digits, and growth in the commercial channels, which rose in the mid-single digits.
Within Tools & Storage, Power Tools & Equipment delivered 6% organic growth. The outdoor segment delivered growth in the high teens, driven by new products and expanded merchandising launched under Craftsman, DeWalt and DeWalt FlexVolt.
They launched a broad range of cordless products in Craftsman outdoor, as well as in DeWalt, which uses the FlexVolt battery platform. DeWalt Outdoor is gaining traction in the market.
They expect the DeWalt Atomic series and the 12-volt DeWalt Xtreme series to produce incremental growth in the second half of the year.
Craftsman is on track and they are well on their way to delivering 3% incremental growth in 2019 and hitting their $1 billion target by 2021. They noted that their redesigned Craftsman products are winning with end users and producing growth and share gains for them as well as their customers.
In North America they had very strong high single-digit retail performance across many of their key customers related to Craftsman.
Hand Tools, Accessories & Storage delivered 4% organic growth with new product introductions and the ongoing Craftsman rollout continuing to contribute to growth.
They lowered their full-year projections, and now expect 4% organic growth. Tools & Storage assumptions were not adjusted, with the segment still expected to produce mid-single-digit organic growth and margin rate expansion. For the full year they expect close to $400 million of commodity, tariff and currency headwinds.
SB&D recalled Porter-Cable 10” table saws because the motor can overheat and create a fire hazard. About 258,000 units were sold in the US and about 990 were sold in Canada. The recalled saws are model number PCX362010 and were sold at Lowe’s Stores nationwide from June 2016 through September 2018.
SB&D will lay off about 100 employees when they close their Georgetown, Ohio facility later this year. SB&D has eight other plants in Ohio, but no further layoffs were announced.
Milwaukee President Steve Richman said that sales have increased nearly 400% since 2011 and he expects the company to hit $5 billion in sales by 2020. Richman joined the company in 2007 and was addressing attendees at the Milwaukee Business Journal’s Power Breakfast in June. Milwaukee Tool has substantially expanded their headquarters in Brookfield, Wisconsin, leading the city to analyze their contribution to the economy in order to better understand the spillover economic effect of attracting and retaining large employers. According to the city, Milwaukee Tool has generated 5,226 indirect jobs in the region and has 1,390 employees with an average annual compensation of $81,000. Milwaukee Tool is also increasing air traffic at Milwaukee Mitchell International Airport, attracting 9,000 passengers in 2018. Milwaukee also reported spending $52.1 million with vendors, $1 million on business meals and $127,537 on tickets to sporting events.
© Robert Bosch Tool Corporation. All rights reserved, no copying or reproducing is permitted without prior written approval.
Comments are closed.