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Robert Bosch Tool Corporation Bosch acquired Arioso Systems, a German microelectromechanical systems (MEMS) micro speaker company. The MEMS technology combined with Bosch’s MEMS sensor portfolio for wearables and hearables will allow true wireless earphone manufacturers to design products with lower power consumption and a smaller form for longer battery life and easier system integration. The global market for micro speakers is expected to grow from $9 billion in 2020 to $11 billion in 2026. Stanley Black & Decker Goldman Sachs Industrials & Materials Conference: They anticipate revenue this year of $20 billion, up from $15.6 billion last year. The acquisitions of MTD and Excel will account for about $3 billion in revenue. Power Tools is about half of their portfolio, with outdoor power equipment accounting for about 25%. Ecommerce represents close to 20% of the Tools & Outdoor business volume and they will continue to invest in it in the US and around the globe. CEO Don Allan stated that their POS growth rate exceed the figures reported by major home center customers for their Tools & Outdoors categories, which indicates they are gaining share. They’re very focused on making sure that they offset the impact of inflation with price increases. They had positive price of 5% in Q4 and close to 6% in Q1. They believe Q2 will be 7% to 8% plus 10% in the back half. They reported that all their competitors are also increasing prices or introducing new innovative products that command higher prices. They constantly monitor everyone’s prices. Price increases are not across the board; it might be just 1% for some products and 10% for others. They increased their forecast for commodity inflation by about $600 million to a total of about $1.4 billion, which can be attributed to many different commodities, including lithium, cobalt, nickel, resin, base metals and of course transportation costs. However, increases in commodities have leveled off over the past four weeks. Demand has not slowed for professional power tools; homeowners are still spending money on their homes, but not as much as they were spending during the pandemic lockdown stages. They believe there will be some type of recession but there are big questions as to when and what type. It could be a European recession with just a modest slowdown in the US or a broader, stronger global recession. They currently have five or six different scenarios they could put into play depending on what type of recession they need to deal with. For Tools & Outdoor, they feel it’s important to make sure they have the right innovation and the right people, including enough feet on the street to make sure they are taking advantage of all opportunities. They expect to gain share regardless of the economy. They expect to see margin improvement in Tools in the back half. They are watching the situation in China very closely. Their main plant in Suzhou has been open the entire time, employees go through daily PCR testing, and they have not yet had to shut down a plant. They are not at full capacity because they are getting delays from vendors that supply components and parts but so far it is not disrupting their expectations for the current quarter or the next. The Shanghai port is actually open and moving cargo in and out. Other News: SB&D acquired Msuite Corp., a cloud-based management software connecting BIM, FAB and Field Teams to reduce costs, increase productivity, efficiency, and safety and improve technology. SB&D opened a new plant in Hermosillo, Mexico, that will produce power tools for construction and outdoors. There are about 84 employees now; by the end of the year there should be about 1,800 employees. © Robert Bosch Tool Corporation. All rights reserved, no copying or reproducing is permitted without prior written approval.
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