(Reuters) - Stanley Black & Decker (NYSE:SWK) beat analysts' expectations for fourth-quarter profit on Thursday, as the tools and industrial equipment manufacturer benefited from higher pricing and tightening of costs.
The manufacturer provides hand tools, power tools and industrial products to home improvement retailers, construction businesses and aerospace manufacturers.
A rise in interest rates and squeezed consumer budgets have led to a slowdown in demand for the company's outdoor and do-it-yourself (DIY) tools.
However, price increases and cost control measures protected profits of the Connecticut-based company, which reported $835 million of pre-tax run-rate savings from measures such as lower headcount and indirect spend reductions.
"Looking to 2024, we will continue our measured and disciplined approach to cost management as we drive toward our target of 35%+ adjusted gross margins," Chief Financial Officer Patrick Hallinan said on Thursday.
The company reported an adjusted profit of $0.92 per share for the quarter, compared with analysts' average estimate of $0.79 per share, according to LSEG data.
Total quarterly revenue was $3.7 billion, down 6% from a year earlier, hit by lower sales of its outdoor and DIY products. However, resilient demand in the aerospace and automotive sectors offset some fall in sales.
The company now expects a full-year profit between $3.50 and $4.50 per share. Analysts on average were expecting a profit of $4.46 per share for 2024.