Newly merged tool giant Stanley Black & Decker has posted a first quarter loss because of merger costs. But as WNPR’s Harriet Jones reports, underlying results were well received by investors.
New Britain based Stanley Works only concluded its giant merger with Black & Decker in mid-March, so first quarter results for the new company could be hard to read. Costs associated with the deal meant the company posted a loss of 108 million dollars, or $1.09 per share. Excluding one-time charges, the company saw an increase in earnings of 46%, handsomely surpassing Wall Street’s expectations. CEO John Lundgren says he’s pleased with the progress of the integration of the two companies, which aims to make cost savings of $350 million each year.
The company has begun laying off employees in Maryland, at Black & Decker’s former corporate headquarters. When the merger was announced Stanley estimated it would cut 4,000 jobs from the combined companies’ workforce of 38,000. Stanley’s shares closed up almost 2%.
For WNPR, I'm Harriet Jones.