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Stanley Black (SWK) to Discontinue Operations in Fort Worth

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Stanley Black & Decker (SWK - Free Report) announced plans to discontinue operations in Fort Worth, TX, as part of its business transformation efforts to optimize its footprint and better serve customers. The decision will affect 175 employees at the Texas facility.

As part of the business transformation strategy launched in 2022, SWK will also transfer its Cheraw, SC operations to the Tennessee facilities in Jackson and Gallatin. While this action will impact 182 employees in South Carolina, it will create 80 jobs in Tennessee.

The employees impacted by these actions will be given the option for employment at other Stanley Black facilities. They will also be provided with job placement support services.

SWK expects to deliver $2 billion of cost savings through its business transformation strategy. The company’s strategic business transformation actions will provide a more focused product portfolio and operational and service excellence.

The strategic efforts are expected to strengthen Stanley Black's core business, drive financial performance and promote investments to ensure sustainable future growth.

Stanley Black generated savings of $200 million in the second half of 2022 from its organizational changes and indirect cost savings. The company expects EBITDA to achieve a run rate of $1.5 billion in the latter half of 2023 from its transformational initiatives. It also expects to generate cost savings of $500 million from its supply chain transformation initiatives by the end of 2023 and $1.5 billion by 2025.

Stanley Black has lately been grappling with weakness in its Tools & Outdoor segment due to reduced retail and consumer demand as a result of interest rate hikes. The company anticipates a soft demand environment for 2023 with a decrease in new housing starts and remodel activity.

Zacks Rank & Key Picks

Stanley Black presently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks within the broader Industrial Products sector are as follows:

Deere & Company (DE - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company pulled off a trailing four-quarter earnings surprise of 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

Deere has an estimated earnings growth rate of 31% for the current fiscal year. The stock has gained 13% in the past six months.

Allegion plc (ALLE - Free Report) currently carries a Zacks Rank #2 (Buy). The company pulled off a trailing four-quarter earnings surprise of 10.3%, on average.

Allegion has an estimated earnings growth rate of approximately 12% for the current year. The stock has rallied around 16.1% in the past six months.


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