Stanley Black & Decker said Thursday that its fourth-quarter profit surged, fueled by acquisitions. The maker of hand tools and power tools and accessories also offered earnings guidance for this fiscal year above Wall Street forecasts.
Net income rose to $137.8 million, or 81 cents per share, for the October-December period from $56.7 million, or 69 cents per share, a year ago. Stanley Works acquired Black & Decker in a $3.5 billion stock buyout approved in March 2010.
The company now expects the Black & Decker acquisition will save $425 million by the end of 2012, more than the $350 million originally estimated. The company attributed the higher figure to greater savings in three areas: manufacturing and distribution, sourcing and procurement, and business and regional consolidation.
The company said during a conference call that it plans to spend more promoting Black & Decker products, an activity which had been limited during the merger.
Adjusted to account for a shift in the company's fiscal calendar and excluding one-time charges related to the acquisition, fourth-quarter earnings were $1.05 per share.
Revenue more than doubled to $2.41 billion from $969 million a year earlier due to the acquisition of Black & Decker and other acquisitions and higher unit volume. Analysts expected earnings of 93 cents per share on revenue of $2.36 billion, according to FactSet.
For the year, net income fell to $198 million, or $1.32 per share, from $224 million, or $2.79 per share a year earlier. Revenue rose to $8.41 billion from $3.74 billion a year earlier.
Stanley Black & Decker expects earnings of $4.75 to $5 per share in fiscal 2011, excluding one-time charges, while analysts expect $4.69 per share.
Sun reporter Andrea K. Walker and the Associated Press contributed to this article.