Stanley Works 1Q Profit Sinks On Tumbling Sales

NEW BRITAIN, Conn. (AP) — Tool maker Stanley Works Co. said Friday its first-quarter earnings tumbled 43 percent as core sales slid and couldn't be offset by acquisition growth and higher prices.

The company earned $37.7 million, or 47 cents per share, compared with $66.5 million, or 83 cents per share, a year earlier.

Revenue slipped 15 percent to $913 million, from $1.07 billion in the first quarter of 2008.

Analysts polled by Thomson Reuters expected a profit of 39 cents per share on $968.2 million in sales.

The company said revenue from acquisitions grew by 7 percent and sales from higher prices rose 3 percent. But that's wasn't enough to offset the effects of weak global economic conditions, Stanley said, which cut into overall product sales.

Profit in Stanley's security segment rose 33 percent, while its consumer segment profit slipped 39 percent. Industrial tools profit fell the sharpest, at 50 percent.

The company expects sales will remain weak through the rest of the year, and issued a wide earnings prediction range mostly under Wall Street's expectations.

In morning trading, Stanley shares rose 61 cents to $34.23.