3Q’12 Segment Results
|($ in M)||3Q' 12 Segment Results|
YOY Sales Growth
|Profit Rate|| Profit Rate
1 charges primarily pertaining to synergy attainment & facility closures
- Mid-teens organic growth in Latin America and mid-single digit organic growth in the U.S. drove a 4% increase in organic revenue for the CDIY segment. Both the Professional Power Tool and the Hand Tool & Fastening Business grew in these regions and 5% organically on a global basis, primarily due to new product introductions. The Consumer Products Group grew 4% organically due to the successful launches of the Black & Decker Gyro and Matrix products.
For the entire CDIY segment, including Pfister, net sales increased 3% versus 3Q’11 due to a 4% increase in unit volumes and acquisitions (+3%), which was partially offset by a 4% decline in currency. Excluding charges, overall segment profit was 15.8%, up 260 basis points versus 3Q’11, due to cost synergies and volume leverage, marking record profitability since the merger with Black & Decker.
- Net sales in Security increased 22% versus 3Q’11. Acquisition growth (+26%) and price (+1%) outweighed the negative impact of currency (-1%) and a 4% decline in unit volume.
Convergent Security Solutions (CSS) organic revenues declined low single digits primarily due to weakness in Europe. The legacy CSS North America business grew 2% organically due to RMR growth and successful conversion of backlog. The Niscayah integration continues to progress as planned and the operating margins of the business are on track to exceed 12% for the full year, marking a 500+ basis point improvement versus 2011. Healthcare Solutions sales were pressured by continued soft customer cap ex and delayed spending ahead of the anticipated 1H’13 release of a new product generation.