Toolmaker Stanley Black & Decker (SWK) - Get Report, contending with the impact of the coronavirus pandemic, on Thursday said it was withdrawing its first-quarter guidance, reducing non-essential staffing, cutting indirect spending and suspending M&A activity.
The New Britain, Conn., company also said it would adjust its supply chain and manufacturing labor base to match current demand and take advantage of the current raw-material-deflation opportunity.
Stanley Black & Decker said it was in a strong financial position because it carried $3 billion of revolving-credit facilities backed by a well-capitalized bank group, has substantial cash on hand and manages a robust and highly rated commercial paper program.
In addition, the company said it could generate additional cash proceeds of $750 million in the second quarter upon the successful remarketing of its convertible preferred stock.
As a result of "the challenging and uncertain macro environment", the company said it was withdrawing its previously announced guidance for 2020.
Stanley Black & Decker said it expected demand disruptions driven by the coronavirus to hurt 2020 results. It will update its outlook in its first-quarter-earnings release.
The company will broadcast its first-quarter earnings call on April 30.
"This is one of the most challenging crises our world has ever experienced," James Loree, president and CEO, said in a statement.
"We are in a strong position as we face today's challenges and are taking the necessary actions now to protect our employees and the business while positioning the company to thrive into the future."