Shares of Stanley Black & Decker (SWK) - Get Report took a hit Thursday after the company cut its outlook and reported a drop in third-quarter profit.

The stock fell 4% to $147.72 after the company said its net income fell to $230.5 million, or $1.53 a share, from $247.8 million, or $1.65 a share. Adjusted earnings were $2.13 a share.

Sales rose 4% to $3.6 billion.

Analysts were expecting earnings of $2.03 a share on sales of $3.65 billion, according to FactSet.

The company also announced a new cost-reduction program that it expects will result in annual savings of $200 million, with pretax restructuring charge of $150 million expected to be recognized primarily in 2019.

Its adjusted earnings guidance for the year was reduced to a range of $8.35 to $8.45 a share from $8.50 to $8.70. Analysts were expecting adjusted full-year EPS of $8.56.

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