Toolmaker Stanley Works ( SWK)posted a 43% nosedive in first-quarter earnings, but still managed to beat expectations handily, which sent the stock up 11% in morning trading.

Shares reached $37.55 Friday morning, after closing up 2% to $33.62 on Thursday.

For the quarter, the company earned $37.7 million, or 47 cents a share, compared with $66.5 million, or 83 cents, a year earlier. Analysts expected a profit of 39 cents.

Revenue narrowed 15% to $913 million from $1.07 billion.

The toolmaker said it initiated a $100 million additional cost-reduction program.

The company said it expects sales to remain weak through the rest of the year due to negative volume trends and unfavorable currency movements. Stanley Works forecasts earnings between $2 and $2.50 a share, in line with Wall Street's outlook.

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