CEO says Stanley Black & Decker is engulfing nearly $ 1 billion in supply chain turmoil

Tool maker Stanley Black & Decker CEO Jim Laurie told CNBC Thursday.

“The reality was the beginning of a pandemic, with in-flight inventories of about $ 300 million,” Laurie said in an interview. “Squawk on the Street” “Today we have about $ 800 million, so $ 500 million [more] Most of the inventories are tied up in the process of reaching developed markets from Asia, including the fleet off Long Beach. “

Raleigh’s comments, as president, provide additional insight into global supply chain issues Joe Biden I’ve made Relieving congestion at ports on the west coast is our top priority Over the past few weeks, we have announced plans to expand our business 24 hours a day, 7 days a week at Long Beach, California and the ports of Los Angeles. Together, ports make up about 40% of shipping containers entering the United States.

Supply chain turmoil contributed to the U.S. economy Third quarter growth slower than expected.. Moreover, Higher fares It is one of the many inflationary pressures currently hitting the economy as companies seek to overcome logistics hurdles.

According to Raleigh, Stanley Black & Decker, the parent company of Craftsman, DeWalt and Irwin Industrial Tools, is experiencing “massive inflation” in many areas, including steel.

“Adopting a combination of material inflation, labor inflation, and premium transportation costs to address some of our supply chain challenges has more than $ 1 billion in impact. Currently, $ 16 billion and $ 17 billion companies is. [annual] Revenue. That’s a big problem. ” But Stanley Black & Decker said, “Prices, some mixes, new products, etc. can recover 100% of that.”

Raleigh’s appearance on CNBC on Thursday came shortly after the company reported higher-than-expected third-quarter earnings. According to Refinitiv, revenue of $ 4.26 billion exceeded analysts’ estimates of $ 4.25 billion and earnings per share was $ 2.77, 30 cents above expectations. Stanley Black & Decker has a market capitalization of approximately $ 30 billion.

Despite the third-quarter beat, Stanley Black & Decker’s share price fell about 1.5% in Thursday afternoon trading. Investors may be reacting to the company’s decision to lower its full-year earnings outlook, primarily because of the effects of inflation. Stanley Black & Decker expects adjusted earnings per share in 2021 to decline from $ 11.35 to $ 11.65 to $ 10.90 to $ 11.10.

CEO says Stanley Black & Decker is engulfing nearly $ 1 billion in supply chain turmoil

Source link CEO says Stanley Black & Decker is engulfing nearly $ 1 billion in supply chain turmoil

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