Benzinga | Dec 16, 2020 06:35AM EST

Stanley Black & Decker Raises Q4 Organic Growth Outlook From 3%5% To 10%; Says 2020 Free Cash Flow Is Assumed To Be Greater Than $1B Versus The Prior Assumption Of $800M$900M

NEW BRITAIN, Conn., Dec. 16, 2020 /PRNewswire/ -- Stanley Black & Decker (NYSE:SWK) today upgraded certain scenario planning assumptions that were shared on October 27, 2020.

2020 Planning Assumption Updates:

* Fourth quarter organic growth now approaching 10% versus the prior assumption of 3% -- 5%

* Full year operating margin dollar growth of 7% -- 9% versus 2019 compared to a prior assumption of mid-single digit growth

* Full year free cash flow is assumed to be greater than $1 billion versus the prior assumption of $800 -- $900 million

These revised assumptions are a result of stronger demand across North America, Europe and emerging markets in Tools and Storage as well as a stronger performance in Engineered Fastening and Attachment Tools within Industrial. Tools & Storage United States Retail POS is tracking above the high end of our planning assumption, with the quarter to date growth up 22% through December 5th. In the fourth quarter, the stronger demand is expected to generate improved operating leverage and result in a second consecutive quarter of historically strong operating margin rate performance for the Company.