NEW BRITAIN, Conn. (AP) _ Shares of Stanley Black & Decker plunged in morning trading after the tool company lowered its expectations for the year, citing slower growth in emerging markets and a hit from the U.S. government shutdown.
The New Britain, Conn., company now expects 2013 adjusted earnings of $4.90 to $5 per share, which falls short of average analyst expectations for $5.44 per share and the company’s previous estimate for $5.40 to $5.65.
Company share dropped $12.92, or 14.4 percent, to $76.59 Wednesday, while broader indexes edged up about a half percent.
Stanley Black & Decker said about half of that reduction is tied to a slower-than-expected pace of profitability improvement in its security division. It also cited lower-than-expected growth due to the U.S. government’s budget impasse.
For the three months ended in September, the company earned $166 million, or $1.04 per share. That compares with net income of $115.2 million, or 69 cents per share, in the 2012 third quarter. Excluding several one-time charges, Stanley Black & Decker earned $1.39 per share.
That topped average analyst expectations of $1.38 per share, according to the data firm FactSet.
Revenue climbed nearly 10 percent to $2.76 billion, which fell short of the average Wall Street forecast for about $2.81 billion.
The company booked $67.2 million in one-time charges tied to mergers and acquisitions in the quarter. It also recorded $31.9 million in one-time selling, general and administrative expenses, mostly for integration costs and consulting fees.
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