(RTTNews) - While reporting financial results for the third quarter on Thursday, Stanley Black & Decker (SWK) slashed its earnings outlook for the full-year 2019.
For fiscal 2019, the company now projects earnings in a range of $6.50 to $6.60 per share and adjusted earnings in a range of $8.35 - $8.45 per share. Previously, the company expected earnings in the range of $7.50 to $7.70 per share and adjusted earnings in the range of $8.50 to $8.70 per share.
On average, analysts polled by Thomson Reuters expect the company to report earnings of $8.56 per share for the year. Analysts' estimates typically exclude special items.
Additionally, the company announced a new cost reduction program which is expected to deliver $200 million in annual cost savings for 2019, with an approximate pre-tax restructuring charge of $150 million expected to be recognized primarily in 2019.
"To position the business for success in 2020 and beyond, we have begun implementing new cost and pricing actions, as well as accelerating our $300 - $500 million multi-year margin resiliency initiative. These actions will preserve our ability to continue to generate continued earnings growth and manage externally driven volatility," said James Loree, Stanley Black & Decker's President and CEO.
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