(Reuters) -Stanley Black & Decker cut its annual profit forecast on Wednesday, as the tool maker accounts for a hit to its margins amid uncertainties and higher costs in the wake of U.S. President Donald Trump’s broad tariffs.
Its shares, however, rose about 5% in premarket trading as the company topped expectations for first-quarter results and laid out plans to cushion impacts from the tariffs.
Trump’s tariffs on metals such as aluminum and steel, paired with levies on countries including China, have threatened to disrupt an already-strained supply chain, pushing up costs for companies in the sector.
In response to policy changes, the company said it hiked prices in April and plans to implement a second increase in the third quarter. It is aiming to cut tariff costs from China over the next 12 to 24 months through supply chain adjustments.
“In light of the current environment, we are accelerating adjustments to our supply chain and exploring all options as we seek to minimize the impact of tariffs,” said CEO Donald Allan Jr.
The manufacturer provides tools and industrial products to home improvement retailers, construction businesses and aerospace manufacturers.
The Connecticut-based company said it now expects 2025 adjusted profit of about $4.50 per share, compared to its previous forecast of $5.25, which excluded an impact from tariffs.
The company reported an adjusted profit of 75 cents per share in the first quarter, compared with analysts’ average estimate of 66 cents per share, according to data compiled by LSEG.
Total quarterly revenue was $3.74 billion, down over 3% from a year earlier, topping estimates of about $3.69 billion.
(Reporting by Anandita Mehrotra and Utkarsh Shetti in Bengaluru; Editing by Saumyadeb Chakrabarty)
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