Stanley Black & Decker, Inc. (NYSE:SWK) Q4 2022 Earnings Call Transcript

Operator: Thank you. Our next question comes from the line of Eric Bosshard with Cleveland Research. Your line is now open.

Eric Bosshard: Good morning. Thanks. Curious on, Don, you talked about 2024 of $5 to $7 in rough frame. And I know six months ago, that was the concept for 2023. What’s so notably different in 2023 that pushed out that level of earnings to 2024?

Don Allan: Yeah. I would say there’s a couple of dynamics. I mean, obviously, volume continues to be challenging. We think volume is going to be challenging for 2023. I talked about what I think is going to happen with the Pro market in 2023, and we’ll see a modest recession aligned with what the historical recessions are for Stanley Black & Decker of down 3% to 5%. Clearly, that’s a significant factor in all of this. We’re also — we’ve decided to be much more aggressive in the inventory reduction than we were thinking three, five months ago, where we were going to be more methodical in that reduction. We’re being more aggressive. We’re really trying to get a large part of this done by the middle of 2023 to get production levels, as I said, back to normal in the back half of 2023. And those are probably the two main drivers of the difference in the timing.

Eric Bosshard : Great. That’s helpful color.

Don Allan : Thank you.

Operator: Thank you. I would now like to turn hand the call back over to Dennis Lange for closing remarks.

Dennis Lange: Shannon, thanks. We’d like to thank everyone again for their time and participation on the call. Obviously, please contact me if you have further questions. Thank you.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.