(Reuters) – Tool maker Stanley Black & Decker missed third-quarter revenue estimates on Tuesday due to tepid demand and challenges in the automotive market, sending its shares down about 3% in premarket trade on Tuesday.
The company, best known for its power tools, also tightened its full-year profit forecast range, with the mid-point unchanged.
Its third-quarter profit still beat estimates as the company has been implementing cost-cuts such as headcount reductions over the last few years to help it navigate inflationary pressures.
Third-quarter revenue for its industrial unit, which serves customers in the automotive and aerospace industries, fell about 18% to $488 million from a year ago, hurt by a divestiture from its infrastructure business and weaker demand.
Overall revenue fell 5% to $3.75 billion, below analysts’ estimates of $3.80 billion, according to data compiled by LSEG.
It reported an adjusted profit of $1.22 per share, ahead of estimates of $1.05.
The company now expects annual adjusted profit of between $3.90 and $4.30 per share, from a previous range of $3.70 to $4.50 per share, accounting for charges related to its supply chain.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Devika Syamnath)