July 30 (Reuters) - Stanley Black & Decker SWK.N on Tuesday beat Wall Street estimates for second-quarter profit, helped by higher margins for its products arising from cost-savings measures implemented.
The Connecticut-based company provides hand tools, power tools and industrial products to home improvement retailers, construction businesses and manufacturers.
It reported an adjusted profit of $1.09 per share, compared with analysts' estimates of 84 cents per share, as per LSEG data.
The company's cost-cutting measures, including headcount reductions and paring supply chain-related expenses, implemented over the last few years and price hikes for certain products helped it inflationary pressures.
Its cost-reduction program is expected to gain pre-tax run rate savings of $1.5 billion by the end of 2024 and $2 billion by the end of 2025.
"We remain focused on implementing supply chain improvements designed to reshape our cost structure and expand margins, delivering earnings growth and generating strong cash flow," said CEO Donald Allan Jr.
The company lifted the lower end of its adjusted annual profit forecast range to $3.70 to $4.50 per share, from the previous $3.50 to $4.50 per share.
It, however, cut its annual GAAP profit forecast to $0.90 to $2.00 per share, from its earlier view of $1.60 to $2.85, owing to quarterly environmental charges and restructuring costs.
Total revenue for the quarter fell 3% to $4.024 billion in the quarter on softening demand, but came in slightly above estimates of $4.016 billion, as per LSEG data.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shilpi Majumdar and Shailesh Kuber)