(Reuters) -Power tools maker Stanley Black & Decker lowered its annual profit forecast on Tuesday, citing higher production costs, sending its shares down nearly 4% in premarket trading.
As companies adjust to President Donald Trump’s changing tariff policies through supply chain and pricing measures, production costs have increased.
The company, however, said it expects the costs to normalize in the fourth quarter.
Stanley CFO Patrick Hallinan said the company is executing targeted commercial strategies and supply chain adjustments to offset the impact of tariffs.
It now forecasts 2025 adjusted profit of $4.55 per share, down from its prior estimate of $4.65 per share.
Wall Street analysts on average expect the company to report full-year adjusted profit of $4.61 per share, according to data compiled by LSEG.
Net sales in its largest segment, Tools & Outdoor, which makes power tools and lawn and garden equipment, were unchanged from a year earlier at $3.26 billion.
The Connecticut-based company had earlier said that it anticipates the impact of a subdued consumer do-it-yourself (DIY) market environment and global tariff disruption on its third-quarter organic revenue.
On an adjusted basis, it earned a profit of $1.43 per share in the third quarter, beating analysts’ estimates of $1.18 per share.
It posted quarterly revenue of $3.76 billion, marginally below analysts’ estimates of $3.77 billion.
(Reporting by Parth Chandna in Bengaluru; Editing by Vijay Kishore)
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