appointed Chief Financial Officer of
Innovations Inc. works on substantial cost reductions as an equipment manufacturer to lead its finances.
The New Britain, Connecticut-based company said Monday that Patrick Hallinan would become CFO effective April 6. Mr. Hallinan will join Stanley Black & Decker after a 17-year career at household and safety-products maker Fortune Brands.
Meanwhile, Fortune Brands named David Barry as head of finance, effective March 2. Mr. Barry served as Senior Vice President of Finance and Investor Relations for Fortune Brands for approximately two years. Mr. Hallinan will remain CFO of Fortune Brands until March 2.
At Stanley Black & Decker, Mr. Hallinan will replace Corbin Walberger, who stepped down as interim finance chief last July when the previous CFO was Donald Allen Jr. Promoted to Chief Executive Officer, The company said Mr. Walberger will resume his former role as vice president of business development.
“Patrick is an experienced executive who has led global, high-performing finance functions at top consumer brands,” Mr. Allen said in a statement referring to the incoming CFO.
As CFO, Mr. Hallinan is set to receive a base salary of $800,000 and a one-time signing bonus of $350,000, the company said in a filing with regulators. He will also be eligible for a one-time restricted stock grant with a total grant date value of $2.65 million as well as an annual bonus with a target of 100% of base salary this fiscal year.
Mr Hallinan’s appointment follows Stanley Black & Decker’s announcement last July ambitious cost-cutting plan, which includes cuts of $1 billion by the end of this year and $2 billion by 2025. The company, whose brands include DeWalt and Craftsman Tools as well as Cub Cadet riding lawn mowers, said it is simplifying its structures and processes, reducing some expenses and streamlining operations. Mr Allen told analysts in October that the cost-cutting efforts, which included cutting the number of people, are “largely complete”.
During the quarter ended October 1, the company’s revenue rose 9% from the prior-year period to $4.1 billion, while profit rose to $845 million from $414 million a year earlier.
Stanley Black & Decker, which was able to cut inventory by $290 million in the quarter, cut its annual guidance Between 10 cents and 80 cents per share, from a range of 80 cents to $2.05 per share for diluted earnings per share under generally accepted accounting principles.
The company will report its fourth quarter next week.
Demand for Stanley Black & Decker products rose during the pandemic as consumers spent on home improvements and yard work, but waned last year as high inflation and a bleak economic outlook took their toll.
A key task for Mr. Hallinan will be addressing the company’s supply chain and inflation difficulties, said Tom Hayes, a senior equity research analyst at Northcoast Research Partners LLC. He will also focus on restoring investor confidence, Mr. Hayes said, noting that Stanley Black & Decker’s share price has fallen from about $175 a year ago to about $87. It was trading at $88.74 on Monday.
“I think Stanley will certainly continue to face a number of challenges on the financial side” that the incoming CFO will grapple with, Mr. Hayes said.
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