SBD's Quarterly Update (Q4 2017) ... Craftsman, FlexVolt

[Finance Guy]

“We expanded our exclusive FlexVolt system which offers the user the power of corded with the freedom of cordless. This innovation spearheaded and accelerated dual growth across corded products, 20-volt cordless products and across the FlexVolt range itself. DeWALT was the only provider with growth across corded products as well as low and high voltage cordless products concurrently. Our stable of brands continued to perform well on a global basis. With Stanley Black & Decker, MAC Tools all up single digits, while Proto, Vidmar and DeWALT all expanded double digits.”

Craftsman
“During our October earnings call, we provided an update on the development of our Craftsman distribution strategy. That update included confirmation that Ace, we’d support Craftsman across the hardware channel, and Lowes would support Craftsman across the home center channel. As we continue to develop and fine tune the strategy, we are pleased to confirm that we will also make Craftsman available via Amazon. With support from leading companies like Lowes, Ace and Amazon, we expect to make Craftsman available to far more users than any time in its 90-year history. Overall the support of the iconic Craftsman brand today is overwhelming.”

“We have to launch 2,000 Craftsman product around at the same time, and we’re capable of doing that. At the same time, we want to repatriate Craftsman manufacturing as much as possible for United States. So we made an acquisition in 2017 of the pre-eminent metal tool manufacturing Waterloo that is a dedicated Craftsman manufacturing facility which is one of the things we committed to. So we will bring up that manufacturing of Craftsman products. We will make more than half of those products in year one, and we’ll make probably more than half of these products in United States year one.

But as Don said, it will take probably a 36-month period before we can get to the point where we are making the same percentage [85%] of the Craftsman product as we make in our core. But I think over a three-year period we can certainly get there and we can repatriate much of that to the U.S. to stand behind the Craftsman Brand.”

DeWALT / FlexVolt
“If you back in time to when Stanley Black & Decker’s came together, you would look at DeWALT which was a fantastic brand franchise that probably believe was in a period of decline given the technology change where it offered (inaudible) and the world had moved to lithium.

Fast forward to where we are today and a couple of stats for you. We now make DeWALT in the United States which the competitors cannot do in power tools. We expanded that DeWALT brand promise to tremendous hand tools to storage products, lasers, all great products. We introduced our lithium ion answer in 2011 and ’12 and a stat that you wouldn’t be aware of; we’re now three times bigger in lithium than we ever were at our peak in NiCad’s. So that is an awesome statement.

We’ve introduced brushless at the same time. Brushless is now bigger than NiCad ever was. And on top of that we’ve improved our reliability, highest reliability in the industry, greatest number of innovations and excellence going on top of that, and you’re seeing what happens. The user who always loved DeWALT now has so many more reasons to love, embrace and endorse it, and we’re seeing the level commitment to DeWALT has never been higher and we’re pleased with that.”

 

[shanny19]

Thx for sharing. Lots to digest, but right off the bat, it's tough to see a setup where Ace is competitive with Amazon for the same SKU.

 

[Flattie]

Thanks for posting! Craftsman isn’t dead, just going through a rebirth. Looking forward to the next 36 months. Already been thinking about switching to team dewalt

 

[Finance Guy]

In a separate but related note, over at ToolGuyd yesterday Stuey posted about a new partnership between Dewalt and Klein whereby Klein-branded power tools (aimed at electricians and linemen) will be powered by Dewalt 20v Max batteries.

He also postulated a possible partnership between SBD and Klein whereby Klein could serve as a (USA-made) OEM for certain Craftsman hand tools...

http://toolguyd.com/klein-powered-by-dewalt-cordless-power-tools/

 

[KnurledNut]

I could see SBD sourcing domestic made pliers through Klein much the same way Home Depot did with the Wirepro line in times past.

 

[finn]

Thx for sharing. Lots to digest, but right off the bat, it's tough to see a setup where Ace is competitive with Amazon for the same SKU.

Ace is a 15 minute drive.

Amazon is, at best, three days, if you have Prime, at least around here.

Plus, you can handle the product at Ace.

 

[jgromada]

Sourcing hand tools from Klein would do a world of positive good to Craftsman's image. Not sure they will do that.

 

[Finance Guy]

Not sure they will do that.

Just curious why? I would expect them to source their pliers from either Klein, Channellock, Wilde, or Western Forge ... right?

 

[Buckgnarly]

Ace is a 15 minute drive.

Amazon is, at best, three days, if you have Prime, at least around here.

Plus, you can handle the product at Ace.

x2, Living in the boonies I LOVE Amazon, but returning tools and browsing will be done at Ace for sure!

 

[Trey T]

I would love to see the team up with Panasonic/Tesla battery in America and utilize the new battery cell 2170 (currently on Model 3 tesla)

 

[shawndp]

This is most excellent news for me! I want to say the worst of Craftsman is behind us. Amazon Prime is same day for me, and if Craftsman has decent customer service, the ability to get the tool the next day means I will be a more frequent customer. Right now, my warranty process requires a few hour drive and an international border.

 

[6PTsocket]

Thx for sharing. Lots to digest, but right off the bat, it's tough to see a setup where Ace is competitive with Amazon for the same SKU.

Amazon is not competitive on many things. I find better prices all over the place. Like ebay, the "free" shipping is built into the price and many can add the cost of Prime to that. With Bezos' quest to own the whole World, I find they are not nearly the universal bargain store they used to be. Seeng Craftsman at the same price as at Ace woukd not surprise me at all.

Sent from my SM-G900V using Tapatalk

 

[1982fxr]

And they bought Waterloo...

 

[Finance Guy]

And they bought Waterloo...

I have not been able to find any verification, but I and the transcript service both heard the comment as it is presented. Waterloo was acquired by a private equity firm for an undisclosed price a couple of years ago. I don't have any metrics to even guess what the value of the company would be worth, but if it was under - say, $100 million (?) - then perhaps the purchase was deemed insufficiently material to compel its own press release.

 

[Moparman390]

I was right on with the Amazon carrying Craftsman speculation.

 

[Ign]

"Brushless is now bigger than nicad ever was?"

Scary. Who writes this?

edit: actually the grammar is terrible throughout. Can't someone proof this before release??

 

[Finance Guy]

actually the grammar is terrible throughout. Can't someone proof this before release??

It's a transcript from a conference call ... I try to edit the big stuff, but not grammar.

 

[Two Door]

The transcript service doesn't seem to be native English speaking.

 

[WittHay]

The 2,000 products to be released at once is what interests me. A year ago there was speculation that Stanley Craftsman might be just lawn and garden equipment and rebranded Stanley carpentry tools. There has to be a quite a range of new Craftsman mechanics tools to have 2000 items to start with

 

[1982fxr]

The transcript service doesn't seem to be native English speaking.

I thought that too.

 

[Finance Guy]

The 2,000 products to be released at once is what interests me. A year ago there was speculation that Stanley Craftsman might be just lawn and garden equipment and rebranded Stanley carpentry tools. There has to be a quite a range of new Craftsman mechanics tools to have 2000 items to start with

SBD has been fairly explicit that the new Craftsman will be every bit as comprehensive as the former Sears Craftsman.

 

[Moparman390]

The 2,000 products to be released at once is what interests me. A year ago there was speculation that Stanley Craftsman might be just lawn and garden equipment and rebranded Stanley carpentry tools. There has to be a quite a range of new Craftsman mechanics tools to have 2000 items to start with

That was speculation from GJ members on similar threads with nothing to substantiate it. As Finance Guy said SBD has always been pretty straightforward with their intent, to sell the full range of tools. Even without SBD saying so common sense would dictate SBD would sell the full line of Craftsman as they alreay are manufacturer both hand and power tools, they wouldn't invest over a billion in the #1 brand in tools to not make those products. I would guess that rumor got started because Craftsman expands SBD's reach into lawn and garden, and that is an interest they have in picking up the brand, just not the only one.

 

[finn]

I thought that too.

I think it’s automated / voice recognition.....

 

[dkroth]

And they bought Waterloo...

I don't have any metrics to even guess what the value of the company would be worth, but if it was under - say, $100 million (?) - then perhaps the purchase was deemed insufficiently material to compel its own press release.

Is this Waterloo Industries, 1500 Waterloo Rd, Sedalia, MO 65301?

I count about 117 cars in a parking lot with a capacity of about 385. What's the revenue per employee for a manufacturing firm? $100 - $200k each?

"pre-eminent metal tool manufacturing Waterloo" By reputation and the info on their website Waterloo build metal boxes from sheet metal. I don't know much about manufacturing but metal forging seems a bit different from sheet metal work.

No doubt SBD know what they are doing; it just doesn't make complete sense to me.



.

 

[mikebaker1129]

Check out Stanley's website, at the bottom they list Waterloo as one of their brands.
I looked all over the net and all I could find was Waterloo was purchased by an equity firm.
Sounds like we know who will be making the Craftsman,Dewalt,Proto and Mac boxes.

 

[Finance Guy]

Sounds like we know who will be making the Craftsman,Dewalt,Proto and Mac boxes.

I am inclined to agree with you, but they do indentify the factory as a "dedicated Craftsman manufacturing facility".

 

[Moparman390]

If it's the same Waterloo they made toolboxes for Craftsman before and they will continue to make Craftsman tool boxes, ok, sounds good.

 

[kythri]

Just curious why? I would expect them to source their pliers from either Klein, Channellock, Wilde, or Western Forge ... right?

Why wouldn't they manufacture these themselves?

The 2,000 products to be released at once is what interests me. A year ago there was speculation that Stanley Craftsman might be just lawn and garden equipment and rebranded Stanley carpentry tools. There has to be a quite a range of new Craftsman mechanics tools to have 2000 items to start with

Well, considering a single socket is an item, I don't think it will be too hard for them to meet this number.

 

[Finance Guy]

Why wouldn't they manufacture these themselves

Ultimately they will ... however, to the best of my knowledge, SBD does not currently manufacture any pliers in the U.S. As such, they are likely to be outsourced initially.

 

[kythri]

Ultimately they will ... however, to the best of my knowledge, SBD does not currently manufacture any pliers in the U.S. As such, they are likely to be outsourced initially.

Or, they'll be imported until they tool up US production. To my knowledge, they haven't said there won't be any imported Craftsman - in fact, some of the statements you quoted above seem very explicitly clear that there will be some imported Craftsman stuffs. They've just said it's their desire to re-home USA production as much as possible.

 

[Moparman390]

Why wouldn't they manufacture these themselves?



Well, considering a single socket is an item, I don't think it will be too hard for them to meet this number.

I was thinking this too, every socket, extension, adapter, ratchet, wrench of various types, screw driver, pliers, and on and on will add up to 2,000 real quick. That sounds like a good start.

 

[Moparman390]

Or, they'll be imported until they tool up US production. To my knowledge, they haven't said there won't be any imported Craftsman - in fact, some of the statements you quoted above seem very explicitly clear that there will be some imported Craftsman stuffs. They've just said it's their desire to re-home USA production as much as possible.

I think this is exactly the right read on SBD's intentions.

 

[WittHay]

Well, considering a single socket is an item, I don't think it will be too hard for them to meet this number.

Its just that I remember looking at those huge 900? piece sets in the old Craftsman tool catalogs, and they seemed to contain every last mechanics hand tool that Craftsman made.

We will have to see what actually shows up in stores and online of the 2000 items.

 

[Farmall450]

Wow, awesome to hear.

 

[shelbysguns]

Is this Waterloo Industries, 1500 Waterloo Rd, Sedalia, MO 65301?

I count about 117 cars in a parking lot with a capacity of about 385. What's the revenue per employee for a manufacturing firm? $100 - $200k each?

"pre-eminent metal tool manufacturing Waterloo" By reputation and the info on their website Waterloo build metal boxes from sheet metal. I don't know much about manufacturing but metal forging seems a bit different from sheet metal work.

No doubt SBD know what they are doing; it just doesn't make complete sense to me.



.

They make craftsmans tool boxes. An essential part fo the craftsman line for many, and theyre right down the road from me. Have several friends who work there.

 

[Farmall450]

Thx for sharing. Lots to digest, but right off the bat, it's tough to see a setup where Ace is competitive with Amazon for the same SKU.

My dad bought an M12 vacuum today. $72 on Amazon, $60 at Farm & Fleet (a small chain of 38 midwest stores).

eBay almost always beats amazon on prices (as well as shipping and customer service).

 

[Stuey]

I've confirmed it, they did buy waterloo.

 

[Finance Guy]

I've confirmed it, they did buy waterloo.

I saw your post ... thank you!

 

[Stuey]

I saw your post ... thank you!

=)

I didn't go into detail in the ToolGuyd post, but the confirmation came from an official SBD rep, via email.

Unfortunately, I've got nothing else.

One more interesting tidbit from the earnings call was mention of more future acquisitions.

I think that SBD is going try to acquire more USA tool makers, likely former Craftsman tool makers who have a history of being able to produce good tools at Craftsman pricing.

 

[sbyrne92]

If they start making USA craftsman again. I’ll line up at the door. Tired of seeing china **** all around. At least make it in Taiwan. Interested to see how craftsman will fit into Lowe’s with their kobalt line. Seems like they wouldn’t want to infringe on their sales by offering to much craftsman branded hand tools. I like ACE. They’re just not as big as Lowe’s or Amazon though.