Latest news with #costreduction
Yahoo
3 hours ago
- Business
- Yahoo
Stanley Black & Decker, Inc. (SWK): A Bull Case Theory
We came across a bullish thesis on Stanley Black & Decker, Inc. on Deep Value Capital's Substack. In this article, we will summarize the bulls' thesis on SWK. Stanley Black & Decker, Inc.'s share was trading at $69.80 as of July 15th. SWK's trailing and forward P/E were 29.58 and 15.82 respectively according to Yahoo Finance. Stanley Black & Decker (SWK), widely known for its power tools and iconic brands like DEWALT, CRAFTSMAN, and BLACK+DECKER, is undergoing a quiet but compelling transformation. The company has already executed $1.7 billion of a $2 billion cost-reduction plan, with gross margins rebounding to 31.2%—up 1,200bps from the trough—while operating leverage improves and inventories fall. Though 87% of revenue comes from its Tools & Outdoor division, its smaller Engineered Fastening segment serves critical applications in aerospace, auto, and industrial manufacturing. Despite its market leadership and ties to reshoring, infrastructure, and automation, the stock remains down over 65% from its 2021 highs and trades at less than 7× peak free cash flow. Management forecasts mid-single-digit organic growth, more than double industry norms, supported by housing recovery, falling interest rates, and potential policy tailwinds. Risks include prolonged weakness in housing, unresolved tariff headwinds of ~$100M annually, leadership transition friction with a new CEO starting in October, and the broader risk of a recession derailing tool demand. However, the turnaround strategy is showing real progress: core brands are gaining share, margins are expanding, and the balance sheet is cleaner. By 2028, with normalized 11% FCF margins on ~$17.6B revenue, the company could generate ~$1.94B in FCF. Applying a modest 18× multiple suggests a $34.9B valuation, over 3× today's $11.4B market cap—implying 205% upside, or a 37% CAGR. Without assuming a cyclical boom, Stanley Black & Decker represents a fundamentally de-risked, attractively priced turnaround story tied closely to America's rebuilding cycle. Previously we covered a standout on IHS Holding Limited by the same author in May 2025, which highlighted its CPI-linked tower model and strong FCF potential across emerging markets. The company's stock price has appreciated approximately by 7.5% since our coverage. The author uses an identical approach in the Stanley Black & Decker thesis, emphasizing its margin recovery and cost discipline. Stanley Black & Decker, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held SWK at the end of the first quarter which was 34 in the previous quarter. While we acknowledge the potential of SWK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
The Sun
a day ago
- Automotive
- The Sun
Struggling major carmaker to axe 500 jobs in ‘difficult decision' just 3 months after bombshell merger
A MAJOR carmaker is set to axe up to 500 jobs just three months after a shock merger. Back in April, the merger between a luxury supercar maker and an electric car start-up came as a shock. The merger between McLaren and Forseven could result in up to 500 job losses as part of a cost reduction process. It comes after several years of financial difficulty for the supercar company. After the pandemic it faced near bankruptcy in 2020, leading to significant restructuring. Sales continued to plummet in 2023, with the merger hoping to restore its financial position. A spokesperson said that they were proposing "a potential workforce reduction of up to 500 roles across the combined organisation". They added: "The realignment of roles and responsibilities is a necessary step in preparing for the coming together of our two businesses and will ensure that our operations are streamlined to enable resilience and success over the long term." The company said they would provide "comprehensive support and guidance to all those affected" while they try to minimise the impact on employees. "Looking ahead, we remain dedicated to expanding our portfolio of luxury vehicles and delivering the exceptional customer experiences that honour the McLaren legacy," the company said. A consultation process with its 2,500 employee workforce is already underway according to The Evening Standard. It reported that roles are expected to be cut in departments like design and engineering, IT, legal and HR. Jobs that are duplicated across the two companies are most at risk. The cuts could affect employees at McLaren's main base in Woking, in addition to its Bicester, Leamington and Surrey sites. McLaren merged with Forseven in April to form McLaren Group Holdings, with Forseven CEO Nick Collins leading. While McLaren has a long-standing history as a leader in the supercar market, Forseven is still relatively new. The British start-up includes more than 700 industry professionals who are working to launch a luxury range by 2030. An announcement on the Forseven website reads: "Forseven has merged with McLaren Automotive with one clear vision: to become a world-beating automotive business." Abu Dhabi investment company CYVN Holdings is set to finance the new company. As part of the merger, an estimated 300 roles have been created which could reduce the impact of redundancies. Jassem Mohamed Bu Ataba Al Zaabi, Chairman of CYVN hopes to redefine the high-performance and luxury sectors. In a press rele a se announcing the merger, the company said it hoped to "transform McLaren into a high-performing British automotive business on the global stage." Jassem Al Zaabi said: 'I'm personally committed to making this vision a reality. It isn't just about investing, it is about shaping the future of McLaren as a brand, as a business and its place on the global automotive map. "We want to - and we will - push boundaries and deliver groundbreaking innovations that drive real progress in the sector. 'This is the start of an exciting new era for McLaren as a car brand and an automotive business." In addition to McLaren's Automotive business, he also promised to continue working on McLaren Racing's long-term success. This includes "supporting the team in building on their successes, winning more podiums, and inspiring fans worldwide." They added that more details about the vision and strategy going forward will be announced later this year. 2
NHK
16-07-2025
- Politics
- NHK
US nominee to be UN ambassador says he will work to counter China
US President Donald Trump's nominee for ambassador to the United Nations has said he will push to reduce costs and oppose China's growing influence at the global body. Mike Waltz made the comments on Tuesday, while attending a US Senate confirmation hearing on his appointment. Waltz served as national security advisor at the beginning of Trump's second term. But the president appointed him as UN ambassador in May amid criticism over Waltz's use of a private messaging app that resulted in the leak of information about a military operation. Waltz criticized the UN at the Senate hearing, saying, "The UN has ballooned to over 80 agencies with overlapping missions that waste resources." He also said that if confirmed he will push for cost reductions and other reforms. Waltz added he was "confident we can make the UN great again," under Trump's leadership. He also spoke about China, which is the second-largest financial contributor to the UN after the US, and is expanding its influence. Waltz said he supports any initiative to "block and tackle Chinese Communist Party influence." Senator Jeanne Shaheen of the opposition Democratic Party stressed in response that China is moving in to fill the void as the Trump administration presses ahead with budget cuts related to the UN and foreign aid. The senator added that a consistent policy is needed to push back against China's influence.
Yahoo
11-07-2025
- Business
- Yahoo
Intel layoffs surpass 1,600 across US
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Intel Corp. is laying off approximately 1,666 employees across four states this month as part of a company-wide restructuring effort to reduce costs and simplify operations. 'We are taking steps to become a leaner, faster and more efficient company,' Intel said in an email July 9. 'Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.' The job cuts, which begin to take effect July 11, will affect hundreds that work at or report to Intel in California, Oregon, Texas and Arizona, according to recent Worker Adjustment and Retraining Notification filings. About half of those affected — roughly 855 — are based out of Intel's offices and facilities in Santa Clara and Folsom, California. The company is also cutting 529 employees across its four campuses in or near Hillsboro, Oregon, considered to be the heart of the company's research and development operations. Additionally, Intel has given recent layoff notices to 172 workers in Chandler, Arizona and 110 in Austin, Texas, according to WARN filings as of July 11. A spokesperson declined to elaborate on which departments or segments of the company will be affected. In late June, Intel said it will 'wind down' its automotive business within its client computing group. The chipmaker has also started sending layoff notices to hundreds of workers in Israel, where Intel employs roughly 4,000 at its Kiryat Gat campus, Israel-based news outlet Ynet reported. One of CEO Lip-Bu Tan's priorities since taking over in March has been to refocus Intel's core products for a new era of computing shaped by artificial intelligence and reasoning models. Intel, known for its personal computer processors, has lagged behind competitors AMD and Nvidia in the evolving semiconductor market. It reported a net loss of $18.8 billion for 2024, driven in part by its struggles to transition to smaller, more efficient chip designs. 'We are seen as too slow, too complex and too set in our ways — and we need to change,' Tan said in a company-wide letter April 24. He detailed plans to become a more engineering-focused company and remove layers of teams, which has created "unnecessary bureaucracy that slows us down.' Long-term, Tan said he also wants to refine Intel's AI strategy with a focus on emerging areas of interest and to build trust with foundry customers. 'There is no way around the fact that these critical changes will reduce the size of our workforce,' Tan wrote in April. 'This will begin in Q2 and we will move as quickly as possible over the next several months. More details of the changes are likely to come during Intel's upcoming investor call, which is scheduled for July 24. The changes will begin to take place July 11, affecting mostly workers in California and Oregon. Recommended Reading Intel plans to lay off more than 500 Oregon workers
BBC News
11-07-2025
- Business
- BBC News
Council seeks ideas as Beaumanor Hall expected to make £480k loss
A council is seeking ideas to reduce the costs of a historic Leicestershire venue, which is expected to make a £480,000 loss this Hall - built between 1842 and 1854 in Woodhouse - was purchased by Leicestershire County Council in 1974 and has been used as a venue for weddings and other Grade II listed building has never operated at a profit, but the authority said it now wanted to improve the financial position "given growing pressure on the council's finances". A plan to discuss the future options for the venue with local schools, residents, businesses and other groups, is due to be discussed at a cabinet meeting. Helen Butler, cabinet member for resources, said: "The site has a lot of potential. It's currently operating at a loss to the taxpayer, and that's why we want to open up the conversation on what we could do differently." 'Vital council funds' Beaumanor Hall - which was requisitioned by the War Office as a secret listening station to intercept encrypted enemy signals - had to close for ten weeks in April due to structural concerns with the chimneys of the main building. It has since reopened after initial that temporary closure, the site was forecast to make a loss of £449,000, according to a council report, but that figure is now estimated to be more than £480, council is proposing an eight-week consultation from August, involving schools, other customers, the general public and specialist operators within the were considered a "key customer" of the hall, with about 16,000 children using the site each year - the majority for residential venue also employs about 121 staff members who would also be consulted on its future. Butler added: "We deliberately haven't set out any options at this stage so that this can be genuinely open engagement. "It's about looking at what's possible and how we can get to a point where vital council funds don't need to be spent on running the hall."The plan will be discussed at a cabinet meeting on 15 July.
