New Britain, Conn.-based toolmaker firm Stanley Black&Decker Inc. recently reported third-quarterly results broadly in line with S&P Global Ratings? expectations. Notably, the company continues its cost-reduction program delivering $215 million of pretax run-rate cost savings and reducing its inventory by approximately $300 million for the third quarter. These results are slightly offset by about a 4% organic revenue decline for the quarter and S&P Global Economics? updated macroeconomic forecasts. (see ?Economic Outlook U.S. Q4 2023: Slowdown Delayed, Not Averted,? published Sept. 25, 2023) We maintain our view that debt leverage will remain above 5x in 2023. Although we expect the company?s focus on cash flow generation, inventory optimization, and supply-chain cost initiatives will support deleveraging in the next
