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Stanley Black & Decker (NYSE:SWK) on Thursday fell 4.6% after management lowered its earnings guidance for the year.

The tool maker cut its 2022 forecast for adjusted diluted earnings to a range of $4.15 to $4.65 a share from the earlier $5.00 to $6.00 a share, and compared with the consensus estimate of $5.44.

The company said its plan to cut costs worldwide resulted in $65 million of pretax savings during the quarter, while inventories declined by $290 million to end the period at $6.3 billion. Consumer demand weakened amid inflationary pressures, but the company saw continued strength in professional construction and industrial demand.

During the quarter, Stanley Black & Decker cut about 1,000 finance jobs amid broader layoffs of thousands of employees worldwide, The Wall Street Journal reported, citing people familiar with the matter.

“Our headcount reductions are largely complete. Inventory is now coming down. Cash generation was positive in September, and we believe this will continue in the fourth quarter and next year,” Donald Allan Jr., Stanley Black & Decker’s president and CEO, said in prepared remarks during a regularly scheduled conference call with investors.

For the third quarter, adjusted earnings of $0.76 a share beat Wall Street’s average estimate by $0.06. Revenue rose 9% from a year earlier to $4.1 billion on stronger demand and higher prices for its products.

The company’s stock this year has declined 59%, compared with a 21% drop for the S&P 500 index (SP500).

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