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Stanley Black and Decker Inc

Stanley Black and Decker Inc (SWK)

90.465
4.08
( 4.72% )
Updated: 11:18:44

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Key stats and details

Current Price
90.465
Bid
-
Ask
-
Volume
646,826
86.17 Day's Range 90.52
76.2611 52 Week Range 104.21
Market Cap
Previous Close
86.39
Open
86.39
Last Trade
3
@
90.5
Last Trade Time
11:18:43
Financial Volume
$ 57,489,727
VWAP
88.8797
Average Volume (3m)
1,482,849
Shares Outstanding
153,878,739
Dividend Yield
3.58%
PE Ratio
-44.60
Earnings Per Share (EPS)
-2.02
Revenue
15.78B
Net Profit
-310.5M

About Stanley Black and Decker Inc

Stanley Black & Decker Inc is a manufacturer of hand and power tools. The company operates three business segments: tools and storage, security, and industrial. Tools and storage, the largest segment by revenue, sells hand tools and power tools to professional end-users, distributors, retail consume... Stanley Black & Decker Inc is a manufacturer of hand and power tools. The company operates three business segments: tools and storage, security, and industrial. Tools and storage, the largest segment by revenue, sells hand tools and power tools to professional end-users, distributors, retail consumers, and industrial customers. Security installs electronic security systems and provides electronic security services including alarm monitoring and video surveillance. Industrial sells engineered fastening products such as stud-welding systems, blind inserts and tools, and engineered plastic and mechanical fasteners. The largest end market is the United States of America. Show more

Sector
Cutlery, Handtools,gen Hrdwr
Industry
Cutlery, Handtools,gen Hrdwr
Headquarters
New Britain, Connecticut, USA
Founded
1970
Stanley Black and Decker Inc is listed in the Cutlery, Handtools,gen Hrdwr sector of the New York Stock Exchange with ticker SWK. The last closing price for Stanley Black and Decker was $86.39. Over the last year, Stanley Black and Decker shares have traded in a share price range of $ 76.2611 to $ 104.21.

Stanley Black and Decker currently has 153,878,739 shares outstanding. The market capitalization of Stanley Black and Decker is $13.29 billion. Stanley Black and Decker has a price to earnings ratio (PE ratio) of -44.60.

SWK Latest News

3 out of 4 Orlando-Based Tradespeople Say that Investment in Their Tools Was a Barrier to Beginning Their Career, DEWALT® Tool Talk Survey Finds

3 out of 4 Orlando-Based Tradespeople Say that Investment in Their Tools Was a Barrier to Beginning Their Career, DEWALT® Tool Talk Survey Finds PR Newswire TOWSON, Md., July 24, 2024 Amidst a...

Pepperoni Ranked Favorite Pizza Topping, According to New BLACK+DECKER Pizza Pulse Survey

Pepperoni Ranked Favorite Pizza Topping, According to New BLACK+DECKER Pizza Pulse Survey PR Newswire TOWSON, Md., July 16, 2024 Nearly three quarters of respondents say the ideal pizza night is...

STANLEY® National Survey Finds that Nearly Half of Residential Trade Pros Would Rather Go Without their Phone, Wallet or Keys than their Tape Measure

STANLEY® National Survey Finds that Nearly Half of Residential Trade Pros Would Rather Go Without their Phone, Wallet or Keys than their Tape Measure PR Newswire TOWSON, Md., July 10, 2024 In...

CRAFTSMAN®, Ace Hardware Foundation and Joe Gibbs Racing Rev up for the 18th Annual Racing for a Miracle Program, Supporting Children's Miracle Network (CMN) Hospitals

CRAFTSMAN®, Ace Hardware Foundation and Joe Gibbs Racing Rev up for the 18th Annual Racing for a Miracle Program, Supporting Children's Miracle Network (CMN) Hospitals PR Newswire CHICAGO, July...

Stanley Black & Decker Announces Release Date for Second Quarter 2024 Earnings

Stanley Black & Decker Announces Release Date for Second Quarter 2024 Earnings PR Newswire NEW BRITAIN, Conn., June 24, 2024 NEW BRITAIN, Conn., June 24, 2024 /PRNewswire/ -- Stanley Black...

PeriodChangeChange %OpenHighLowAvg. Daily VolVWAP
11.3751.5433830957589.0991.6886.02111682087.29920547CS
49.06511.136363636481.491.6877.7139003384.01482184CS
125.5256.5045914763484.9493.33577.7148284985.29533597CS
26-3.305-3.5245814226393.7798.2877.7142605188.47634469CS
52-5.765-5.9908552426596.23104.2176.2611140845189.33196724CS
156-115.355-56.0465455252205.82206.90570.241606634109.06674156CS
260-61.905-40.628076393152.37225701465417124.94300818CS

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SWK Discussion

View Posts
whytestocks whytestocks 4 years ago
BREAKING NEWS: $SWK 2 Very Bullish Signs for U.S. Manufacturing

Heading into the third-quarter earnings season, investors in the manufacturing sector have cause for optimism. The economy looks set for a strong bounce in growth, and other leading indicators are suggesting there's potential upside for certain industries and companies in the U.S. manufactu...

Read the whole news SWK - 2 Very Bullish Signs for U.S. Manufacturing
👍️0
whytestocks whytestocks 5 years ago
News: $SWK Here's Why iRobot Stock Is Down Nearly 40% in a Year

One of the biggest questions that growth stocks face is whether their growth rate is sustainable or not. That's exactly the question being asked by investors in consumer robot company iRobot (NASDAQ: IRBT) after its third-quarter results. Let's look at what happened with one of the biggest ...

Find out more SWK - Here's Why iRobot Stock Is Down Nearly 40% in a Year
👍️0
whytestocks whytestocks 5 years ago
News: $SWK Stanley Black & Decker Reports 2Q 2019 Results

NEW BRITAIN, Conn. , July 23, 2019 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) today announced second quarter 2019 financial results. 2Q'19 Revenues Totaled $3.8 Billion , Up 3% Versus Prior Year, Driven By Organic Growth And Acquisitions Operating Margin Rate Was...

Read the whole news Stanley Black & Decker Reports 2Q 2019 Results
👍️0
burton60 burton60 7 years ago
Hard-hitting New Britain sweet
👍️0
Drmicrocap Drmicrocap 7 years ago
IN THE NEWS: SWK beats by .03
👍️0
Drmicrocap Drmicrocap 7 years ago
IN THE NEWS: SWK
👍️0
Drmicrocap Drmicrocap 8 years ago
In The News: SWK
👍️0
Drmicrocap Drmicrocap 8 years ago
"Whisper Number"
👍️0
Drmicrocap Drmicrocap 8 years ago
"Whisper Number"
👍️0
Drmicrocap Drmicrocap 8 years ago
Stanley Black & Decker Reports 4Q 2015 Results
PR Newswire Stanley Black & Decker
January 28, 2016 6:00 AM
????
NEW BRITAIN, Conn., Jan. 28, 2016 /PRNewswire/ -- Stanley Black & Decker (SWK) today announced full year and fourth quarter 2015 financial results.

Full Year Revenues Totaled $11.2 Billion Reflecting 6% Organic Growth Offset By 7% Currency Impact
Full Year Operating Margin Rate Expanded 90 Basis Points To 14.2%
Full Year Diluted GAAP EPS Was $5.92, Up 10% From 2014 As Strong Operational Performance More Than Offset $220 Million Of Currency Headwinds
2015 Free Cash Flow Of $871 Million; Working Capital Turns Maintained At 9.2
4Q'15 Revenues Totaled $2.8 Billion With 1% Organic Growth
4Q'15 Operating Margin Rate Expanded 100 Basis Points To 14.2%
4Q'15 Diluted GAAP EPS Was $1.78, Up 30% From 4Q'14 As Solid Operational Performance Combined With Lower Tax, Share Count And Restructuring More Than Offset $50 Million Of Currency Headwinds
Expect 2016 Full Year Diluted EPS Of $6.00 To $6.20 On A GAAP Basis And Free Cash Flow Conversion Of Approximately 100%
4Q'15 Key Points:

Net sales for the quarter were $2.8 billion, down 5% versus prior year, as price (+1%) was more than offset by currency (-6%).

Gross margin rate for the quarter was 35.6%, up from prior year 35.2% as price, productivity, cost actions and commodity deflation more than offset unfavorable currency.

SG&A expenses were 21.5% of sales compared to 22.1% in 4Q'14 reflecting tight cost management.

Operating margin rate was 14.2% compared to 13.2% in 4Q'14, as actions to improve profitability more than offset $50 million of unfavorable currency.

Restructuring charges for the quarter were $3.7 million compared to $24.4 million in 4Q'14.

Tax rate was 12.7% compared to the 4Q'14 rate of 17.6% as a result of adjustments to tax positions relating to undistributed foreign earnings and the impact of certain net operating losses that have become realizable.

Average diluted shares outstanding for the quarter were 150.0 million versus 160.0 million a year ago, reflecting the impact of share actions.

Working capital turns for the quarter were 9.2 consistent with 4Q'14 as lower organic growth in the quarter constrained the potential for year over year working capital turns improvement.
Stanley Black & Decker's Chairman and CEO, John F. Lundgren, commented, "We are pleased with our full year financial results, having achieved 6% organic growth and 10% earnings per share growth amidst a very challenging operating environment. By maintaining our focus on innovation and controlling key operational levers such as price, cost and product mix, we delivered noteworthy operating leverage despite significant foreign currency headwinds. We concluded 2015 with a solid fourth quarter, expanding margins, generating significant free cash flow and posting positive organic growth in the face of ongoing weakness in some key markets.

"As we look forward, we believe we are well positioned to manage through a continued difficult environment by leveraging our world-class franchises and brands to deliver solid organic growth and strong free cash flow while maintaining our disciplined and shareholder friendly approach to capital allocation."

4Q'15 Segment Results



($ in M)
4Q'15 Segment Results


Sales
Profit
Profit
Rate






Tools & Storage
$1,831
$303.9
16.6%






Security
$538
$68.8
12.8%






Industrial
$477
$85.5
17.9%



Tools & Storage net sales decreased 3% versus 4Q'14 as volume (+2%) and price (+1%) were more than offset by unfavorable currency (-6%). All regions posted organic growth with North America +3%, Europe +6%, and the emerging markets +1%. The U.S. construction tool market remained healthy and new products and brand extensions generated share gains in North America despite downward pressure in the industrial channels and Canada. Solid commercial momentum continued in Europe as share gains from new products and an expanded retail footprint produced another quarter of above-market organic growth. Organic growth within the emerging markets remained positive reflecting the favorable impact of pricing and the continued success of our mid-price-point product releases amidst a series of challenging end markets, including Brazil, Russia and China. Overall Tools & Storage segment profit rate was 16.6%, up from the 4Q'14 rate of 16.0%, as volume leverage, price, productivity, cost management and lower commodity prices more than offset currency pressures.

Security net sales decreased 9% versus 4Q'14 as price (+1%) was more than offset by lower volumes (-5%) and currency (-5%). Higher installation revenues in a number of countries and a stable recurring revenue portfolio resulted in Europe posting organic growth of 3%, Europe's fifth consecutive quarter of flat or positive organic growth. Order rates in Europe were again strong, up double-digits, while recurring revenue attrition remained solidly within the target range of 10-12%. North America's organic revenues declined 6% due primarily to lower volumes within the commercial electronic security business as 4Q'14 benefited from a large retail installation. Similar to Europe, orders within the North American commercial electronic security business were strong. Emerging markets organic revenues declined due to the ongoing relatively weak market conditions in China. Overall Security segment profit rate was 12.8%, up 100 basis points versus prior year, primarily due to improved operating performance within Europe. The segment profit rate improved 90 basis points sequentially as a result of continued margin expansion within Europe and improved operating performance in the North America business.

Industrial net sales decreased 7% versus 4Q'14 as price (+1%) was more than offset by lower volumes (-2%) and currency (-6%). Engineered Fastening's organic revenues declined 3% as strong global automotive revenues were more than offset by lower electronics and industrial volumes. Infrastructure organic revenues were up 2% as increased Oil & Gas volumes from higher North American on-shore pipeline project activity more than offset lower Hydraulic Tools volumes due to a difficult scrap steel market. Overall Industrial segment profit rate was 17.9%, up 210 basis points from the 4Q'14 rate, as productivity gains and cost control, particularly within Engineered Fastening, more than offset the impacts of currency and lower Hydraulic Tools volumes.
President and Chief Operating Officer, James M. Loree, commented, "Our Tools & Storage team delivered 3% organic growth for the quarter, buoyed by continued strength within North American and European retail channels, despite tough comparables and significant headwinds from a weak industrial end market and within the emerging markets. With respect to the latter, the success of our mid-price point products combined with strong pricing actions allowed us to outperform underlying market growth. The 8% organic growth in Tools & Storage for the year is a testament to the strength and momentum of this world class franchise. Also noteworthy was Engineered Fastening's ability to drive outsized organic growth within automotive and generate margin expansion in the quarter despite overall lower volumes. Our Security business demonstrated another quarter of forward progress. Europe delivered positive organic growth, year-over-year margin improvement with margins approaching 10%, strong order rates and attrition at targeted levels for the quarter. Our focus within Security North America remains squarely on improving field productivity where we took another step forward in the quarter evidenced by sequential margin improvement."

2016 Outlook

Donald Allan Jr., Senior Vice President and CFO, commented, "2015 was a strong year in terms of operational execution and 2016 will require a similar effort as we expect continued challenging macroeconomic conditions. Maintaining our focus on operational excellence, and making smart investments to support organic growth while proactively mitigating significant currency headwinds position us to deliver approximately 3% organic growth and EPS of $6.00 - $6.20 (up approximately 3% at the mid-point) in 2016."

The following summarizes key 2016 planning assumptions:

Organic growth of approximately 3% (approximately +$0.45 to $0.50 EPS)
Commodity deflation, cost actions and productivity (approximately +$0.45 to $0.50 EPS)
Lower average share count, including approximately $300 million of share repurchases in 2016 (approximately +$0.13 EPS)
Foreign exchange headwinds of approximately $170 - $190 million (approximately - $0.85 to $0.95 EPS)
Restructuring charges and the tax rate will be relatively consistent with 2015 levels
Free cash flow conversion approximating 100%
Mr. Allan added, "Our 2016 outlook maintains the key elements from our three year financial outlook presented in May 2015, namely above market organic growth, operational efficiency, EPS expansion and improved cash flow return on investment, while incorporating today's global growth and foreign exchange outlook. In addition, we remain committed to our long-term capital allocation plan of returning approximately 50% of free cash flow to shareholders through dividends and opportunistic share repurchases and deploying the balance towards acquisitions."

The Company will host a conference call with investors today, January 28, 2016 at 8:00 am ET. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.

You can also access the slides via the Stanley Black & Decker Investor Relations iPad & iPhone app from the Apple App Store by searching for "SWK Investor Relations."

The call will be accessible by telephone within the U.S. at (877) 930-8285, from outside the U.S. at +1 (253) 336-8297, and via the Internet at www.stanleyblackanddecker.com. To participate, please register on the web site at least fifteen minutes prior to the call and download and install any necessary audio software. Please use the conference identification number 19339634. A replay will also be available two hours after the call and can be accessed at (855) 859-2056 or +1 (404) 537-3406 using the passcode 19339634. The replay will also be available as a podcast within 24 hours and can be accessed on our website and via iTunes.

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.



Contact:
Greg Waybright

Vice President, Investor & Government Relations

greg.waybright@sbdinc.com

(860) 827-3833


View photo
.Stanley Black & Decker. (PRNewsFoto/Stanley Black & Decker)
These results reflect the Company's continuing operations. In 4Q'14, the Company classified the results of the Security segment's Spain and Italy operations as held for sale based on management's intention to sell these operations. In July 2015, the Company completed the sale of these operations. The operating results of Security Spain and Italy have been reported as discontinued operations for 2014 and through the date of sale for 2015. In 3Q'13, the Company classified two small businesses within the Security and Industrial segments as held for sale based on management's intention to sell these businesses; these businesses were sold during 2014. The operating results of these businesses have been reported as discontinued operations through the date of sale for 2014. Total sales reported as discontinued operations were $39.4 million and $118.4 million for 2015 and 2014, respectively, and $25.2 million for 4Q'14.

In the first quarter of 2015, the Company combined the Construction & Do-It-Yourself ("CDIY") business with certain complementary elements of the Industrial and Automotive Repair ("IAR") and Healthcare businesses (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. As a result of this change, the legacy CDIY segment was renamed Tools & Storage. The Company recast segment net sales and profit for 2014 to align with this change in organizational structure. There is no impact to the consolidated financial statements of the Company as a result of this change.

Organic sales growth is defined as total sales growth less the sales of companies acquired in the past twelve months and any foreign currency impacts. Operating margin is defined as sales less cost of sales and selling, general and administrative expenses. Management uses operating margin and its percentage of net sales as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. Normalized free cash flow, as reconciled from the associated GAAP measures on page 10 for 4Q'15 and 4Q'14 is considered a meaningful pro forma metric to aid the understanding of the Company's cash flow performance aside from the material impact of M&A-related payments and charges. Free cash flow conversion is defined as free cash flow divided by net income.

CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are not historical, including but not limited to those regarding the Company's ability to: (i) achieve full year 2016 EPS of $6.00 - $6.20 on a GAAP basis (including restructuring charges relatively consistent with 2015 levels); (ii) generate free cash flow conversion approximating 100%; (iii) improve the Company's cash flow return on investment; and (iv) over the long term, return approximately 50% of free cash flow to shareholders through dividends and opportunistic share repurchases while deploying the balance towards acquisitions (collectively, the "Results"); are "forward looking statements" and subject to risk and uncertainty.

The Company's ability to deliver the Results as described above is based on current expectations and involves inherent risks and uncertainties, including factors listed below and other factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations. In addition to the risks, uncertainties and other factors discussed in this press release, the risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied in the forward looking statements include, without limitation, those set forth under Item 1A Risk Factors of the Company's Annual Report on Form 10-K and any material changes thereto set forth in any subsequent Quarterly Reports on Form 10-Q, or those contained in the Company's other filings with the Securities and Exchange Commission, and those set forth below.

The Company's ability to deliver the Results is dependent, or based, upon: (i) the Company's ability to increase working capital turns during 2016; (ii) the Company's ability to deliver organic growth of approximately 3% in 2016; (iii) the Company's ability to generate approximately $0.45 to $0.50 of EPS through cost actions, commodity deflation and productivity; (iv) foreign exchange headwinds of approximately $170 - $190 million in 2016; (v) the Company's ability to achieve a tax rate relatively consistent with the 2015 tax rate; (vi) the Company's ability to keep restructuring charges relatively consistent with 2015 levels; (vii) the Company's ability to identify and close on appropriate acquisition opportunities within desired timeframes at reasonable cost; (viii) successful integration of existing and any newly acquired businesses and formation of new business platforms; (ix) the continued acceptance of technologies used in the Company's products and services; (x) the Company's ability to manage existing Sonitrol franchisee and Mac Tools relationships; (xi) the Company's ability to minimize costs associated with any sale or discontinuance of a business or product line, including any severance, restructuring, legal or other costs; (xii) the proceeds realized with respect to any business or product line disposals; (xiii) the extent of any asset impairments with respect to any businesses or product lines that are sold or discontinued; (xiv) the success of the Company's efforts to manage freight costs, steel and other commodity costs as well as capital expenditures; (xv) the Company's ability to sustain or increase prices in order to, among other things, offset or mitigate the impact of steel, freight, energy, non-ferrous commodity and other commodity costs and any inflation increases and/or currency impacts; (xvi) the Company's ability to generate free cash flow and maintain a strong debt to capital ratio; (xvii) the Company's ability to identify and effectively execute productivity improvements and cost reductions, while minimizing any associated restructuring charges; (xviii) the Company's ability to obtain favorable settlement of tax audits; (xix) the ability of the Company to generate earnings sufficient to realize future income tax benefits during periods when temporary differences become deductible, including realizing tax credit carry forward amounts within the allowable carry forward periods; (xx) the continued ability of the Company to access credit markets under satisfactory terms; (xxi) the Company's ability to negotiate satisfactory price and payment terms under which the Company buys and sells goods, services, materials and products; (xxii) the Company's ability to successfully develop, market and achieve sales from new products and services; and (xxiii) the availability of cash to complete approximately $300 million of share repurchases over the course of the year when conditions are right.

The Company's ability to deliver the Results is also dependent upon: (i) the success of the Company's marketing and sales efforts, including the ability to develop and market new and innovative products at the right price points in both existing and new markets; (ii) the ability of the Company to maintain or improve production rates in the Company's manufacturing facilities, respond to significant changes in product demand and fulfill demand for new and existing products; (iii) the Company's ability to continue improvements in working capital through effective management of accounts receivable and inventory levels; (iv) the ability to continue successfully managing and defending claims and litigation; (v) the success of the Company's efforts to mitigate any adverse earnings impact resulting from increases generated by, for example, increases in the cost of energy or significant Chinese Renminbi, Canadian Dollar, Euro, British Pound, Brazilian Real or other currency fluctuations; (vi) the geographic distribution of the Company's earnings; (vii) the commitment to and success of the Stanley Fulfillment System; and (viii) successful implementation with expected results of cost reduction programs.

The Company's ability to achieve the Results will also be affected by external factors. These external factors include: challenging global geopolitical and macroeconomic environment; the economic environment of emerging markets, particularly Latin America, Russia, China and Turkey; pricing pressure and other changes within competitive markets; the continued consolidation of customers particularly in consumer channels; inventory management pressures on the Company's customers; the impact the tightened credit markets may have on the Company or its customers or suppliers; the extent to which the Company has to write off accounts receivable or assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; increasing competition; changes in laws, regulations and policies that affect the Company, including, but not limited to trade, monetary, tax and fiscal policies and laws; the timing and extent of any inflation or deflation; the impact of poor weather conditions on sales; currency exchange fluctuations; the impact of dollar/foreign currency exchange and interest rates on the competitiveness of products and the Company's debt program; the strength of the U.S. and European economies; the extent to which world-wide markets associated with homebuilding and remodeling stabilize and rebound; the impact of events that cause or may cause disruption in the Company's supply, manufacturing, distribution and sales networks such as war, terrorist activities, and political unrest; and recessionary or expansive trends in the economies of the world in which the Company operates. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)













FOURTH QUARTER

YEAR TO DATE



2015

2014

2015

2014










NET SALES

$ 2,845.4

$ 2,982.5

$ 11,171.8

$ 11,338.6










COSTS AND EXPENSES









Cost of sales

1,831.2

1,931.4

7,099.8

7,235.9

Gross margin

1,014.2

1,051.1

4,072.0

4,102.7

% of Net Sales

35.6%

35.2%

36.4%

36.2%











Selling, general and administrative

610.6

658.3

2,486.4

2,595.9

% of Net Sales

21.5%

22.1%

22.3%

22.9%











Operating margin

403.6

392.8

1,585.6

1,506.8

% of Net Sales

14.2%

13.2%

14.2%

13.3%











Other - net

53.8

60.5

222.0

239.6

Restructuring charges

3.7

24.4

47.6

18.8

Income from operations

346.1

307.9

1,316.0

1,248.4











Interest - net

39.7

42.2

165.2

163.6










EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
306.4

265.7

1,150.8

1,084.8

Income taxes on continuing operations

39.1

46.7

248.6

227.1
NET EARNINGS FROM CONTINUING OPERATIONS
267.3

219.0

902.2

857.7











Less: net earnings (loss) attributable to non-controlling interests
0.1

(0.3)

(1.6)

0.5










NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE








TO COMMON SHAREOWNERS

267.2

219.3

903.8

857.2










NET LOSS FROM DISCONTINUED OPERATIONS
(1.7)

(73.5)

(20.1)

(96.3)










NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS
$ 265.5

$ 145.8

$ 883.7

$ 760.9




















BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK








Continuing operations

$ 1.83

$ 1.41

$ 6.10

$ 5.49

Discontinued operations

(0.01)

(0.47)

(0.14)

(0.62)

Total basic earnings per share of common stock
$ 1.82

$ 0.94

$ 5.96

$ 4.87










DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK








Continuing operations

$ 1.78

$ 1.37

$ 5.92

$ 5.37

Discontinued operations

(0.01)

(0.46)

(0.13)

(0.60)

Total diluted earnings per share of common stock
$ 1.77

$ 0.91

$ 5.79

$ 4.76










DIVIDENDS PER SHARE

$ 0.55

$ 0.52

$ 2.14

$ 2.04










AVERAGE SHARES OUTSTANDING (in thousands)








Basic

145,908

155,799

148,234

156,090

Diluted

150,020

160,013

152,706

159,737




STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)









January 2,

January 3,



2016

2015
ASSETS





Cash and cash equivalents

$ 465.4

$ 496.6

Accounts and notes receivable, net
1,331.8

1,396.7

Inventories, net

1,526.4

1,562.7

Assets held for sale

-

29.5

Other current assets

338.5

463.3

Total current assets

3,662.1

3,948.8

Property, plant and equipment, net
1,450.2

1,454.1

Goodwill and other intangibles, net
9,625.8

10,027.2

Other assets

570.4

419.0

Total assets

$ 15,308.5

$ 15,849.1












LIABILITIES AND SHAREOWNERS' EQUITY




Short-term borrowings

$ 7.6

$ 7.5

Accounts payable

1,533.1

1,579.2

Accrued expenses

1,261.9

1,221.9

Liabilities held for sale

-

23.4

Total current liabilities
2,802.6

2,832.0

Long-term debt

3,836.6

3,839.8

Other long-term liabilities

2,810.1

2,665.4

Stanley Black & Decker, Inc. shareowners' equity
5,811.6

6,429.1

Non-controlling interests' equity
47.6

82.8

Total liabilities and equity
$ 15,308.5

$ 15,849.1




STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)



















FOURTH QUARTER

YEAR TO DATE



















2015

2014

2015

2014

OPERATING ACTIVITIES











Net earnings from continuing operations


$ 267.3

$ 219.0

$ 902.2

$ 857.7


Net loss from discontinued operations


(1.7)

(73.5)

(20.1)

(96.3)


Depreciation and amortization


105.6

112.4

414.0

449.8


Changes in working capital1


503.5

433.2

(98.0)

(9.8)


Other



(46.5)

70.5

(15.8)

94.5


Net cash provided by operating activities


828.2

761.6

1,182.3

1,295.9



























INVESTING AND FINANCING ACTIVITIES











Capital and software expenditures


(131.3)

(111.6)

(311.4)

(291.0)


Proceeds from issuances of common stock


79.5

20.3

163.5

71.3


Net short-term (repayments) borrowings


(449.6)

(424.8)

1.2

(391.0)


Net investment hedge settlements


25.5

3.6

137.7

(61.4)


Cash dividends on common stock


(80.7)

(80.8)

(319.9)

(321.3)


Purchases of common stock for treasury


(9.7)

(7.5)

(649.8)

(28.2)


Acquisitions, net of cash acquired


(33.6)

-

(51.1)

(3.2)


Payments on long-term debt


-

(45.7)

(16.1)

(46.6)


Effect of exchange rate changes on cash


(52.1)

(84.0)

(132.9)

(147.1)


Other



(4.1)

(21.3)

(34.7)

(77.0)


Net cash used in investing and financing activities


(656.1)

(751.8)

(1,213.5)

(1,295.5)














Increase (Decrease) in Cash and Cash Equivalents


172.1

9.8

(31.2)

0.4














Cash and Cash Equivalents, Beginning of Period


293.3

486.8

496.6

496.2














Cash and Cash Equivalents, End of Period


$ 465.4

$ 496.6

$ 465.4

$ 496.6



























Free Cash Flow Computation2










Operating cash flow


$ 828.2

$ 761.6

$ 1,182.3

$ 1,295.9

Less: capital and software expenditures


(131.3)

(111.6)

(311.4)

(291.0)

Free cash flow (before dividends)


$ 696.9

$ 650.0

$ 870.9

$ 1,004.9

Merger & Acquisition-related charges and payments4


14.6

36.1

83.3

152.2

Free cash flow, normalized (before dividends)3


$ 711.5

$ 686.1

$ 954.2

$ 1,157.1


1
Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.


2,3
Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. Normalized free cash flow, as reconciled above, is considered a meaningful pro forma metric to aid the understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities.


4
Merger & Acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.




STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)




FOURTH QUARTER

YEAR TO DATE



2015

2014

2015

2014
NET SALES









Tools & Storage

$ 1,830.9

$ 1,880.0

$ 7,140.7

$ 7,033.0

Security

538.0

589.9

2,092.9

2,261.2

Industrial

476.5

512.6

1,938.2

2,044.4

Total

$ 2,845.4

$ 2,982.5

$ 11,171.8

$ 11,338.6




















SEGMENT PROFIT









Tools & Storage

$ 303.9

$ 300.6

$ 1,170.1

$ 1,074.4

Security

68.8

69.4

239.6

259.2

Industrial

85.5

80.9

339.9

350.6

Segment Profit

458.2

450.9

1,749.6

1,684.2

Corporate Overhead

(54.6)

(58.1)

(164.0)

(177.4)

Total

$ 403.6

$ 392.8

$ 1,585.6

$ 1,506.8




















Segment Profit as a Percentage of Net Sales








Tools & Storage

16.6%

16.0%

16.4%

15.3%

Security

12.8%

11.8%

11.4%

11.5%

Industrial

17.9%

15.8%

17.5%

17.1%

Segment Profit

16.1%

15.1%

15.7%

14.9%

Corporate Overhead

(1.9%)

(1.9%)

(1.5%)

(1.6%)

Total

14.2%

13.2%

14.2%

13.3%
👍️0
Drmicrocap Drmicrocap 9 years ago

Stanley Black & Decker Reports 3Q 2015 Results

.

PR Newswire
Stanley Black & Decker
October 22, 2015 6:00 AM








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NEW BRITAIN, Conn., Oct. 22, 2015 /PRNewswire/ -- Stanley Black & Decker (SWK) today announced third quarter 2015 financial results.
•3Q'15 Revenues Totaled $2.8 Billion, As Strong Organic Growth Of 6% Was More Than Offset By 8% Currency Impact
•3Q'15 Operating Margin Rate Expanded 70 Basis Points To A Post-Merger Record 14.8% Despite $70 Million Of Currency Headwinds
•3Q'15 Diluted GAAP EPS Was $1.55 Up 1% From 3Q'14 As Strong Operational Performance More Than Offset Tax And Restructuring Headwinds
•Raising 2015 Full Year GAAP EPS Guidance Range To $5.80 To $5.95, From $5.70 To $5.90, Up 8% To 11% Versus 2014

3Q'15 Key Points:
•Net sales for the period were $2.8 billion, down 2% versus prior year, as positive volume (+5%) and price (+1%) were more than offset by currency (-8%).
•Gross margin rate for the quarter was 36.3%, down slightly from the prior year rate of 36.4% as favorable volume leverage, price, productivity, cost actions and commodity deflation substantially offset unfavorable currency.
•SG&A expenses were 21.5% of sales compared to 22.3% in 3Q'14 reflecting volume leverage and cost control.
•Operating margin rate was 14.8% compared to 14.1% in 3Q'14, as actions to improve profitability and generate solid operating leverage more than offset significant unfavorable currency.
•Restructuring charges for the quarter were $14.0 million compared to a restructuring credit of $0.2 million in 3Q'14.
•Tax rate was 24.5% compared to the 3Q'14 rate of 19.1% as a result of higher U.S. vs. foreign earnings in the third quarter of 2015 compared to the prior year and the impact of statutory expirations on certain foreign tax positions in last year's third quarter.
•Average diluted shares outstanding for the quarter were 150.8 million versus 160.6 million a year ago, reflecting the cumulative impact of our recent share repurchase actions including approximately $200 million of opportunistic share repurchases during the quarter capitalizing on recent equity market declines.
•Working capital turns for the quarter were 6.4 compared to 6.5 for 3Q'14. Free cash flow for the quarter was $171 million versus $189 million for 3Q'14.

Stanley Black & Decker's Chairman and CEO, John F. Lundgren, commented, "We achieved continued share gains across much of the portfolio in the third quarter and remain on track to deliver strong organic growth for the year. This organic growth momentum, combined with a sharp focus on cost management and price realization, positions us to deliver meaningful margin expansion and 8-11% EPS growth in 2015 despite severe currency pressure and volatile economic conditions in a number of our markets.

"We continue to leverage our world-class franchises and brands to deliver substantial organic growth and margin expansion, while generating strong free cash flow and maintaining a shareholder friendly capital allocation approach. Although market conditions remain challenging in the near-term, we are confident that our agile leadership team, focus on execution and robust pipeline of innovative new products will enable us to continue our strong performance trend."



3Q'15 Segment Results




($ in M)

3Q'15 Segment Results



Sales

Profit

Profit
Rate







Tools & Storage

$1,838

$307.8

16.7%







Security

$512

$60.8

11.9%







Industrial

$479

$85.4

17.8%



•Tools & Storage net sales increased 2% versus 3Q'14 as volume (+8%) and price (+1%), more than offset unfavorable currency (-7%). Organic growth remained strong across all regions with North America +11%, Europe +7% and the emerging markets +6%. Share gains from innovative new products and brand extensions combined with a healthy underlying U.S. tool market continued to fuel growth in North America despite softness in Canada and industrial channels. Europe continued its above-market organic growth performance due to share gains from new products combined with leveraging an expanded retail footprint and solid commercial momentum in what remains a muted market. The continued roll out of our mid-price-point product offerings along with pricing actions fueled solid organic growth within the emerging markets, most notably in Latin America and portions of Asia, despite continuing pressure in Russia and China. Overall Tools & Storage segment profit rate was 16.7%, up from the 3Q'14 rate of 15.7%, as volume leverage, price, productivity, cost management and lower commodity prices more than offset significant currency pressures.
•Security net sales decreased 8% versus 3Q'14 as price (+1%) was more than offset by lower volumes (-2%) and currency (-7%). Positive momentum accelerated in Europe with organic growth of 4% led by higher installation revenues and broad-based growth throughout the region. Europe's order rates remained strong, up double-digits for the quarter, with recurring revenue attrition contained within the target range of 10-12%. Organic revenues within North America were flat as growth across the mechanical businesses was offset by lower volumes within the electronics business. Emerging markets organic revenues were lower due primarily to slowing market conditions in China. Overall Security segment profit rate was 11.9%, up 150 basis points from the 2Q'15 rate and 30 basis points lower than prior year. The sequential improvement in the rate reflects continued margin expansion within Europe and improved operating performance across the North America businesses.
•Industrial net sales decreased 7% versus 3Q'14 as price (+1%) was more than offset by lower volumes (-1%) and currency (-7%). Engineered Fastening achieved 3% organic growth as strong global automotive and electronics revenues more than offset weaker industrial volumes. As expected, Infrastructure organic revenues decreased 10% due to lower Oil & Gas volumes resulting from delayed or suspended onshore pipeline construction and reduced offshore activity, as well as lower Hydraulic Tools volume due to difficult scrap steel market conditions. Overall Industrial segment profit rate was 17.8%, up from the 3Q'14 rate of 17.7%, as favorable volume leverage from Engineered Fastening, productivity gains and cost control more than offset the impacts of currency and lower Infrastructure volumes.

President and Chief Operating Officer, James M. Loree, commented, "Our results for the quarter, in which we again generated organic growth at the high end of expectations, demonstrate that our commitment to delivering sustained, above-market organic growth is taking root. The Tools & Storage team delivered impressive organic growth of 9% overcoming tough comparables and a weaker industrial end market. Strength within Engineered Fastening's automotive and electronics markets was noteworthy as was our growth within the emerging markets where we are navigating through a volatile and challenging end market backdrop. The Company's operating margin performance for the quarter was also a highlight and another post-merger record.

"Security showed stable organic revenue with impressive strength in Europe, strong order rate trends, and sequential margin improvement – all encouraging signs that this business is on a solid improvement track. The commercial actions we have taken to drive growth in both North America and Europe are beginning to manifest themselves in order rates and backlog while efforts to improve Security's field efficiency and cost structure continue to progress."

Updated 2015 Outlook

Donald Allan Jr., Senior Vice President and CFO, commented, "We are raising the range of our 2015 EPS outlook to $5.80 to $5.95 from $5.70 to $5.90 on a GAAP basis and expect our free cash flow for 2015 to approach $1 billion reflecting the impact of strong organic growth on our working capital levels. Our revised 2015 EPS outlook reflects the impacts of a stronger operational performance combined with incremental commodity deflation which are expected to more than offset a slower growth outlook for the industrial portions of our businesses and slightly higher currency headwinds, now estimated to be closer to the high end of our prior range of $200 to $220 million.

"We continue to be encouraged by our operating results in 2015, most notably our organic growth and expanding margins despite dynamic market conditions in various geographies. We will maintain our operational agility in 2016 as we expect to face continued currency headwinds of approximately $100 million for the year. As always, we will seek to identify cost, commodity deflation and pricing opportunities to partially mitigate this impact and allow us to demonstrate reasonable earnings growth in 2016."



The Company will host a conference call with investors today, October 22, at 8:00 am ET. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.

You can also access the slides via the Stanley Black & Decker Investor Relations iPad & iPhone app from the Apple App Store by searching for "SWK Investor Relations".

The call will be accessible by telephone within the U.S. at (877) 930-8285, from outside the U.S. at +1 (253) 336-8297, and via the Internet at www.stanleyblackanddecker.com. To participate, please register on the web site at least fifteen minutes prior to the call and download and install any necessary audio software. Please use the conference identification number 49376260. A replay will also be available two hours after the call and can be accessed at (855) 859-2056 or +1 (404) 537-3406 using the passcode 49376260. The replay will also be available as a podcast within 24 hours and can be accessed on our website and via iTunes.

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.





Contact:

Greg Waybright



Vice President, Investor & Government Relations



greg.waybright@sbdinc.com



(860) 827-3833


These results reflect the Company's continuing operations. In 4Q'14, the Company classified the results of the Security segment's Spain and Italy operations as held for sale based on management's intention to sell these operations. In July 2015, the Company completed the sale of these operations. The operating results of Security Spain and Italy have been reported as discontinued operations for 3Q'15 through the date of the sale and 3Q'14. In 3Q'13, the Company classified two small businesses within the Security and Industrial segments as held for sale based on management's intention to sell these businesses; these businesses were sold during 2014. The operating results of these businesses have been reported as discontinued operations for 3Q'14. Total sales reported as discontinued operations were $3.9 million and $28.4 million for 3Q'15 and 3Q'14, respectively.

In the first quarter of 2015, the Company combined the Construction & Do-It-Yourself ("CDIY") business with certain complementary elements of the Industrial and Automotive Repair ("IAR") and Healthcare businesses (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. As a result of this change, the legacy CDIY segment was renamed Tools & Storage. The Company recast segment net sales and profit for 3Q'14 to align with this change in organizational structure. There is no impact to the consolidated financial statements of the Company as a result of this change.

Organic sales growth is defined as total sales growth less the sales of companies acquired in the past twelve months and any foreign currency impacts. Operating margin is defined as sales less cost of sales and selling, general and administrative expenses. Management uses operating margin and its percentage of net sales as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. Normalized free cash flow, as reconciled from the associated GAAP measures on page 10 for 3Q'15 and 3Q'14 is considered a meaningful pro forma metric to aid the understanding of the Company's cash flow performance aside from the material impact of M&A-related payments and charges.




CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are not historical, including but not limited to those regarding the Company's ability to: (i) achieve full year 2015 EPS of $5.80 - $5.95 on a GAAP basis (including $50 million or $0.25 EPS in restructuring charges); (ii) generate free cash flow approaching $1.0 billion for 2015; (iii) achieve meaningful margin expansion and 8-11% EPS growth in 2015; and (iv) maintain its operational agility and demonstrate reasonable earnings growth in 2016 (collectively, the "Results"); are "forward looking statements" and subject to risk and uncertainty.

The Company's ability to deliver the Results as described above is based on current expectations and involves inherent risks and uncertainties, including factors listed below and other factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations. In addition to the risks, uncertainties and other factors discussed in this press release, the risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied in the forward looking statements include, without limitation, those set forth under Item 1A Risk Factors of the Company's Annual Report on Form 10-K and any material changes thereto set forth in any subsequent Quarterly Reports on Form 10-Q, or those contained in the Company's other filings with the Securities and Exchange Commission, and those set forth below.

The Company's ability to deliver the Results is dependent, or based, upon: (i) the Company's ability to deliver sufficient working capital turns expansion to achieve free cash flow approaching $1 billion for 2015; (ii) the Company's ability to deliver organic growth of approximately 6% in 2015; (iii) the Company's ability to successfully execute upon indirect cost actions and to benefit from pricing opportunities and commodity deflation; (iv) foreign exchange headwinds being at the higher end of the $200-$220 million range at the end of 2015 and approximately $100 million in 2016; (v) the Company's ability to achieve a tax rate relatively consistent with the 2014 tax rate; (vi) the Company's ability to limit restructuring charges to approximately $50 million in 2015: (vii) successful integration of existing businesses and formation of new business platforms; (viii) the continued acceptance of technologies used in the Company's products and services; (ix) the Company's ability to manage existing Sonitrol franchisee and Mac Tools relationships; (x) the Company's ability to minimize costs associated with any sale or discontinuance of a business or product line, including any severance, restructuring, legal or other costs; (xi) the proceeds realized with respect to any business or product line disposals; (xii) the extent of any asset impairments with respect to any businesses or product lines that are sold or discontinued; (xiii) the success of the Company's efforts to manage freight costs, steel and other commodity costs as well as capital expenditures; (xiv) the Company's ability to sustain or increase prices in order to, among other things, offset or mitigate the impact of steel, freight, energy, non-ferrous commodity and other commodity costs and any inflation increases and/or currency impacts; (xv) the Company's ability to generate free cash flow and maintain a strong debt to capital ratio; (xvi) the Company's ability to identify and effectively execute productivity improvements and cost reductions, while minimizing any associated restructuring charges; (xvii) the Company's ability to obtain favorable settlement of tax audits; (xviii) the ability of the Company to generate earnings sufficient to realize future income tax benefits during periods when temporary differences become deductible, including realizing tax credit carry forward amounts within the allowable carry forward periods; (xix) the continued ability of the Company to access credit markets under satisfactory terms; (xx) the Company's ability to negotiate satisfactory price and payment terms under which the Company buys and sells goods, services, materials and products; (xxi) the Company's ability to successfully develop, market and achieve sales from new products and services; and (xxii) the availability of cash to repurchase shares when conditions are right.

The Company's ability to deliver the Results is also dependent upon: (i) the success of the Company's marketing and sales efforts, including the ability to develop and market new and innovative products at the right price points in both existing and new markets; (ii) the ability of the Company to maintain or improve production rates in the Company's manufacturing facilities, respond to significant changes in product demand and fulfill demand for new and existing products; (iii) the Company's ability to continue improvements in working capital through effective management of accounts receivable and inventory levels; (iv) the ability to continue successfully managing and defending claims and litigation; (v) the success of the Company's efforts to mitigate any adverse earnings impact resulting from increases generated by, for example, increases in the cost of energy or significant Chinese Renminbi, Canadian Dollar, Euro, British Pound, Brazilian Real or other currency fluctuations; (vi) the geographic distribution of the Company's earnings; (vii) the commitment to and success of the Stanley Fulfillment System; and (viii) successful implementation with expected results of cost reduction programs.

The Company's ability to achieve the Results will also be affected by external factors. These external factors include: challenging global geopolitical and macroeconomic environment; the economic environment of emerging markets, particularly Latin America, Russia, China and Turkey; pricing pressure and other changes within competitive markets; the continued consolidation of customers particularly in consumer channels; inventory management pressures on the Company's customers; the impact the tightened credit markets may have on the Company or its customers or suppliers; the extent to which the Company has to write off accounts receivable or assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; increasing competition; changes in laws, regulations and policies that affect the Company, including, but not limited to trade, monetary, tax and fiscal policies and laws; the timing and extent of any inflation or deflation; the impact of poor weather conditions on sales; currency exchange fluctuations; the impact of dollar/foreign currency exchange and interest rates on the competitiveness of products and the Company's debt program; the strength of the U.S. and European economies; the extent to which world-wide markets associated with homebuilding and remodeling stabilize and rebound; the impact of events that cause or may cause disruption in the Company's supply, manufacturing, distribution and sales networks such as war, terrorist activities, and political unrest; and recessionary or expansive trends in the economies of the world in which the Company operates. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.





STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited, Millions of Dollars Except Per Share Amounts)






























THIRD QUARTER


YEAR TO DATE






2015


2014


2015


2014















NET SALES


$ 2,829.5


$ 2,878.9


$ 8,326.4


$ 8,356.1















COSTS AND EXPENSES












Cost of sales


1,802.5


1,832.3


5,268.6


5,304.5




Gross margin


1,027.0


1,046.6


3,057.8


3,051.6




% of Net Sales


36.3%


36.4%


36.7%


36.5%
















Selling, general and administrative


608.3


641.1


1,875.8


1,937.6




% of Net Sales


21.5%


22.3%


22.5%


23.2%
















Operating margin


418.7


405.5


1,182.0


1,114.0




% of Net Sales


14.8%


14.1%


14.2%


13.3%
















Other - net


54.0


60.9


168.2


179.1




Restructuring charges (credits)


14.0


(0.2)


43.9


(5.6)




Income from operations


350.7


344.8


969.9


940.5
















Interest - net


41.6


40.4


125.5


121.4















EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

309.1


304.4


844.4


819.1




Income taxes on continuing operations


75.7


58.3


209.5


180.4



NET EARNINGS FROM CONTINUING OPERATIONS

233.4


246.1


634.9


638.7
















Less: net (loss) earnings attributable to non-controlling interests

(0.7)


(0.3)


(1.7)


0.8















NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE











TO COMMON SHAREOWNERS


234.1


246.4


636.6


637.9















NET LOSS FROM DISCONTINUED OPERATIONS

(5.4)


(9.7)


(18.4)


(22.8)















NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS

$ 228.7


$ 236.7


$ 618.2


$ 615.1



























BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK











Continuing operations


$ 1.60


$ 1.57


$ 4.28


$ 4.08




Discontinued operations


(0.04)


(0.06)


(0.12)


(0.15)




Total basic earnings per share of common stock

$ 1.57


$ 1.51


$ 4.15


$ 3.94















DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK











Continuing operations


$ 1.55


$ 1.53


$ 4.15


$ 3.99




Discontinued operations


(0.04)


(0.06)


(0.12)


(0.14)




Total diluted earnings per share of common stock

$ 1.52


$ 1.47


$ 4.03


$ 3.85















DIVIDENDS PER SHARE


$ 0.55


$ 0.52


$ 1.59


$ 1.52















AVERAGE SHARES OUTSTANDING (in thousands)











Basic


145,911


156,628


148,796


156,278




Diluted


150,781


160,582


153,405


159,755








STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED BALANCE SHEETS


(Unaudited, Millions of Dollars)












October 3,


January 3,





2015


2015


ASSETS







Cash and cash equivalents


$ 293.3


$ 496.6



Accounts and notes receivable, net

1,690.9


1,396.7



Inventories, net


1,867.0


1,562.7



Assets held for sale


-


29.5



Other current assets


422.1


463.3



Total current assets


4,273.3


3,948.8



Property, plant and equipment, net

1,407.6


1,454.1



Goodwill and other intangibles, net

9,739.6


10,027.2



Other assets


450.4


419.0



Total assets


$ 15,870.9


$ 15,849.1
















LIABILITIES AND SHAREOWNERS' EQUITY






Short-term borrowings


$ 457.0


$ 7.5



Accounts payable


1,718.9


1,579.2



Accrued expenses


1,246.4


1,221.9



Liabilities held for sale


-


23.4



Total current liabilities

3,422.3


2,832.0



Long-term debt


3,847.3


3,839.8



Other long-term liabilities


2,880.7


2,665.4



Stanley Black & Decker, Inc. shareowners' equity

5,639.0


6,429.1



Non-controlling interests' equity

81.6


82.8



Total liabilities and equity

$ 15,870.9


$ 15,849.1








STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


SUMMARY OF CASH FLOW ACTIVITY


(Unaudited, Millions of Dollars)






















THIRD QUARTER


YEAR TO DATE






















2015


2014


2015


2014



OPERATING ACTIVITIES













Net earnings from continuing operations



$ 233.4


$ 246.1


$ 634.9


$ 638.7




Net loss from discontinued operations



(5.4)


(9.7)


(18.4)


(22.8)




Depreciation and amortization



103.9


112.6


308.4


337.4




Changes in working capital1



(173.1)


(168.6)


(601.5)


(443.0)




Other




80.2


68.7


30.7


24.0




Net cash provided by operating activities



239.0


249.1


354.1


534.3































INVESTING AND FINANCING ACTIVITIES













Capital and software expenditures



(68.5)


(60.2)


(180.1)


(179.4)




Proceeds from issuances of common stock



9.3


23.4


84.0


51.0




Net short-term borrowings (repayments)



32.1


(48.8)


450.8


33.8




Net investment hedge settlements



48.3


(29.2)


112.2


(65.0)




Cash dividends on common stock



(79.7)


(81.4)


(239.2)


(240.5)




Purchases of common stock for treasury



(192.1)


(1.3)


(640.1)


(20.7)




Effect of exchange rate changes on cash



(38.7)


(66.3)


(80.8)


(63.1)




Other




(48.3)


(14.2)


(64.2)


(59.8)




Net cash used in investing and financing activities



(337.6)


(278.0)


(557.4)


(543.7)

















Decrease in Cash and Cash Equivalents



(98.6)


(28.9)


(203.3)


(9.4)

















Cash and Cash Equivalents, Beginning of Period



391.9


515.7


496.6


496.2

















Cash and Cash Equivalents, End of Period



$ 293.3


$ 486.8


$ 293.3


$ 486.8































Free Cash Flow Computation2












Operating cash inflow



$ 239.0


$ 249.1


$ 354.1


$ 534.3



Less: capital and software expenditures



(68.5)


(60.2)


(180.1)


(179.4)



Free cash inflow (before dividends)



$ 170.5


$ 188.9


$ 174.0


$ 354.9



Merger & Acquisition-related charges and payments4



20.4


29.5


68.7


116.1



Free cash inflow, normalized (before dividends)3



$ 190.9


$ 218.4


$ 242.7


$ 471.0
















1

Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.
















2,3

Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. Normalized free cash flow, as reconciled above, is considered a meaningful pro forma metric to aid the understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities.
















4

Merger & Acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.








STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


BUSINESS SEGMENT INFORMATION


(Unaudited, Millions of Dollars)
































THIRD QUARTER


YEAR TO DATE







2015


2014


2015


2014




NET SALES













Tools & Storage


$ 1,838.2


$ 1,806.4


$ 5,309.8


$ 5,153.0





Security


512.0


554.8


1,554.9


1,671.3





Industrial


479.3


517.7


1,461.7


1,531.8





Total


$ 2,829.5


$ 2,878.9


$ 8,326.4


$ 8,356.1






























SEGMENT PROFIT













Tools & Storage


$ 307.8


$ 284.1


$ 866.2


$ 773.8





Security


60.8


67.6


170.8


189.8





Industrial


85.4


91.5


254.4


269.7





Segment Profit


454.0


443.2


1,291.4


1,233.3





Corporate Overhead


(35.3)


(37.7)


(109.4)


(119.3)





Total


$ 418.7


$ 405.5


$ 1,182.0


$ 1,114.0






























Segment Profit as a Percentage of Net Sales












Tools & Storage


16.7%


15.7%


16.3%


15.0%





Security


11.9%


12.2%


11.0%


11.4%





Industrial


17.8%


17.7%


17.4%


17.6%





Segment Profit


16.0%


15.4%


15.5%


14.8%





Corporate Overhead


(1.2%)


(1.3%)


(1.3%)


(1.4%)





Total


14.8%


14.1%


14.2%


13.3%




👍️0
Drmicrocap Drmicrocap 9 years ago

Stanley Black & Decker Reports 2Q 2015 Results

.

PR Newswire
Stanley Black & Decker
July 30, 2015 6:00 AM








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NEW BRITAIN, Conn., July 30, 2015 /PRNewswire/ -- Stanley Black & Decker (SWK) today announced second quarter 2015 financial results.
•2Q'15 Revenues Totaled $2.9 Billion, Flat To Prior Year, As Robust Organic Growth Of 8% Was Offset By An 8% Currency Impact
•2Q'15 Operating Margin Rate Expanded 70 Basis Points To A Post-Merger Record 14.4% Despite $50 Million Of Currency Headwinds
•2Q'15 Diluted GAAP EPS Was $1.54 Up 11% From 2Q'14 On Strong Operational Performance
•Raising 2015 Full Year GAAP EPS Guidance Range To $5.70 To $5.90 From $5.65 To $5.85, Up 6% To 10% Versus 2014, Despite $1.00 To $1.10 Per Share Of Foreign Currency EPS Pressure

2Q'15 Key Points:
•Net sales for the period were $2.9 billion, flat to prior year, as positive volume (+7%) and price (+1%) were offset by currency (-8%).

•Gross margin rate for the quarter was 36.9%, up 20 basis points from the prior year rate of 36.7% as a result of favorable volume leverage, price, productivity and cost actions which more than offset unfavorable currency.

•SG&A expenses were 22.5% of sales compared to 22.9% in 2Q'14 reflecting volume leverage and cost control.

•Operating margin rate was 14.4% up 70 basis points from 2Q'14, reflecting actions to improve profitability and generate solid operating leverage which more than offset unfavorable currency.

•Restructuring charges for the quarter were $5.0 million compared to a restructuring credit of $1.7 million in 2Q'14.

•Tax rate was 25.0% equal to the 2Q'14 rate.

•Average diluted shares outstanding for the quarter were 152.7 million versus 159.7 million a year ago, reflecting the cumulative impact of our recent share repurchase program, including the repurchase of approximately $100 million of shares during the quarter.

•Working capital turns for the quarter were 7.0, up 0.2 turns from 2Q'14. Free cash flow for the quarter was $247 million versus $376 million for 2Q'14 reflecting an increased level of working capital to support higher organic growth.

Stanley Black & Decker's Chairman and CEO, John F. Lundgren, commented, "Our results from the second quarter and first half of 2015, combined with our recently increased dividend, reflect the continued successful execution of the strategy we communicated at our Investor Day in May: leveraging our world-class franchises and brands to deliver substantial organic growth and margin expansion, while generating strong free cash flow and maintaining a shareholder friendly capital allocation program. Organic growth and operating leverage were strong across most of the business, innovation is robust, and the organization remains agile, giving us confidence in our ability to navigate the uncertain currency and macro conditions we expect to continue to face in the back half of this year, and positioning us to meet our updated full year financial commitments."







2Q'15 Segment Results














($ in M)

2Q'15 Segment Results




Sales

Profit

Profit
Rate









Tools & Storage

$1,840

$301.6

16.4%









Security

$533

$55.2

10.4%









Industrial

$494

$94.3

19.1%




•Tools & Storage net sales increased 4% versus 2Q'14 as volume (+10%) and price (+1%), were partially offset by currency (-7%). Organic growth was strong across the board with North America, Europe and emerging markets up 14%, 7% and 5%, respectively. North America, which posted its fourth consecutive quarter of double-digit organic growth, continued to benefit from healthy underlying tool demand, share gains from new products and brand extensions, along with a favorable outdoor season. Europe maintained its trend of strong organic growth as new products, an expanded retail footprint, and solid commercial momentum continued to generate share gains in many markets amid a challenged growth environment. Emerging markets organic growth resulted from mid-price-point product launches and pricing actions, most notably in Latin America, which offset steep declines in Russia and slow market conditions in China. Overall Tools & Storage segment profit rate was a post-merger record 16.4%, up from the 2Q'14 rate of 15.6%, as volume leverage, price, productivity and cost management more than offset currency pressures.

•Security net sales decreased 7% versus 2Q'14 as organic growth of 1%, driven by slightly positive volume and price, was significantly impacted by currency (-8%). Organic growth within North America & emerging markets ("NA & EM") was flat as organic growth across the NA businesses was offset by declines in EM due to a slow China market. Europe's organic growth accelerated in the quarter (+3%), as higher installation revenues led to the region's third consecutive quarter of flat or positive organic growth, with growth in all major countries. Order rates in Europe were also strong, up double digits for the quarter, with attrition remaining within the target range of 10-12%. Overall Security segment profit rate was 10.4%, 170 basis points below 2Q'14. The year-over-year decrease in the rate relates primarily to the impact of project mix within the NA electronics business and sluggish EM volumes which more than offset improved operating performance within Europe and the NA mechanical business.

In addition, the Company completed the sale of Security Europe's Spain and Italy operations in July. The results of these operations have been reported as discontinued operations beginning in 4Q'14.

•Industrial net sales decreased 4% versus 2Q'14 as volume (+3%) and price (+1%) were more than offset by currency (-8%). Engineered Fastening achieved 4% organic growth driven by strong global automotive and electronics revenues, which more than offset weaker North American industrial volumes. Infrastructure organic revenues increased 3% as higher Oil & Gas volume, which benefited from a large international equipment sale during the quarter, more than offset lower Hydraulic Tools volume due to difficult market dynamics related to scrap steel. Overall Industrial segment profit rate was 19.1%, up 140 basis points from the 2Q'14 rate of 17.7%, as favorable volume leverage from Engineered Fastening and Oil & Gas, productivity gains and cost control more than offset the impact from currency and lower Hydraulic Tools volume.

President and Chief Operating Officer, James M. Loree, commented, "Our second quarter represented the fourth successive quarter of organic growth at or above 6% -- a sign that our efforts to build a culture geared towards organic growth are gaining traction. This impressive growth was once again led by our Tools & Storage platform, which has averaged 10% organic growth over this time period, while emerging markets in total despite weakness in China and Engineered Fastening also showed strength.

"Security's top-line performance was solid and we are encouraged by order rate trends, which reflect the impact of commercial actions aimed at driving growth in both North America and Europe. We were particularly pleased with the organic growth and operating margin results in Europe, which continues to perform to expectations, as well as within the North America mechanical access business. Security's overall margin performance fell short of our expectations for the quarter, however, as we have previously communicated, the multi-year growth and margin rate recovery trajectory of this business will not necessarily be linear. We still believe Security will achieve its growth and profitability objectives and remain committed to completing our assessment of its strategic fit by the second half of 2016. "

Updated 2015 Outlook

Donald Allan Jr., Senior Vice President and CFO, commented, "We are raising the range of our 2015 EPS outlook to $5.70 to $5.90 from $5.65 to $5.85 on a GAAP basis. We are maintaining our free cash flow outlook of at least $1 billion, however, we are closely monitoring the relatively higher working capital levels experienced in the first half of the year to ensure our working capital is adequate to service the higher organic growth expectations, which could modestly pressure free cash flow. Our current 2015 EPS outlook reflects the strong first half performance and improved full-year organic outlook within Tools & Storage and to a lesser extent our Engineered Fastening business, combined with additional indirect cost actions which, in the aggregate, are expected to more than offset Security's slower improvement. It is also important to note that since the beginning of the fourth quarter of 2014 we have reduced our share count by the equivalent of ~$1 billion of shares utilizing a combination of cash as well as equity derivatives, achieving our share repurchase plan announced in late 2013.

"We are encouraged by our overall first half performance despite difficult currency and market conditions and remain confident that 2015 will be another step forward in achieving our 2018 financial objectives that we communicated in May."

The Company will host a conference call with investors today, July 30, at 8:00 am ET. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.

You can also access the slides via the Stanley Black & Decker Investor Relations iPad & iPhone app from the Apple App Store by searching for "SWK Investor Relations".

The call will be accessible by telephone within the U.S. at (877) 930-8285, from outside the U.S. at +1 (253) 336-8297, and via the Internet at www.stanleyblackanddecker.com. To participate, please register on the web site at least fifteen minutes prior to the call and download and install any necessary audio software. Please use the conference identification number 77039075. A replay will also be available two hours after the call and can be accessed at (855) 859-2056 or +1 (404) 537-3406 using the passcode 77039075. The replay will also be available as a podcast within 24 hours and can be accessed on our website and via iTunes.

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.






Contact:

Greg Waybright



Vice President, Investor & Government Relations



greg.waybright@sbdinc.com



(860) 827-3833





These results reflect the Company's continuing operations. In 4Q'14, the Company classified the results of the Security segment's Spain and Italy operations as held for sale based on management's intention to sell these operations. In July 2015, the Company completed the sale of these operations. The operating results of Security Spain and Italy have been reported as discontinued operations for 2Q'15 and 2Q'14. In 3Q'13, the Company classified two small businesses within the Security and Industrial segments as held for sale based on management's intention to sell these businesses; these businesses were sold during 2014. The operating results of these businesses have been reported as discontinued operations for 2Q'14. Total sales reported as discontinued operations were $17.6 million and $33.4 million for 2Q'15 and 2Q'14, respectively.

In the first quarter of 2015, the Company combined the Construction & Do-It-Yourself ("CDIY") business with certain complementary elements of the Industrial and Automotive Repair ("IAR") and Healthcare businesses (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. As a result of this change, the legacy CDIY segment was renamed Tools & Storage. The Company recast segment net sales and profit for 2Q'14 to align with this change in organizational structure. There is no impact to the consolidated financial statements of the Company as a result of this change.

Organic sales growth is defined as total sales growth less the sales of companies acquired in the past twelve months and any foreign currency impacts. Operating margin is defined as sales less cost of sales and selling, general and administrative expenses. Management uses operating margin and its percentage of net sales as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. Normalized free cash flow, as reconciled from the associated GAAP measures on page 10 for 2Q'15 and 2Q'14 is considered a meaningful pro forma metric to aid the understanding of the Company's cash flow performance aside from the material impact of M&A-related payments and charges.





CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995




Statements in this press release that are not historical, including but not limited to those regarding the Company's ability to: (i) achieve full year 2015 EPS of $5.70 - $5.90 on a GAAP basis (including $50 million or $0.25 EPS in restructuring charges); (ii) generate free cash flow of at least $1.0 billion for 2015; (iii) maintain Security margin rates relatively flat to the prior year during 2015; and (iv) achieve its 2018 financial objectives as communicated at the Investor Day conference in May (collectively, the "Results"); are "forward looking statements" and subject to risk and uncertainty.




The Company's ability to deliver the Results as described above is based on current expectations and involves inherent risks and uncertainties, including factors listed below and other factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations. In addition to the risks, uncertainties and other factors discussed in this press release, the risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied in the forward looking statements include, without limitation, those set forth under Item 1A Risk Factors of the Company's Annual Report on Form 10-K and any material changes thereto set forth in any subsequent Quarterly Reports on Form 10-Q, or those contained in the Company's other filings with the Securities and Exchange Commission, and those set forth below.




The Company's ability to deliver the Results is dependent, or based, upon: (i) the Company's ability to deliver sufficient working capital turns expansion to achieve at least $1 billion of free cash flow for 2015; (ii) the Company's ability to deliver organic growth of approximately 6% (iii) the Company's ability to successfully execute upon indirect cost actions and to benefit from pricing and cost deflation; (iv) the Company's ability to sufficiently lower its average share count in 2015; (v) foreign exchange headwinds being approximately $200-$220 million in 2015; (vi) the Company's ability to achieve a tax rate relatively consistent with the 2014 tax rate; (vii) the Company's ability to limit restructuring charges to approximately $50 million in 2015: (viii) successful integration of acquisitions completed during the year, as well as integration of existing businesses and formation of new business platforms; (ix) the continued acceptance of technologies used in the Company's products and services; (x) the Company's ability to manage existing Sonitrol franchisee and Mac Tools relationships; (xi) the Company's ability to minimize costs associated with any sale or discontinuance of a business or product line, including any severance, restructuring, legal or other costs; (xii) the proceeds realized with respect to any business or product line disposals; (xiii) the extent of any asset impairments with respect to any businesses or product lines that are sold or discontinued; (xiv) the success of the Company's efforts to manage freight costs, steel and other commodity costs as well as capital expenditures; (xv) the Company's ability to sustain or increase prices in order to, among other things, offset or mitigate the impact of steel, freight, energy, non-ferrous commodity and other commodity costs and any inflation increases and/or currency impacts; (xvi) the Company's ability to generate free cash flow and maintain a strong debt to capital ratio; (xvii) the Company's ability to identify and effectively execute productivity improvements and cost reductions, while minimizing any associated restructuring charges; (xviii) the Company's ability to obtain favorable settlement of tax audits; (xix) the ability of the Company to generate earnings sufficient to realize future income tax benefits during periods when temporary differences become deductible, including realizing tax credit carry forward amounts within the allowable carry forward periods; (xx) the continued ability of the Company to access credit markets under satisfactory terms; (xxi) the Company's ability to negotiate satisfactory price and payment terms under which the Company buys and sells goods, services, materials and products; (xxii) the Company's ability to successfully develop, market and achieve sales from new products and services; and (xxiii) the availability of cash to repurchase shares when conditions are right.




The Company's ability to deliver the Results is also dependent upon: (i) the success of the Company's marketing and sales efforts, including the ability to develop and market new and innovative products at the right price points in both existing and new markets; (ii) the ability of the Company to maintain or improve production rates in the Company's manufacturing facilities, respond to significant changes in product demand and fulfill demand for new and existing products; (iii) the Company's ability to continue improvements in working capital through effective management of accounts receivable and inventory levels; (iv) the ability to continue successfully managing and defending claims and litigation; (v) the success of the Company's efforts to mitigate any adverse earnings impact resulting from increases generated by, for example, increases in the cost of energy or significant Euro, Canadian Dollar, Chinese Renminbi or other currency fluctuations; (vi) the geographic distribution of the Company's earnings; (vii) the commitment to and success of the Stanley Fulfillment System; and (viii) successful implementation with expected results of cost reduction programs.




The Company's ability to achieve the Results will also be affected by external factors. These external factors include: challenging global geopolitical and macroeconomic environment; the economic environment of emerging markets, particularly Latin America, Russia and Turkey; pricing pressure and other changes within competitive markets; the continued consolidation of customers particularly in consumer channels; inventory management pressures on the Company's customers; the impact the tightened credit markets may have on the Company or its customers or suppliers; the extent to which the Company has to write off accounts receivable or assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; increasing competition; changes in laws, regulations and policies that affect the Company, including, but not limited to trade, monetary, tax and fiscal policies and laws; the timing and extent of any inflation or deflation; the impact of poor weather conditions on sales; currency exchange fluctuations; the impact of dollar/foreign currency exchange and interest rates on the competitiveness of products and the Company's debt program; the strength of the U.S. and European economies; the extent to which world-wide markets associated with homebuilding and remodeling stabilize and rebound; the impact of events that cause or may cause disruption in the Company's supply, manufacturing, distribution and sales networks such as war, terrorist activities, and political unrest; and recessionary or expansive trends in the economies of the world in which the Company operates. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.








STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited, Millions of Dollars Except Per Share Amounts)






























SECOND QUARTER


YEAR TO DATE






2015


2014


2015


2014















NET SALES


$ 2,866.9


$ 2,860.1


$ 5,496.9


$ 5,477.2















COSTS AND EXPENSES












Cost of sales


1,809.7


1,811.5


3,466.1


3,472.2




Gross margin


1,057.2


1,048.6


2,030.8


2,005.0




% of Net Sales


36.9%


36.7%


36.9%


36.6%
















Selling, general and administrative


644.5


655.9


1,267.5


1,296.5




% of Net Sales


22.5%


22.9%


23.1%


23.7%
















Operating margin


412.7


392.7


763.3


708.5




% of Net Sales


14.4%


13.7%


13.9%


12.9%
















Other - net


50.5


57.3


114.2


118.2




Restructuring charges (credits)


5.0


(1.7)


29.9


(5.4)




Income from operations


357.2


337.1


619.2


595.7
















Interest - net


43.2


40.3


83.9


81.0















EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

314.0


296.8


535.3


514.7




Income tax expense on continuing operations

78.5


74.1


133.8


122.1



NET EARNINGS FROM CONTINUING OPERATIONS

235.5


222.7


401.5


392.6
















Less: net (loss) earnings attributable to non-controlling interests

(0.2)


0.9


(1.0)


1.1















NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE











TO COMMON SHAREOWNERS


235.7


221.8


402.5


391.5















NET LOSS FROM DISCONTINUED OPERATIONS

(8.5)


(5.3)


(13.0)


(13.1)















NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS

$ 227.2


$ 216.5


$ 389.5


$ 378.4



























BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK











Continuing operations


$ 1.59


$ 1.42


$ 2.68


$ 2.51




Discontinued operations


(0.06)


(0.03)


(0.09)


(0.08)




Total basic earnings per share of common stock

$ 1.53


$ 1.38


$ 2.59


$ 2.42















DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK











Continuing operations


$ 1.54


$ 1.39


$ 2.60


$ 2.46




Discontinued operations


(0.06)


(0.03)


(0.08)


(0.08)




Total diluted earnings per share of common stock

$ 1.49


$ 1.36


$ 2.51


$ 2.37















DIVIDENDS PER SHARE


$ 0.52


$ 0.50


$ 1.04


$ 1.00















AVERAGE SHARES OUTSTANDING (in thousands)











Basic


148,059


156,316


150,339


156,097




Diluted


152,663


159,666


154,881


159,354






























STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED BALANCE SHEETS


(Unaudited, Millions of Dollars)












July 4,


January 3,





2015


2015


ASSETS







Cash and cash equivalents


$ 391.9


$ 496.6



Accounts and notes receivable, net

1,645.9


1,396.7



Inventories, net


1,839.6


1,562.7



Assets held for sale


19.1


29.5



Other current assets


448.3


463.3



Total current assets


4,344.8


3,948.8



Property, plant and equipment, net

1,419.2


1,454.1



Goodwill and other intangibles, net

9,798.7


10,027.2



Other assets


436.1


419.0



Total assets


$ 15,998.8


$ 15,849.1
















LIABILITIES AND SHAREOWNERS' EQUITY






Short-term borrowings


$ 440.5


$ 7.5



Accounts payable


1,764.6


1,579.2



Accrued expenses


1,158.9


1,221.9



Liabilities held for sale


21.0


23.4



Total current liabilities

3,385.0


2,832.0



Long-term debt


3,823.2


3,839.8



Other long-term liabilities


2,924.1


2,665.4



Stanley Black & Decker, Inc. shareowners' equity

5,784.2


6,429.1



Non-controlling interests' equity

82.3


82.8



Total liabilities and equity

$ 15,998.8


$ 15,849.1













STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


SUMMARY OF CASH FLOW ACTIVITY


(Unaudited, Millions of Dollars)






















SECOND QUARTER


YEAR TO DATE






















2015


2014


2015


2014



OPERATING ACTIVITIES













Net earnings from continuing operations



$ 235.5


$ 222.7


$ 401.5


$ 392.6




Net loss from discontinued operations



(8.5)


(5.3)


(13.0)


(13.1)




Depreciation and amortization



102.0


114.4


204.5


224.8




Changes in working capital1



(50.5)


55.9


(428.4)


(274.4)




Other




34.1


49.5


(49.5)


(44.7)




Net cash provided by operating activities



312.6


437.2


115.1


285.2































INVESTING AND FINANCING ACTIVITIES













Capital and software expenditures



(65.7)


(61.4)


(111.6)


(119.2)




Proceeds from issuances of common stock



31.7


14.4


74.7


27.6




Net short-term (repayments) borrowings



(180.2)


(199.7)


418.7


82.6




Net investment hedge settlements



33.5


(29.5)


63.9


(35.8)




Cash dividends on common stock



(76.8)


(78.4)


(159.5)


(159.1)




Purchases of common stock for treasury



(100.0)


-


(448.0)


(19.4)




Effect of exchange rate changes on cash



3.5


10.3


(42.1)


3.2




Other




(2.2)


(9.8)


(15.9)


(45.6)




Net cash used in investing and financing activities



(356.2)


(354.1)


(219.8)


(265.7)

















(Decrease) Increase in Cash and Cash Equivalents



(43.6)


83.1


(104.7)


19.5

















Cash and Cash Equivalents, Beginning of Period



435.5


432.6


496.6


496.2

















Cash and Cash Equivalents, End of Period



$ 391.9


$ 515.7


$ 391.9


$ 515.7































Free Cash Flow Computation2












Operating cash inflow



$ 312.6


$ 437.2


$ 115.1


$ 285.2



Less: capital and software expenditures



(65.7)


(61.4)


(111.6)


(119.2)



Free cash inflow (before dividends)



$ 246.9


$ 375.8


$ 3.5


$ 166.0



Merger & Acquisition-related charges and payments4



28.5


34.8


48.3


86.6



Free cash inflow, normalized (before dividends)3



$ 275.4


$ 410.6


$ 51.8


$ 252.6
















1

Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.
















2,3

Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. Normalized free cash flow, as reconciled above, is considered a meaningful pro forma metric to aid the understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities.
















4

Merger & Acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.








STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


BUSINESS SEGMENT INFORMATION


(Unaudited, Millions of Dollars)
































SECOND QUARTER


YEAR TO DATE







2015


2014


2015


2014




NET SALES













Tools & Storage


$ 1,839.5


$ 1,771.8


$ 3,471.6


$ 3,346.6





Security


533.3


571.6


1,042.9


1,116.5





Industrial


494.1


516.7


982.4


1,014.1





Total


$ 2,866.9


$ 2,860.1


$ 5,496.9


$ 5,477.2






























SEGMENT PROFIT













Tools & Storage


$ 301.6


$ 276.9


$ 558.4


$ 489.7





Security


55.2


69.4


110.0


122.2





Industrial


94.3


91.5


169.0


178.2





Segment Profit


451.1


437.8


837.4


790.1





Corporate Overhead


(38.4)


(45.1)


(74.1)


(81.6)





Total


$ 412.7


$ 392.7


$ 763.3


$ 708.5






























Segment Profit as a Percentage of Net Sales












Tools & Storage


16.4%


15.6%


16.1%


14.6%





Security


10.4%


12.1%


10.5%


10.9%





Industrial


19.1%


17.7%


17.2%


17.6%





Segment Profit


15.7%


15.3%


15.2%


14.4%





Corporate Overhead


(1.3%)


(1.6%)


(1.3%)


(1.5%)





Total


14.4%


13.7%


13.9%


12.9%







👍️0
V63 V63 9 years ago
If all goes well this should show some growth at the end of the year! Christmas time then 2016 spring time fixer uppers for homes should drive some sales up as well. we'll see.
👍️0
Drmicrocap Drmicrocap 9 years ago
Stanley Black & Decker Reports 1Q 2015 Results
PR Newswire
Stanley Black & Decker
April 23, 2015 6:00 AM


NEW BRITAIN, Conn., April 23, 2015 /PRNewswire/ -- Stanley Black & Decker (SWK) today announced first quarter 2015 financial results.
•1Q'15 Revenues Increased 1% To $2.6 Billion; Robust Organic Growth Of 8% Mostly Offset By 7% Currency Impact
•1Q'15 Operating Margin Expanded 120 Basis Points To 13.3% Despite $50 Million Of Currency Headwinds
•1Q'15 Diluted GAAP EPS Was $1.07 Consistent With 1Q'14 As Strong Operational Performance Was Offset By Higher Planned Restructuring Charges And A Higher Tax Rate
•Executed Actions That Reduced Share Count By Approximately 8 Million Shares During The Quarter
•Reiterating 2015 Full Year GAAP EPS Guidance Range Of $5.65 To $5.85, Up 5% To 9%, Despite $60 To $70 Million ($0.30 To $0.35 Per Share) In New, Incremental Foreign Currency OM Pressure
•Year Over Year Currency-Related EPS Headwinds Included In Full Year Guidance Now Total $1.00 To $1.10 (19% To 20% Of Prior Year EPS)
•2015 Free Cash Flow Still Expected To Be At Least $1.0 Billion

1Q'15 Key Points:
•Net sales for the period were $2.6 billion, up 1% versus prior year, as positive volume (+7%) and price (+1%) were substantially offset by currency (-7%).


•Gross margin rate for the quarter was 37.0%, up 50 basis points from the prior year rate of 36.5% as a result of favorable volume, price, productivity and cost actions which more than offset unfavorable currency.


•SG&A expenses were 23.7% of sales compared to 24.5% in 1Q'14 reflecting volume leverage and cost control.


•Operating margin rate was 13.3% up 120 basis points from 1Q'14, reflecting actions to improve profitability and generate operating leverage which more than offset unfavorable currency.


•Restructuring charges for the quarter were $24.9 million compared to a restructuring credit of $3.7 million in 1Q'14.


•Tax rate was 25.0%, slightly higher than anticipated and 300 basis points higher than last year's rate due to the timing of certain tax benefits and earnings mix.


•Average diluted shares outstanding for the quarter were 156.5 million versus 160.0 million in 4Q'14 and 159.0 million a year ago, reflecting the impact of our share repurchase program.


•Working capital turns for the quarter were 6.6, up 0.6 turns from 1Q'14. Free cash flow for the quarter, in line with normal seasonality, was an outflow of $243 million versus an outflow of $210 million for 1Q'14.

Stanley Black & Decker's Chairman and CEO, John F. Lundgren, commented, "As we entered 2015, our annual objectives remained focused on delivering solid organic growth, meaningful operating leverage and strong free cash flow coupled with capital allocation actions designed to drive sustainable value for shareholders. We posted strong organic growth and operating leverage in our Tools & Storage and Engineered Fastening businesses in the face of a challenging currency environment, and continued to execute on our plan to improve operating performance in Security. Our long-term strategy and financial objectives remain intact, and we are well-positioned to meet our commitments for the balance of the year despite intensified currency headwinds and a continued volatile macro environment."



1Q'15 Segment Results






($ in M)

1Q'15 Segment Results




Sales

Profit

Profit
Rate









Tools & Storage

$1,632

$256.8

15.7%









Security

$510

$54.8

10.8%









Industrial

$488

$74.7

15.3%




•Tools & Storage net sales increased 3% versus 1Q'14 as volume (+9%) and price (+1%), were partially offset by currency (-7%). Organic growth was particularly strong in North America (+15%) and Europe (+9%). North America continued to benefit from healthy underlying tool demand across the construction and industrial channels as well as share gains from new products and brand extensions aided by strong execution at the customer level. Europe's trend of strong organic growth continued as new products, an expanded retail footprint and solid commercial momentum continued to generate share gains in many markets, in spite of a challenged overall economic recovery. Emerging markets organic growth was relatively flat, as strong growth from mid-price point product launches and pricing actions, most notably in Latin America, offset steep declines in Russia and softness in China. Overall segment profit rate was 15.7%, up from the 1Q'14 rate of 13.5%, as volume leverage, price, productivity and cost management more than offset currency pressures.


•Security net sales decreased 6% versus 1Q'14 as organic growth of 2% driven by volume (+1%) and price (+1%), was significantly impacted by currency (-8%). Organic growth within North America and emerging markets ("NA & EM") of 2% resulted from strong automatic doors revenues and improved performance in the NA commercial locks business which returned to growth after five quarters of organic declines. Europe's organic growth rate was 1%, the second consecutive quarter of flat or positive organic growth, led by higher installation revenues. Europe order rates were up 3% for the quarter with attrition remaining within the target range of 10-12%.

Overall Security segment profit rate was 10.8%, a 110 basis point increase from the 1Q'14 rate of 9.7%. The year-over-year improvement in the rate was due primarily to improved performance within Europe.


•Industrial net sales decreased 2% versus 1Q'14 as volume (+6%) was more than offset by currency (-8%). Engineered Fastening achieved double digit organic growth (+12%) driven by strong global automotive and electronics revenues. Infrastructure organic revenues declined 15% due to decreasing Oil & Gas revenues from delayed or suspended pipeline construction activity offset by modest growth within Hydraulic Tools. Overall Industrial segment profit rate was 15.3%, consistent with the prior quarter but down from the 1Q'14 rate of 17.4%, as lower Oil & Gas volumes and currency more than offset favorable volume leverage from Engineered Fastening, productivity gains and cost control.

President and Chief Operating Officer, James M. Loree, commented, "The first quarter of 2015 represented another strong quarter of organic growth and margin expansion for Stanley Black & Decker. The formation of our new Tools & Storage platform is proceeding as planned, with the larger and stronger business poised for long-term profitable growth. Our Engineered Fastening business maintained its impressive performance during the quarter and while emerging markets remain challenging, we continue to be optimistic about our ability to generate above market growth in these regions due to our prior investments in support of our mid-price point product launches.

"Security continues to perform to expectations, delivering positive organic revenue growth and an expanded operating margin rate versus the prior year. Our plans to exit Europe's Spain and Italy operations are proceeding on track, and this action, as well as the other global organizational and operational enhancements we have made, give us confidence in our ability to show both top and bottom line improvement as planned within Security during 2015."

Updated 2015 Outlook

Donald Allan Jr., Senior Vice President and CFO, commented, "We are maintaining our 2015 EPS outlook of $5.65 - $5.85 on a GAAP basis (including $50 million or $0.25 EPS, in restructuring charges) and our free cash flow outlook of at least $1 billion. Our current 2015 EPS outlook reflects the strong first quarter performance and improved organic growth outlook, which combined with an acceleration of planned share repurchases, are expected to offset the impact of the significant weakening of various foreign currencies versus the U.S. dollar. Specific to shares, since the beginning of the fourth quarter of 2014 we have reduced our share count by the equivalent of ~$900 million of shares utilizing $326 million of cash as well as equity derivatives, putting us well on our way to completing our share repurchase plan announced in late 2013. We are clearly encouraged by our first quarter performance despite difficult currency conditions and remain confident that 2015 will be another step forward in achieving our long-term financial objectives."

The Company will host a conference call with investors today, April 23, at 8:00am ET. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.

You can also access the slides via the Stanley Black & Decker Investor Relations iPad & iPhone app from the Apple App Store by searching for "SWK Investor Relations".

The call will be accessible by telephone at 1 (800) 708-4540, from outside the U.S. at +1 (847) 619-6397, and via the Internet at www.stanleyblackanddecker.com. To participate, please register on the web site at least fifteen minutes prior to the call and download and install any necessary audio software. Please use the conference identification number 3935-9357. A replay will also be available two hours after the call and can be accessed at 1 (888) 843-7419 or +1 (630) 652-3042 using the passcode 3935-9357#. The replay will also be available as a podcast within 24 hours and can be accessed on our website and via iTunes.

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.

Contact: Greg Waybright
Vice President, Investor & Government Relations
greg.waybright@sbdinc.com
(860) 827-3833




..
View photo
.Stanley Black & Decker
These results reflect the Company's continuing operations. In 4Q'14, the Company classified the results of the Security segment's Spain and Italy operations as held for sale based on management's intention to sell these operations. The operating results of Security Spain and Italy have been reported as discontinued operations for 1Q'15 and 1Q'14. In 3Q'13, the Company classified two small businesses within the Security and Industrial segments as held for sale based on management's intention to sell these businesses; these businesses were sold during 2014. The operating results of these businesses have been reported as discontinued operations for 1Q'14. Total sales reported as discontinued operations were $17.9 million and $31.4 million for 1Q'15 and 1Q'14, respectively.

In the first quarter of 2015, the Company combined the Construction & Do-It-Yourself ("CDIY") business with certain complementary elements of the Industrial and Automotive Repair ("IAR") and Healthcare businesses (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. As a result of this change, the legacy CDIY segment was renamed Tools & Storage. The Company recast segment net sales and profit for 1Q'14 to align with this change in organizational structure. There is no impact to the consolidated financial statements of the Company as a result of this change.

Organic sales growth is defined as total sales growth less the sales of companies acquired in the past twelve months and any foreign currency impacts. Operating margin is defined as sales less cost of sales and selling, general and administrative expenses. Management uses operating margin and its percentage of net sales as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. Normalized free cash flow, as reconciled from the associated GAAP measures on page 10 for 1Q'15 and 1Q'14 is considered a meaningful pro forma metric to aid the understanding of the Company's cash flow performance aside from the material impact of M&A-related payments and charges.

CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are not historical, including but not limited to those regarding the Company's ability to: (i) achieve full year 2015 EPS of $5.65 - $5.85 on a GAAP basis (including $50 million or $0.25 EPS in restructuring charges); (ii) generate free cash flow of at least $1.0 billion for 2015 ; and (iii) continue to show both top and bottom line improvement within Security during 2015; (collectively, the "Results"); are "forward looking statements" and subject to risk and uncertainty.

The Company's ability to deliver the Results as described above is based on current expectations and involves inherent risks and uncertainties, including factors listed below and other factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations. In addition to the risks, uncertainties and other factors discussed in this press release, the risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied in the forward looking statements include, without limitation, those set forth under Item 1A Risk Factors of the Company's Annual Report on Form 10-K and any material changes thereto set forth in any subsequent Quarterly Reports on Form 10-Q, or those contained in the Company's other filings with the Securities and Exchange Commission, and those set forth below.

The Company's ability to deliver the Results is dependent, or based, upon: (i) the Company's ability to capitalize on operational improvements in both Security Europe and North America as well as execute on its divestiture of Security's operations in Spain and Italy; (ii) the Company's ability to invest in its business strategically and focus on operational excellence to deliver organic growth of approximately 5% during 2015; (iii) the Company's ability to successfully execute upon cost actions within Security and other businesses and to benefit from pricing and commodity deflation; (iv) the Company's ability to sufficiently lower its average share count in 2015; (v) foreign exchange headwinds being approximately $200-220 million in 2015; (vi) the Company's ability to achieve a tax rate relatively consistent with the 2014 tax rate; (vii); the Company's ability to limit one-time restructuring charges to approximately $50 million in 2015; (viii) successful integration of acquisitions completed during the year, as well as integration of existing businesses and formation of new business platforms; (ix) the continued acceptance of technologies used in the Company's products and services; (x) the Company's ability to manage existing Sonitrol franchisee and Mac Tools relationships; (xi) the Company's ability to minimize costs associated with any sale or discontinuance of a business or product line, including any severance, restructuring, legal or other costs; (xii) the proceeds realized with respect to any business or product line disposals; (xiii) the extent of any asset impairments with respect to any businesses or product lines that are sold or discontinued; (xiv) the success of the Company's efforts to manage freight costs, steel and other commodity costs as well as capital expenditures; (xv) the Company's ability to sustain or increase prices in order to, among other things, offset or mitigate the impact of steel, freight, energy, non-ferrous commodity and other commodity costs and any inflation increases and/or currency impacts; (xvi) the Company's ability to generate free cash flow and maintain a strong debt to capital ratio; (xvii) the Company's ability to identify and effectively execute productivity improvements and cost reductions, while minimizing any associated restructuring charges; (xviii) the Company's ability to obtain favorable settlement of tax audits; (xix) the ability of the Company to generate earnings sufficient to realize future income tax benefits during periods when temporary differences become deductible; (xx) the continued ability of the Company to access credit markets under satisfactory terms; (xxi) the Company's ability to negotiate satisfactory price and payment terms under which the Company buys and sells goods, services, materials and products; (xxii) the Company's ability to successfully develop, market and achieve sales from new products and services; and (xxiii) the availability of cash to repurchase shares when conditions are right.

The Company's ability to deliver the Results is also dependent upon: (i) the success of the Company's marketing and sales efforts, including the ability to develop and market new and innovative products at the right price points in both existing and new markets; (ii) the ability of the Company to maintain or improve production rates in the Company's manufacturing facilities, respond to significant changes in product demand and fulfill demand for new and existing products; (iii) the Company's ability to continue improvements in working capital through effective management of accounts receivable and inventory levels; (iv) the ability to continue successfully managing and defending claims and litigation; (v) the success of the Company's efforts to mitigate any adverse earnings impact resulting from increases generated by, for example, increases in the cost of energy or significant Euro, Canadian Dollar, Chinese Renminbi or other currency fluctuations; (vi) the geographic distribution of the Company's earnings; (vii) the commitment to and success of the Stanley Fulfillment System; and (viii) successful implementation with expected results of cost reduction programs.

The Company's ability to achieve the Results will also be affected by external factors. These external factors include: challenging global geopolitical and macroeconomic environment; the economic environment of emerging markets, particularly Latin America, Russia and Turkey; pricing pressure and other changes within competitive markets; the continued consolidation of customers particularly in consumer channels; inventory management pressures on the Company's customers; the impact the tightened credit markets may have on the Company or its customers or suppliers; the extent to which the Company has to write off accounts receivable or assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; increasing competition; changes in laws, regulations and policies that affect the Company, including, but not limited to trade, monetary, tax and fiscal policies and laws; the timing and extent of any inflation or deflation; the impact of poor weather conditions on sales; currency exchange fluctuations; the impact of dollar/foreign currency exchange and interest rates on the competitiveness of products and the Company's debt program; the strength of the U.S. and European economies; the extent to which world-wide markets associated with homebuilding and remodeling stabilize and rebound; the impact of events that cause or may cause disruption in the Company's supply, manufacturing, distribution and sales networks such as war, terrorist activities, and political unrest; and recessionary or expansive trends in the economies of the world in which the Company operates. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.





STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited, Millions of Dollars Except Per Share Amounts)
















FIRST QUARTER




2015


2014








NET SALES

$ 2,630.0


$ 2,617.1








COSTS AND EXPENSES






Cost of sales

1,656.4


1,660.7



Gross margin

973.6


956.4



% of Net Sales

37.0%


36.5%









Selling, general and administrative

623.0


640.6



% of Net Sales

23.7%


24.5%









Operating margin

350.6


315.8



% of Net Sales

13.3%


12.1%









Other - net

63.7


60.9



Restructuring charges (credits)

24.9


(3.7)



Income from operations

262.0


258.6









Interest - net

40.7


40.7








EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

221.3


217.9



Income tax expense on continuing operations

55.3


48.0


NET EARNINGS FROM CONTINUING OPERATIONS

166.0


169.9









Less: net (loss) earnings attributable to non-controlling interests

(0.8)


0.2








NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE






TO COMMON SHAREOWNERS

166.8


169.7








NET LOSS FROM DISCONTINUED OPERATIONS

(4.5)


(7.8)








NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS

$ 162.3


$ 161.9














BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK






Continuing operations

$ 1.10


$ 1.09



Discontinued operations

(0.03)


(0.05)



Total basic earnings per share of common stock

$ 1.07


$ 1.04








DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK






Continuing operations

$ 1.07


$ 1.07



Discontinued operations

(0.03)


(0.05)



Total diluted earnings per share of common stock

$ 1.04


$ 1.02








DIVIDENDS PER SHARE

$ 0.52


$ 0.50








AVERAGE SHARES OUTSTANDING (in thousands)






Basic

152,172


155,905



Diluted

156,537


158,951








STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATED BALANCE SHEETS


(Unaudited, Millions of Dollars)












April 4,


January 3,





2015


2015









ASSETS







Cash and cash equivalents


$ 435.5


$ 496.6



Accounts and notes receivable, net

1,612.8


1,396.7



Inventories, net


1,742.2


1,562.7



Assets held for sale


24.9


29.5



Other current assets


509.3


463.3



Total current assets


4,324.7


3,948.8



Property, plant and equipment, net

1,411.5


1,454.1



Goodwill and other intangibles, net

9,788.6


10,027.2



Other assets


418.9


419.0



Total assets


$ 15,943.7


$ 15,849.1
















LIABILITIES AND SHAREOWNERS' EQUITY






Short-term borrowings


$ 606.2


$ 7.5



Accounts payable


1,674.8


1,579.2



Accrued expenses


1,144.2


1,221.9



Liabilities held for sale


21.6


23.4



Total current liabilities

3,446.8


2,832.0



Long-term debt


3,855.7


3,839.8



Other long-term liabilities


2,944.0


2,665.4



Stanley Black & Decker, Inc. shareowners' equity

5,615.2


6,429.1



Non-controlling interests' equity

82.0


82.8



Total liabilities and equity

$ 15,943.7


$ 15,849.1








STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


SUMMARY OF CASH FLOW ACTIVITY


(Unaudited, Millions of Dollars)













FIRST QUARTER














2015


2014




OPERATING ACTIVITIES








Net earnings from continuing operations

$ 166.0


$ 169.9





Net loss from discontinued operations

(4.5)


(7.8)





Depreciation and amortization

102.5


110.4





Changes in working capital1

(377.9)


(330.3)





Other

(83.6)


(94.2)





Net cash used in operating activities

(197.5)


(152.0)




















INVESTING AND FINANCING ACTIVITIES








Capital and software expenditures

(45.9)


(57.8)





Proceeds from issuances of common stock

43.0


13.2





Net short-term borrowings

598.9


282.3





Net investment hedge settlements

30.4


(6.3)





Cash dividends on common stock

(82.7)


(80.7)





Purchases of common stock for treasury

(348.0)


(19.4)





Effect of exchange rate changes on cash

(45.6)


(7.1)





Other

(13.7)


(35.8)





Net cash provided by investing and financing activities

136.4


88.4












Decrease in Cash and Cash Equivalents

(61.1)


(63.6)












Cash and Cash Equivalents, Beginning of Period

496.6


496.2












Cash and Cash Equivalents, End of Period

$ 435.5


$ 432.6




















Free Cash Flow Computation2







Operating cash outflow

$ (197.5)


$ (152.0)




Less: Capital and software expenditures

(45.9)


(57.8)




Free cash outflow (before dividends)

$ (243.4)


$ (209.8)




Merger & Acquisition-related charges and payments4

19.8


51.8




Free cash outflow, normalized (before dividends)3

$ (223.6)


$ (158.0)











1

The change in working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.










2,3

Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. Normalized free cash flow, as reconciled above, is considered a meaningful pro forma metric to aid the understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities.










4

Merger & Acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.











STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES


BUSINESS SEGMENT INFORMATION


(Unaudited, Millions of Dollars)
















FIRST QUARTER




2015


2014






NET SALES






Tools & Storage

$ 1,632.1


$ 1,574.8



Security

509.6


544.9



Industrial

488.3


497.4



Total

$ 2,630.0


$ 2,617.1














SEGMENT PROFIT






Tools & Storage

$ 256.8


$ 212.8



Security

54.8


52.8



Industrial

74.7


86.7



Segment Profit

386.3


352.3



Corporate Overhead

(35.7)


(36.5)



Total

$ 350.6


$ 315.8














Segment Profit as a Percentage of Net Sales






Tools & Storage

15.7%


13.5%



Security

10.8%


9.7%



Industrial

15.3%


17.4%



Segment Profit

14.7%


13.5%



Corporate Overhead

(1.4%)


(1.4%)



Total

13.3%


12.1%



























👍️0
Drmicrocap Drmicrocap 9 years ago


Stanley Black & Decker Reports 4Q And Full Year 2014 Results

.

Business Wire
Stanley Black & Decker
January 29, 2015 6:00 AM








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NEW BRITAIN, Conn.--(BUSINESS WIRE)--

Stanley Black & Decker (SWK) today announced fourth quarter and full year 2014 financial results.
• 4Q’14 Revenues Increased 3% To $3.0 Billion; Organic Growth Of 7%
• 4Q’14 Operating Margin Expanded 170 Basis Points To 13.2%; Excluding Charges, Operating Margin Expanded 50 Basis Points To 13.7%
• 4Q’14 Diluted GAAP EPS Was $1.37; Excluding Charges, 4Q’14 Diluted EPS Was $1.56
• Full Year Revenues Increased 4% to $11.3 Billion; Organic Growth Of 5%
• Full Year Operating Margin Expanded 220 Basis Points To 13.3%; Excluding Charges, Operating Margin Expanded 90 Basis Points To 13.6%
• Full Year Diluted GAAP EPS Was $5.37; Excluding Charges, Diluted EPS Was $5.67
• 2014 Free Cash Flow Record Of $1.0 Billion; Working Capital Turns Reached 9.2
• Expect 2015 Full Year EPS Of $5.65 To $5.85 On A GAAP Basis (Inclusive Of $0.25 In Restructuring Charges) And Free Cash Flow Of At Least $1.0 Billion

4Q’14 Key Points:
• Net sales for the period were $3.0 billion, up 3% versus the prior year, primarily attributable to volume (+6%) and price (+1%), partially offset by currency (-4%).
• The gross margin rate for the quarter was 35.2%. Excluding charges the gross margin rate was 35.3%, down 50 basis points from the prior year rate of 35.8%, as favorable volume, price, productivity and cost actions were more than offset by unfavorable currency and lower Security margins.
• SG&A expenses were 22.1% of sales. Excluding charges, SG&A expenses were 21.6% of sales, compared to 22.6% in 4Q’13.
• Operating margin rate was 13.2%. Excluding charges, operating margin rate was 13.7%, up 50 basis points from 4Q’13, as actions taken to improve profitability and generate operating leverage more than offset unfavorable currency.
• The tax rate was 17.6%. Excluding charges, the tax rate was 18.3%, 360 basis points lower than last year’s rate due primarily to the favorable shift of earnings to lower taxed jurisdictions, the passage of U.S. tax legislation and settlement of various income tax audits in the fourth quarter.
• Working capital turns for the quarter were 9.2, up 1.1 turns from 4Q’13. Free cash flow for the quarter was $636 million consistent with 4Q’13.

Stanley Black & Decker’s Chairman and CEO, John F. Lundgren, commented, “We were very pleased with our performance in the fourth quarter and for the full year. Our commitment to well balanced capital allocation priorities combined with our focus on key operational levers produced favorable organic growth, operating leverage and free cash flow results despite adverse currency and volatile macro environments.

“As we look to 2015 we continue to enjoy strong operating momentum amidst similar operating conditions and, as a consequence, are well positioned to manage through another challenging environment. Our long-term strategy and financial objectives remain intact, and we are confident in our ability to continue to generate strong underlying organic revenue, earnings and cash flow growth while producing meaningful returns for shareholders.”

4Q’14 Segment Results

($ in M) 4Q' 14 Segment Results
Sales Profit Charges1 Profit
Ex-Charges1
Profit Rate Profit Rate
Ex-Charges1


CDIY $1,496 $244.5 $0.3 $244.8 16.3% 16.4%

Industrial $891 $136.7 $2.2 $138.9 15.3% 15.6%

Security $595 $69.7 $3.1 $72.8 11.7% 12.2%

1 See Merger And Acquisition (M&A) One-Time Charges On Page 5
• CDIY net sales increased 7% versus 4Q’13 as a result of volume (+10%) and price (+1%), partially offset by currency (-4%). Organic growth was strong in all regions led by North America (+14%). North America realized share gains and benefitted from continued brisk underlying tool demand across all channels driven primarily by new products and a robust holiday sell-in and sell-through season. Europe (+7%) maintained its trend of strong organic growth as new products and an expanded retail footprint continued to generate market share gains, in spite of a challenged economic backdrop. Organic growth accelerated within the emerging markets (+7%) led by Latin America, despite persistently volatile economic conditions across all emerging markets. Excluding charges, overall segment profit rate was 16.4%, up from the 4Q’13 rate of 14.8%, as volume leverage, price, productivity and cost management more than offset currency pressures.
• Industrial net sales increased 1% versus 4Q’13 as a result of volume (+5%) and modestly positive price, partially offset by currency (-4%). Engineered Fastening achieved 10% organic growth driven by both strong global automotive and electronic revenues. Organic sales for the Industrial and Automotive Repair (“IAR”) business were up 5% with solid performances in both the North American and European tools businesses. Infrastructure organic growth was down 10% as strong hydraulic tools growth was negated by lower oil & gas revenues due to the recent contraction in oil prices and resulting slowdown in pipeline construction. Overall Industrial segment profit rate excluding charges was 15.6%, relatively consistent with the 4Q’13 rate of 15.8%, reflecting favorable volume leverage, productivity gains and cost control, offset by currency.
• Security net sales decreased 1% versus 4Q’13 as organic growth of 3% driven by volume (+2%) and price (+1%), was offset by currency (-4%). Organic growth within North America and emerging markets (“NA & EM”) of 5% was primarily a result of strong performances within the commercial electronics and automatic doors businesses. Europe’s organic growth rate was flat, a significant improvement versus prior quarters. Europe order rates were up mid-single digits for the quarter with attrition rates for the year stabilized within the target range of 10-12%.

Overall Security segment profit rate excluding charges was 12.2%, a slight increase from the 3Q’14 rate of 12.1% and down 80 basis points from the 4Q’13 rate of 13.0%. The year-over-year decrease in Security’s segment rate for the quarter resulted primarily from the expected temporary project mix impact within North America which more than offset a 110 basis point improvement within Europe. The Security segment profit rate excluding charges for the full year of 11.7% was flat with the prior year.

President and Chief Operating Officer, James M. Loree, commented, “The fourth quarter represented another solid quarter of organic growth, margin expansion and cash flow generation for the Company. Our CDIY and Industrial segments maintained their impressive performance for the year from both an organic growth and operating leverage perspective, led by developed markets, while growth in the emerging markets continued to outpace the underlying volatile and slowing markets due in large part to the initial successes of our mid-price point product launches.

“We continued to see positive signs within the European Security business as its operating margin rate, which improved sequentially and increased 110 basis points above the prior year, and order growth met expectations for the quarter. Additionally, in the fourth quarter we announced our decision to divest Security’s operations in Spain and Italy, allowing us to focus our efforts on the regions with stronger structural characteristics and thus the highest growth and margin potential. The combination of this action and other operational improvements in both Europe and North America, give us confidence that we can continue to show both top and bottom line improvement within Security during 2015.”

2015 Outlook

Donald Allan Jr., Senior Vice President and CFO, commented, “In 2015 we expect to build off the momentum we generated during 2014 towards achieving our long-term financial objectives. Investing in our business strategically and focusing on operational excellence will position us to deliver organic growth of approximately 3-4% during 2015 in a continuously challenging global macroeconomic climate and drive operating leverage, resulting in 2015 EPS of $5.65 - $5.85 on a GAAP basis which includes $50 million or $0.25 EPS in restructuring charges.

“We have made the decision to provide our guidance for 2015 on a GAAP basis given the significant reduction in annual restructuring and other one-time charges, which were more pronounced in prior years due to sizable M&A activity during 2010 - 2013.”

The following summarizes the key 2015 planning assumptions:
• Organic growth of approximately 3-4% (approximately +$0.45 - $0.55)
• Cost actions within Security and other businesses, pricing and commodity deflation (approximately +$0.50)
• Lower average share count due to repurchases of shares weighted to the second half of 2015 (approximately +$0.09 - $0.12)
• Foreign exchange headwinds of approximately $140 million (approximately - $0.70 - $0.75)
• The tax rate will be relatively consistent with the 2014 rate
• Free cash flow is expected to be at least $1 billion

Mr. Allan added, “We also remain committed to our near-term capital allocation plan of modest debt deleveraging, completed at the end of 2014, reducing our share count by the equivalent of approximately $1 billion of shares and supporting a strong and growing dividend. These actions combined with our near-term operational improvements are expected to result in continued improvement to our cash flow return on investment during 2015.”

Merger And Acquisition (M&A) One-Time Charges

4Q’14: Total one-time charges in 4Q’14 of $39.9 million primarily relate to integration and consulting costs. Gross margin includes $0.3 million of these one-time charges while SG&A includes $14.1 million. $5.6 million of these costs that impact the Company’s operating margin are included in segment results, with the remainder in corporate overhead. Also included in one-time charges are $1.1 million in Other, net as well as $24.4 million in net Restructuring charges.

2014: Total one-time charges in 2014 of $53.9 million primarily relate to integration and consulting costs. Gross margin includes $1.8 million of these one-time charges while SG&A includes $31.6 million. $14.7 million of these costs that impact the Company’s operating margin are included in segment results, with the remainder in corporate overhead. Also included in one-time charges are $1.7 million in Other, net as well as $18.8 million in net Restructuring charges.

The Company will host a conference call with investors today, Thursday, January 29, at 8:00am ET. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.

You can also access the slides via the Stanley Black & Decker Investor Relations iPad & iPhone app from the Apple App Store by searching for “SWK Investor Relations”.

The call will be accessible by telephone at 1 (800) 708-4540, from outside the U.S. at +1 (847) 619-6397, and via the Internet at www.stanleyblackanddecker.com. To participate, please register on the web site at least fifteen minutes prior to the call and download and install any necessary audio software. Please use the conference identification number 3868-1018. A replay will also be available two hours after the call and can be accessed at 1 (888) 843-7419 or +1 (630) 652-3042 using the passcode 3868-1018#. The replay will also be available as a podcast within 24 hours and can be accessed on our website and via iTunes.

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.

These results reflect the Company’s continuing operations. In 4Q’14, the Company classified the results of the Security segment’s Spain and Italy operations as held for sale based on management’s intention to sell these operations. The operating results of Security Spain and Italy have been reported as discontinued operations for 2014 and 2013. In 3Q’13, the Company classified two small businesses within the Security and Industrial segments as held for sale based on management's intention to sell these businesses. The businesses within the Security and Industrial segments were sold during 2014. The operating results of these businesses, including the related losses on sale, have been reported as discontinued operations for 2013 and through the date of sale for 2014. Total sales reported as discontinued operations were $25.2 million and $34.8 million for 4Q’14 and 4Q’13, respectively, and $118.4 million and $150.1 million for 2014 and 2013, respectively.

The Company recast 2013 segment net sales and profit between the CDIY and Industrial segments to align reporting with the current management of the Company’s operations in the emerging markets to be comparable with the current year presentation. There is no impact to the consolidated financial statements of the Company as a result of this segment realignment.
Organic sales growth is defined as total sales growth less the sales of companies acquired in the past twelve months and any foreign currency impacts. Operating margin is defined as sales less cost of sales and selling, general and administrative expenses. Management uses operating margin and its percentage of net sales as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. The normalized statement of operations and business segment information, as reconciled to GAAP on pages 13 to 16 for 2014 and 2013, are considered relevant to aid analysis of the Company’s operating performance and earnings results aside from the material impact of the one-time charges and payments associated with the Black & Decker merger, the Niscayah and Infastech acquisitions and other smaller acquisitions of the Company. Normalized free cash flow, as reconciled from the associated GAAP measures on page 11 for 2014 and 2013 is considered a meaningful pro forma metric to aid the understanding of the Company’s cash flow performance aside from the material impact of the M&A-related payments and charges.

CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are not historical, including but not limited to those regarding the Company’s ability to: (i) achieve full year 2015 EPS of $5.65 - $5.85 on a GAAP basis (including $50 million or $0.25 EPS in restructuring charges); (ii) generate free cash flow of at least $1.0 billion for 2015 ; (iii) continue to show both top and bottom line improvement within Security during 2015; (iv) reduce its share count by the equivalent of approximately $1.0 billion of shares and support a strong and growing dividend; and (v) improve our cash flow return on investment through 2015 (collectively, the “Results”); are “forward looking statements” and subject to risk and uncertainty.

The Company’s ability to deliver the Results as described above is based on current expectations and involves inherent risks and uncertainties, including factors listed below and other factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations. In addition to the risks, uncertainties and other factors discussed in this press release, the risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied in the forward looking statements include, without limitation, those set forth under Item 1A Risk Factors of the Company’s Annual Report on Form 10-K and any material changes thereto set forth in any subsequent Quarterly Reports on Form 10-Q, or those contained in the Company’s other filings with the Securities and Exchange Commission, and those set forth below.

The Company’s ability to deliver the Results is dependent, or based, upon: (i) the Company’s ability to capitalize on operational improvements in both Security Europe and North America as well as execute on its divestiture of Security’s operations in Spain and Italy; (ii) the Company’s ability to invest in its business strategically and focus on operational excellence to deliver organic growth of approximately 3-4% ( approximately $0.45 - $0.55) during 2015; (iii) the Company’s ability to execute upon cost actions within Security and other businesses and to benefit from pricing and commodity deflation (approximately +$0.50); (iv) the Company’s ability to lower average share count due to repurchases of shares mostly in the second half of 2015 (approximately +$0.09 - $0.12); (v) foreign exchange headwinds being approximately $140 million (approximately - $0.70 - $0.75) in 2015; (vi) the Company’s ability to achieve a tax rate relatively consistent with the 2014 tax rate; (vii); the Company’s ability to limit one-time restructuring charges to approximately $50 million in 2015; (viii) successful integration of acquisitions completed during the year, as well as integration of existing businesses; (ix) the continued acceptance of technologies used in the Company’s products and services; (x) the Company’s ability to manage existing Sonitrol franchisee and Mac Tools relationships; (xi) the Company’s ability to minimize costs associated with any sale or discontinuance of a business or product line, including any severance, restructuring, legal or other costs; (xii) the proceeds realized with respect to any business or product line disposals; (xiii) the extent of any asset impairments with respect to any businesses or product lines that are sold or discontinued; (xiv) the success of the Company’s efforts to manage freight costs, steel and other commodity costs as well as capital expenditures; (xv) the Company’s ability to sustain or increase prices in order to, among other things, offset or mitigate the impact of steel, freight, energy, non-ferrous commodity and other commodity costs and any inflation increases and/or currency impacts; (xvi) the Company’s ability to generate free cash flow and maintain a strong debt to capital ratio; (xvii) the Company’s ability to identify and effectively execute productivity improvements and cost reductions, while minimizing any associated restructuring charges; (xviii) the Company’s ability to obtain favorable settlement of tax audits; (xix) the ability of the Company to generate earnings sufficient to realize future income tax benefits during periods when temporary differences become deductible; (xx) the continued ability of the Company to access credit markets under satisfactory terms; (xxi) the Company’s ability to negotiate satisfactory price and payment terms under which the Company buys and sells goods, services, materials and products; (xxii) the Company’s ability to successfully develop, market and achieve sales from new products and services; and (xxiii) the availability of cash to repurchase shares when conditions are right.

The Company’s ability to deliver the Results is also dependent upon: (i) the success of the Company’s marketing and sales efforts, including the ability to develop and market new and innovative products at the right price points in both existing and new markets; (ii) the ability of the Company to maintain or improve production rates in the Company’s manufacturing facilities, respond to significant changes in product demand and fulfill demand for new and existing products; (iii) the Company’s ability to continue improvements in working capital through effective management of accounts receivable and inventory levels; (iv) the ability to continue successfully managing and defending claims and litigation; (v) the success of the Company’s efforts to mitigate any adverse earnings impact resulting from increases generated by, for example, increases in the cost of energy or significant Euro, Canadian Dollar, Chinese Renminbi or other currency fluctuations; (vi) the geographic distribution of the Company’s earnings; (vii) the commitment to and success of the Stanley Fulfillment System; and (viii) successful implementation with expected results of cost reduction programs.

The Company’s ability to achieve the Results will also be affected by external factors. These external factors include: challenging global geopolitical and macroeconomic environment; the economic environment of emerging markets, particularly Latin America, Russia and Turkey; pricing pressure and other changes within competitive markets; the continued consolidation of customers particularly in consumer channels; inventory management pressures on the Company’s customers; the impact the tightened credit markets may have on the Company or its customers or suppliers; the extent to which the Company has to write off accounts receivable or assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; increasing competition; changes in laws, regulations and policies that affect the Company, including, but not limited to trade, monetary, tax and fiscal policies and laws; the timing and extent of any inflation or deflation; the impact of poor weather conditions on sales; currency exchange fluctuations; the impact of dollar/foreign currency exchange and interest rates on the competitiveness of products and the Company’s debt program; the strength of the U.S. and European economies; the extent to which world-wide markets associated with homebuilding and remodeling stabilize and rebound; the impact of events that cause or may cause disruption in the Company’s supply, manufacturing, distribution and sales networks such as war, terrorist activities, and political unrest; and recessionary or expansive trends in the economies of the world in which the Company operates. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)


FOURTH QUARTER YEAR TO DATE
2014 2013 2014 2013

NET SALES $ 2,982.5 $ 2,880.6 $ 11,338.6 $ 10,889.5

COSTS AND EXPENSES
Cost of sales 1,931.4 1,853.8 7,235.9 6,985.8
Gross margin 1,051.1 1,026.8 4,102.7 3,903.7
% of Net Sales 35.2 % 35.6 % 36.2 % 35.8 %

Selling, general and administrative 658.3 696.9 2,595.9 2,690.6
% of Net Sales 22.1 % 24.2 % 22.9 % 24.7 %

Operating margin 392.8 329.9 1,506.8 1,213.1
% of Net Sales 13.2 % 11.5 % 13.3 % 11.1 %

Other - net 60.5 98.2 239.6 304.5
Restructuring charges 24.4 133.2 18.8 173.7
Income from operations 307.9 98.5 1,248.4 734.9

Interest - net 42.2 38.3 163.6 147.3

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 265.7 60.2 1,084.8 587.6
Income tax expense (benefit) on continuing operations 46.7 (10.2 ) 227.1 68.6
NET EARNINGS FROM CONTINUING OPERATIONS 219.0 70.4 857.7 519.0

Less: net (loss) earnings attributable to non-controlling interests (0.3 ) (0.1 ) 0.5 (1.0 )

NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE
TO COMMON SHAREOWNERS 219.3 70.5 857.2 520.0

NET LOSS FROM DISCONTINUED OPERATIONS (73.5 ) (14.4 ) (96.3 ) (29.7 )

NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS $ 145.8 $ 56.1 $ 760.9 $ 490.3


BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Continuing operations $ 1.41 $ 0.45 $ 5.49 $ 3.35
Discontinued operations (0.47 ) (0.09 ) (0.62 ) (0.19 )
Total basic earnings per share of common stock $ 0.94 $ 0.36 $ 4.87 $ 3.16

DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Continuing operations $ 1.37 $ 0.44 $ 5.37 $ 3.28
Discontinued operations (0.46 ) (0.09 ) (0.60 ) (0.19 )
Total diluted earnings per share of common stock $ 0.91 $ 0.35 $ 4.76 $ 3.09

DIVIDENDS PER SHARE $ 0.52 $ 0.50 $ 2.04 $ 1.98

AVERAGE SHARES OUTSTANDING (in thousands)
Basic 155,799 155,512 156,090 155,237
Diluted 160,013 159,200 159,737 158,776





STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)


January 3,
December 28,
2015 2013

ASSETS
Cash and cash equivalents $ 496.6 $ 496.2
Accounts and notes receivable, net 1,396.7 1,578.5
Inventories, net 1,562.7 1,473.3
Assets held for sale 29.5 136.9
Other current assets 463.3 331.7
Total current assets 3,948.8 4,016.6
Property, plant and equipment, net 1,454.1 1,478.6
Goodwill and other intangibles, net 10,027.2 10,600.0
Other assets 114.6 439.9
Total assets $ 15,544.7 $ 16,535.1


LIABILITIES AND SHAREOWNERS' EQUITY
Short-term borrowings $ 7.5 $ 402.6
Accounts payable 1,579.2 1,552.9
Accrued expenses 1,221.9 1,219.5
Liabilities held for sale 23.4 61.0
Total current liabilities 2,832.0 3,236.0
Long-term debt 3,839.8 3,799.4
Other long-term liabilities 2,343.8 2,619.2
Stanley Black & Decker, Inc. shareowners' equity 6,446.3 6,799.2
Non-controlling interests' equity 82.8 81.3
Total liabilities and equity $ 15,544.7 $ 16,535.1



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)

FOURTH QUARTER YEAR TO DATE

2014 2013 2014 2013
OPERATING ACTIVITIES
Net earnings from continuing operations $ 219.0 $ 70.4 $ 857.7 $ 519.0
Net loss from discontinued operations (73.5 ) (14.4 ) (96.3 ) (29.7 )
Depreciation and amortization 112.4 118.6 449.8 441.3
Changes in working capital1 433.2 384.9 (9.8 ) 13.3
Other 56.2 172.2 80.2 (75.9 )
Net cash provided by operating activities 747.3 731.7 1,281.6 868.0


INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures (111.6 ) (95.0 ) (291.0 ) (340.3 )
(Payments) proceeds from sales of businesses / assets (1.3 ) 1.0 11.5 97.5
Acquisitions, net of cash acquired - (7.3 ) (3.2 ) (933.9 )
Premium paid on debt extinguishment - (42.8 ) - (42.8 )
Proceeds from long-term borrowings - 726.7 - 726.7
Proceeds from issuances of common stock 34.6 15.9 85.6 154.6
Net short-term (repayments) borrowings (424.8 ) (810.8 ) (391.0 ) 388.7
Net investment hedge settlements 3.6 (3.4 ) (61.4 ) 3.6
Cash dividends on common stock (80.8 ) (77.7 ) (321.3 ) (312.7 )
Purchases of common stock for treasury (7.5 ) (6.6 ) (28.2 ) (39.2 )
Premium paid for equity option - (83.2 ) - (83.2 )
Payment on long-term debt (45.7 ) (300.5 ) (46.6 ) (302.2 )
Payment on forward share purchase contract - - - (350.0 )
Effect of exchange rate changes on cash (84.0 ) (11.6 ) (147.1 ) (44.9 )
Other (20.0 ) (9.3 ) (88.5 ) (9.7 )
Net cash used in investing and financing activities (737.5 ) (704.6 ) (1,281.2 ) (1,087.8 )

Increase (Decrease) in Cash and Cash Equivalents 9.8 27.1 0.4 (219.8 )

Cash and Cash Equivalents, Beginning of Period 486.8 469.1 496.2 716.0

Cash and Cash Equivalents, End of Period $ 496.6 $ 496.2 $ 496.6 $ 496.2



Free Cash Flow Computation2

Operating cash inflow $ 747.3 $ 731.7 $ 1,281.6 $ 868.0
Less: capital and software expenditures (111.6 ) (95.0 ) (291.0 ) (340.3 )
Free cash inflow (before dividends) $ 635.7 $ 636.7 $ 990.6 $ 527.7
Merger & Acquisition-related charges and payments4 36.1 69.4 152.2 351.7
Free cash inflow, normalized (before dividends)3 $ 671.8 $ 706.1 $ 1,142.8 $ 879.4


1


The change in working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.


2,3



Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important
measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include
deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions,
among other items. Normalized free cash flow, as reconciled above, is considered a meaningful pro forma metric to aid the
understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities.



4



Merger & Acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions,
including facility closure-related charges, employee-related charges and integration costs.




STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)


FOURTH QUARTER YEAR TO DATE
2014 2013 2014 2013

NET SALES
Construction & DIY $ 1,496.4 $ 1,397.4 $ 5,559.3 $ 5,271.4
Industrial 891.4 881.3 3,498.8 3,302.6
Security 594.7 601.9 2,280.5 2,315.5
Total $ 2,982.5 $ 2,880.6 $ 11,338.6 $ 10,889.5


SEGMENT PROFIT
Construction & DIY $ 244.5 $ 202.8 $ 871.5 $ 777.1
Industrial 136.7 135.1 553.5 456.7
Security 69.7 66.8 259.2 233.3
Segment Profit 450.9 404.7 1,684.2 1,467.1
Corporate Overhead (58.1 ) (74.8 ) (177.4 ) (254.0 )
Total $ 392.8 $ 329.9 $ 1,506.8 $ 1,213.1


Segment Profit as a Percentage of Net Sales
Construction & DIY 16.3 % 14.5 % 15.7 % 14.7 %
Industrial 15.3 % 15.3 % 15.8 % 13.8 %
Security 11.7 % 11.1 % 11.4 % 10.1 %
Segment Profit 15.1 % 14.0 % 14.9 % 13.5 %
Corporate Overhead (1.9 %) (2.6 %) (1.6 %) (2.3 %)
Total 13.2 % 11.5 % 13.3 % 11.1 %



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

FOURTH QUARTER 2014
Reported
Merger &
Acquisition-
Related
Charges1
Normalized3

Gross margin $ 1,051.1 $ 0.3 $ 1,051.4
% of Net Sales 35.2 % 35.3 %

Selling, general and administrative 658.3 (14.1 ) $ 644.2
% of Net Sales 22.1 % 21.6 %

Operating margin 392.8 14.4 407.2
% of Net Sales 13.2 % 13.7 %

Earnings from continuing operations before income taxes 265.7 39.9 305.6

Income taxes on continuing operations 46.7 9.1 55.8

Net earnings from continuing operations 219.3 30.8 250.1

Diluted earnings per share of common stock $ 1.37 $ 0.19 $ 1.56



1


Merger and acquisition-related charges relate primarily to integration and consulting costs.

FOURTH QUARTER 2013



Reported

Merger &
Acquisition-
Related
and Other
Charges2
Normalized3

Gross margin $ 1,026.8 $ 3.1 $ 1,029.9
% of Net Sales 35.6 % 35.8 %

Selling, general and administrative 696.9 (45.8 ) 651.1
% of Net Sales 24.2 % 22.6 %

Operating margin 329.9 48.9 378.8
% of Net Sales 11.5 % 13.2 %

Earnings from continuing operations before income taxes 60.2 212.2 272.4

Income tax (benefit) expense on continuing operations (10.2 ) 69.9 59.7

Net earnings from continuing operations 70.5 142.3 212.8

Diluted earnings per share of common stock $ 0.44 $ 0.89 $ 1.34



2



Merger and acquisition-related and other charges relate primarily to the Black & Decker merger and Niscayah and Infastech
acquisitions, including facility closure-related charges, employee-related charges and integration costs, as well as cost containment
charges. Other charges relate to the loss on extinguishment of debt.


3



The normalized 2014 and 2013 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s
margin and earnings results aside from the material impact of the merger & acquisition-related and other charges.




STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

YEAR TO DATE 2014
Reported
Merger &
Acquisition-
Related
Charges1
Normalized3

Gross margin $ 4,102.7 $ 1.8 $ 4,104.5
% of Net Sales 36.2 % 36.2 %

Selling, general and administrative 2,595.9 (31.6 ) 2,564.3
% of Net Sales 22.9 % 22.6 %

Operating margin 1,506.8 33.4 1,540.2
% of Net Sales 13.3 % 13.6 %

Earnings from continuing operations before income taxes 1,084.8 53.9 1,138.7

Income taxes on continuing operations 227.1 5.2 232.3

Net earnings from continuing operations 857.2 48.7 905.9

Diluted earnings per share of common stock $ 5.37 $ 0.30 $ 5.67



1


Merger and acquisition-related charges relate primarily to integration and consulting costs, as well as employee-related matters.

YEAR TO DATE 2013
Reported
Merger &
Acquisition-
Related and Other
Charges2
Normalized3

Gross margin $ 3,903.7 $ 29.5 $ 3,933.2
% of Net Sales 35.8 % 36.1 %

Selling, general and administrative 2,690.6 (135.7 ) 2,554.9
% of Net Sales 24.7 % 23.5 %

Operating margin 1,213.1 165.2 1,378.3
% of Net Sales 11.1 % 12.7 %

Earnings from continuing operations before income taxes 587.6 390.3 977.9

Income taxes on continuing operations 68.6 120.0 188.6

Net earnings from continuing operations 520.0 270.3 790.3

Diluted earnings per share of common stock $ 3.28 $ 1.70 $ 4.98



2



Merger and acquisition-related and other charges relate primarily to the Black & Decker merger and Niscayah and Infastech
acquisitions, including facility closure-related charges, employee-related charges and integration costs, as well as cost containment
charges. Other charges relate to the loss on extinguishment of debt.


3



The normalized 2014 and 2013 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s
margin and earnings results aside from the material impact of the merger & acquisition-related and other charges.






STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)

FOURTH QUARTER 2014
Reported
Merger &
Acquisition-
Related
Charges1
Normalized3
SEGMENT PROFIT

Construction & DIY $ 244.5 $ 0.3 $ 244.8
Industrial 136.7 2.2 138.9
Security 69.7 3.1 72.8
Segment Profit 450.9 5.6 456.5
Corporate Overhead (58.1 ) 8.8 (49.3 )
Total $ 392.8 $ 14.4 $ 407.2


Segment Profit as a Percentage of Net Sales
Construction & DIY 16.3 % 16.4 %
Industrial 15.3 % 15.6 %
Security 11.7 % 12.2 %
Segment Profit 15.1 % 15.3 %
Corporate Overhead (1.9 %) (1.7 %)
Total 13.2 % 13.7 %



1


Merger and acquisition-related charges relate primarily to integration and consulting costs.

FOURTH QUARTER 2013

Reported

Merger &
Acquisition-
Related
Charges2
Normalized3
SEGMENT PROFIT

Construction & DIY $ 202.8 $ 3.8 $ 206.6
Industrial 135.1 4.0 139.1
Security 66.8 11.4 78.2
Segment Profit 404.7 19.2 423.9
Corporate Overhead (74.8 ) 29.7 (45.1 )
Total $ 329.9 $ 48.9 $ 378.8


Segment Profit as a Percentage of Net Sales
Construction & DIY 14.5 % 14.8 %
Industrial 15.3 % 15.8 %
Security 11.1 % 13.0 %
Segment Profit 14.0 % 14.7 %
Corporate Overhead (2.6 %) (1.6 %)
Total 11.5 % 13.2 %



2



Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility
closure-related charges, employee-related charges and integration costs.


3



The normalized 2014 and 2013 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the
Company's segment profit results aside from the material impact of the merger and acquisition-related charges.






STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)

YEAR TO DATE 2014
Reported
Merger &
Acquisition-
Related
Charges1
Normalized3
SEGMENT PROFIT

Construction & DIY $ 871.5 $ 1.0 $ 872.5
Industrial 553.5 6.8 560.3
Security 259.2 6.9 266.1
Segment Profit 1,684.2 14.7 1,698.9
Corporate Overhead (177.4 ) 18.7 (158.7 )
Total $ 1,506.8 $ 33.4 $ 1,540.2


Segment Profit as a Percentage of Net Sales
Construction & DIY 15.7 % 15.7 %
Industrial 15.8 % 16.0 %
Security 11.4 % 11.7 %
Segment Profit 14.9 % 15.0 %
Corporate Overhead (1.6 %) (1.4 %)
Total 13.3 % 13.6 %



1


Merger and acquisition-related charges relate primarily to integration and consulting costs, as well as employee-related matters.

YEAR TO DATE 2013
Reported
Merger &
Acquisition-
Related
Charges2
Normalized3
SEGMENT PROFIT

Construction & DIY $ 777.1 $ 13.0 $ 790.1
Industrial 456.7 24.8 481.5
Security 233.3 38.0 271.3
Segment Profit 1,467.1 75.8 1,542.9
Corporate Overhead (254.0 ) 89.4 (164.6 )
Total $ 1,213.1 $ 165.2 $ 1,378.3


Segment Profit as a Percentage of Net Sales
Construction & DIY 14.7 % 15.0 %
Industrial 13.8 % 14.6 %
Security 10.1 % 11.7 %
Segment Profit 13.5 % 14.2 %
Corporate Overhead (2.3 %) (1.5 %)
Total 11.1 % 12.7 %



2



Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility
closure-related charges, employee-related charges and integration costs.


3



The normalized 2014 and 2013 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the
Company's segment profit results aside from the material impact of the merger and acquisition-related charges.







Contact:

Stanley Black & Decker
Greg Waybright, 860-827-3833
Vice President, Investor & Government Relations
greg.waybright@sbdinc.com
👍️0
Drmicrocap Drmicrocap 10 years ago

Stanley Black & Decker Reports 3Q 2014 Results



Stanley Black & Decker October 22, 2014 6:00 AM






NEW BRITAIN, Conn.--(BUSINESS WIRE)--

Stanley Black & Decker ( SWK) today announced third quarter 2014 financial results.

3Q’14 Revenues Up 5% To $2.9 Billion; Organic Growth Of 6% Operating Margin Expanded 230 Basis Points To 13.8%; Excluding Charges, Operating Margin Expanded 120 Basis Points To 14.1% 3Q’14 Diluted GAAP EPS Was $1.50; Excluding Charges, 3Q’14 Diluted EPS Was $1.55 CDIY Achieved 10% Organic Growth; Record Operating Margin Of 16.5%, Excluding Charges Increasing 2014 Full Year Free Cash Flow Guidance To Approximately $800 Million From At Least $675 Million Reiterating Mid-Point While Tightening 2014 Full Year EPS Guidance Range Of $5.40 To $5.46 On A GAAP Basis ($5.52 To $5.58, Excluding Charges) 3Q’14 Key Points:

Net sales for the period were $2.9 billion, up 5% versus the prior year, primarily attributable to volume (+5%) and price (+1%), partially offset by currency (-1%). The gross margin rate for the quarter was 36.2%. Excluding charges the gross margin rate was also 36.2%, up 20 basis points from the prior year rate of 36.0%, as favorable volume, price, productivity and cost actions more than offset unfavorable currency and lower Security margins. SG&A expenses were 22.4% of sales. Excluding charges, SG&A expenses were 22.1% of sales, compared to 23.1% in 3Q’13. Operating margin rate was 13.8%. Excluding charges, operating margin rate was 14.1%, up 120 basis points from 3Q’13, as actions taken to improve profitability and generate operating leverage more than offset slightly higher than expected unfavorable currency. The tax rate was 19.1%. Excluding charges, the tax rate was 18.8% due to a larger portion of earnings in lower taxed jurisdictions and changes in required foreign tax reserves due to statute expirations. Working capital turns for the quarter were 6.4, up 0.5 turns from 3Q’13. Free cash flow for the quarter was $189 million, a $178 million increase over 3Q’13. Stanley Black & Decker’s Chairman and CEO, John F. Lundgren, commented, “Our strong third quarter results demonstrate the benefits of our focus on driving organic growth, margin expansion and operating leverage through new product vitality accompanied by diligent price and cost management. These efforts have allowed us to maintain operating momentum while overcoming persistent challenges relating to currency and a volatile macro backdrop, particularly within emerging markets. During the quarter, our CDIY and Industrial businesses posted impressive top and bottom line results, and Security continued to make progress on its multi-year business transformation. Strong underlying growth, earnings and cash flow momentum position us well for the future.”

3Q’14 Segment Results



($ in M) 3Q' 14 Segment Results
Sales Profit Charges1

Profit
Ex-
Charges1



Profit Rate Profit Rate
Ex-
Charges1





CDIY $1,454 $239.7 $0.1 $239.8 16.5% 16.5%

Industrial $866 $136.2 $1.2 $137.4 15.7% 15.9%

Security $582 $63.9 $0.3 $64.2 11.0% 11.0%
1 See Merger And Acquisition (M&A) One-Time Charges On Page 5

CDIY net sales increased 9% versus 3Q’13 as a result of volume (+9%) and price (+1%), partially offset by currency (-1%). Organic growth in North America (+12%) recovered from a second quarter negatively impacted by poor weather while Europe continued its momentum, growing 11% organically. North American volume benefitted from strong underlying tool demand driven by new products as well as expanded retail offerings and partnerships. In addition, outdoor product volume was stronger than expected as some of the volume lost in the second quarter due to cold weather was recovered this quarter. Europe maintained its strong quarterly organic growth momentum attributable to continued market share gains from new product introductions and an expanded retail footprint. Organic growth within the emerging markets was up 2% as Latin America, Russia and Turkey, among others, remain challenged. Excluding charges, overall segment profit rate was a record 16.5%, up from the 3Q’13 rate of 15.1%, as volume leverage, price, productivity and cost management more than offset currency pressures. Industrial net sales increased 5% versus 3Q’13 as a result of volume (+4%) and price (+1%). Organic sales for the Industrial and Automotive Repair (“IAR”) business were up 7% with strength in both North America and Europe. Engineered Fastening achieved 5% organic growth driven primarily by strong global automotive revenues in excess of global light vehicle production. Infrastructure organic growth was down 1% as solid hydraulic tools growth was offset by the expected slowdown in on-shore oil & gas activity and project delays due to the geopolitical situations in Russia, Ukraine and the Middle East. Overall Industrial segment profit rate excluding charges was 15.9%, up 170 basis points from the 3Q’13 rate of 14.2% reflecting favorable volume leverage, productivity gains, and cost control, partially offset by currency. Security net sales decreased 3% versus 3Q’13 as lower volume (-3%) and currency (-1%) were partially offset by price (+1%). Organic growth within North America and emerging markets (“NA & EM”) increased 1% as commercial electronics and automatic doors provided uplift. Europe declined 7% organically due to continued lower installation and recurring revenues in various regions, most notably Southern Europe. Europe order rates were up high single digits for the quarter and attrition levels improved sequentially remaining within the target range of 10%-12%. Security segment profit rate excluding charges was 11.0%, consistent with the 2Q’14 rate and down 120 basis points from the 3Q’13 rate of 12.2%. The year-over-year decrease in the rate resulted from volume deleveraging and lower recurring revenue mix in Europe as well as project mix within North America. Southern Europe’s results adversely impacted the year over year rate decline for the overall Security segment by approximately 70 basis points.

President and Chief Operating Officer, James M. Loree, commented, “We again posted a solid quarter of organic growth and margin expansion along with strong cash flow. CDIY organic growth accelerated in the third quarter, contributing to record operating margin, and Industrial posted strong results as a result of robust sales and operating leverage in Engineered Fastening and IAR. Company-wide, emerging markets growth was positive for the quarter despite a choppy and slowing environment. Our mid-price point product launches position us for continued share gain in these somewhat slower markets.

“There were encouraging signs with respect to the Security business. Europe’s OM and order growth rates increased sequentially despite the ongoing challenges present in Southern Europe, while the momentum in CSS North America’s Vertical Solutions continued to grow. To ensure on-going progress, we expect to complete our review of the strategic alternatives for Southern Europe during 4Q’14 while implementing selected leadership adjustments within NA and EM to tighten execution and facilitate the global rollout of the Vertical Solutions.”

Updated 2014 Outlook And Initial 2015 Commentary

Donald Allan Jr., Senior Vice President and CFO, commented, “We are reiterating the mid-point while tightening our previously communicated 2014 EPS outlook range to $5.52 - $5.58 on an adjusted basis or $5.40 - $5.46 on a GAAP basis. The mid-point of our full year EPS outlook remains unchanged as we expect the stronger than expected operational performance including our continued focus on indirect cost control and price management to offset the unfavorable impact of the current challenging macro environment, which is causing further currency pressure. We now estimate the full year currency impact to be approximately $75 million, up from our prior estimate of $60 million. In addition, we are raising our 2014 free cash flow estimate to approximately $800 million from the prior estimate of at least $675 million as we expect lower one-time restructuring payments, solid working capital performance, and slightly lower levels of capital expenditures.

“While it is premature to provide detail guidance for 2015 at this time, the continued strengthening of the U.S. dollar and slowing emerging market economic growth is a known headwind of approximately $50 - $75 million to 2015 operating margin growth. However, we have a demonstrated track record of responding to these types of currency and macro economic pressures with surgical cost reduction actions. In this regard, we are currently considering several initiatives which would largely, if not completely, offset these headwinds. Such actions, if taken, would likely require additional restructuring charges of $10 - $25 million in excess of our current 2014 estimate of $25 million.”

The Company remains committed to its capital allocation plan of modest debt deleveraging in 2014, returning up to $1 billion of capital to shareholders through 2015, and supporting a strong and growing dividend. These actions combined with near-term operational improvements are expected to improve cash flow return on investment by approximately 250 basis points through 2015.

Merger And Acquisition (M&A) One-Time Charges

Total one-time charges in 3Q’14 of $8.4 million (net of a $0.2 million restructuring credit) primarily relate to integration and consulting costs. Gross margin includes $0.1 million of these one-time charges while SG&A includes $8.1 million. $1.6 million of these costs that impact the Company’s operating margin are included in segment results, with the remainder in corporate overhead. Also included in one-time charges are $0.4 million in Other, net.

The Company will host a conference call with investors today, Wednesday, October 22, at 8:00am ET. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.

You can also access the slides via the Stanley Black & Decker Investor Relations iPad & iPhone app from the Apple App Store by searching for “SWK Investor Relations”.

The call will be accessible by telephone at 1 (800) 708-4540, from outside the U.S. at +1 (847) 619-6397, and via the Internet at www.stanleyblackanddecker.com. To participate, please register on the web site at least fifteen minutes prior to the call and download and install any necessary audio software. Please use the conference identification number 3821-2772. A replay will also be available two hours after the call and can be accessed at 1 (888) 843-7419 or +1 (630) 652-3042 using the passcode 3821-2772#. The replay will also be available as a podcast within 24 hours and can be accessed on our website and via iTunes.

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.

These results reflect the Company’s continuing operations. In 3Q’13, the Company classified two small businesses within the Security and Industrial segments as held for sale based on management's intention to sell these businesses. The business within the Industrial segment was sold in February 2014. The operating results of the business within the Industrial segment, including the loss on sale, have been reported as discontinued operations for 3Q’13. The operating results of the business within the Security segment have been reported as discontinued operations for 3Q’14 and 3Q’13. Total sales reported as discontinued operations were $5.2 million and $8.9 million for 3Q’14 and 3Q’13, respectively.

The Company recast 2013 segment net sales and profit between the CDIY and Industrial segments to align reporting with the current management of the Company’s operations in the emerging markets to be comparable with the current year presentation. There is no impact to the consolidated financial statements of the Company as a result of this segment realignment.

Organic sales growth is defined as total sales growth less the sales of companies acquired in the past twelve months and any foreign currency impacts. Operating margin is defined as sales less cost of sales and selling, general and administrative expenses. Management uses operating margin and its percentage of net sales as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. The normalized statement of operations and business segment information, as reconciled to GAAP on pages 12 to 15 for 2014 and 2013, are considered relevant to aid analysis of the Company’s operating performance and earnings results aside from the material impact of the one-time charges and payments associated with the Black & Decker merger, the Niscayah and Infastech acquisitions and other smaller acquisitions of the Company. Normalized free cash flow, as reconciled from the associated GAAP measures on page 10 for 2014 and 2013 is considered a meaningful pro forma metric to aid the understanding of the Company’s cash flow performance aside from the material impact of the M&A-related payments and charges.

CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are not historical, including but not limited to those regarding the Company’s ability to: (i) achieve full year 2014 diluted EPS of $5.52 - $5.58 ($5.40 - $5.46 on a GAAP basis); (ii) generate approximately $800 million of free cash flow for 2014 ; (iii) return up to $1 billion of capital to shareholders through 2015 and deliver a strong and growing dividend; and (iv) improve our cash flow return on investment by 250 basis points through 2015 (collectively, the “Results”); are “forward looking statements” and subject to risk and uncertainty.

The Company’s ability to deliver the Results as described above is based on current expectations and involves inherent risks and uncertainties, including factors listed below and other factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations. In addition to the risks, uncertainties and other factors discussed in this press release, the risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied in the forward looking statements include, without limitation, those set forth under Item 1A Risk Factors of the Company’s Annual Report on Form 10-K and any material changes thereto set forth in any subsequent Quarterly Reports on Form 10-Q, or those contained in the Company’s other filings with the Securities and Exchange Commission, and those set forth below.

The Company’s ability to deliver the Results is dependent, or based, upon: (i) the Company’s ability to execute its integration plans and achieve synergies primarily from the Infastech acquisition sufficient to generate $0.10 of EPS accretion in 2014; (ii) the Company’s ability to generate organic net sales increases of approximately 3-4% in 2014; (iii) the Company’s ability to continue to identify and execute upon sales opportunities to increase its CDIY, IAR and Security businesses in the emerging markets while minimizing associated costs; (iv) the Company’s ability to achieve a tax rate of approximately 21% in 2014; (v) the Company’s ability to hold margins in the Security business to a modest decrease for 2014; (vi) the Company’s ability to execute cost reduction actions and control indirect expenses; (vii) the Company’s ability to limit one-time restructuring charges to $25 million in 2014; (viii) full year 2014 operating margin currency impact of approximately $75 million; (ix) successful integration of acquisitions completed in 2012 and 2013, and any additional acquisitions completed during the year, as well as integration of existing businesses; (x) the continued acceptance of technologies used in the Company’s products and services; (xi) the Company’s ability to manage existing Sonitrol franchisee and Mac Tools relationships; (xii) the Company’s ability to minimize costs associated with any sale or discontinuance of a business or product line, including any severance, restructuring, legal or other costs; (xiii) the proceeds realized with respect to any business or product line disposals; (xiv) the extent of any asset impairments with respect to any businesses or product lines that are sold or discontinued; (xv) the success of the Company’s efforts to manage freight costs, steel and other commodity costs as well as capital expenditures; (xvi) the Company’s ability to sustain or increase prices in order to, among other things, offset or mitigate the impact of steel, freight, energy, non-ferrous commodity and other commodity costs and any inflation increases and/or currency impacts; (xvii) the Company’s ability to generate free cash flow and maintain a strong debt to capital ratio; (xviii) the Company’s ability to identify and effectively execute productivity improvements and cost reductions, while minimizing any associated restructuring charges; (xix) the Company’s ability to obtain favorable settlement of tax audits; (xx) the ability of the Company to generate earnings sufficient to realize future income tax benefits during periods when temporary differences become deductible; (xxi) the continued ability of the Company to access credit markets under satisfactory terms; (xxii) the Company’s ability to negotiate satisfactory price and payment terms under which the Company buys and sells goods, services, materials and products; (xxiii) the Company’s ability to successfully develop, market and achieve sales from new products and services; and (xxiv) the availability of cash to repurchase shares when conditions are right.

The Company’s ability to deliver the Results is also dependent upon: (i) the success of the Company’s marketing and sales efforts, including the ability to develop and market new and innovative products at the right price points in both existing and new markets; (ii) the ability of the Company to maintain or improve production rates in the Company’s manufacturing facilities, respond to significant changes in product demand and fulfill demand for new and existing products; (iii) the Company’s ability to continue improvements in working capital through effective management of accounts receivable and inventory levels; (iv) the ability to continue successfully managing and defending claims and litigation; (v) the success of the Company’s efforts to mitigate any adverse earnings impact resulting from increases generated by, for example, increases in the cost of energy or significant Chinese Renminbi or other currency fluctuations; (vi) the geographic distribution of the Company’s earnings; (vii) the commitment to and success of the Stanley Fulfillment System; and (viii) successful implementation with expected results of cost reduction programs.

The Company’s ability to achieve the Results will also be affected by external factors. These external factors include: challenging global geopolitical and macroeconomic environment; the economic environment of emerging markets, particularly Latin America, Russia and Turkey; pricing pressure and other changes within competitive markets; the continued consolidation of customers particularly in consumer channels; inventory management pressures on the Company’s customers; the impact the tightened credit markets may have on the Company or its customers or suppliers; the extent to which the Company has to write off accounts receivable or assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; increasing competition; changes in laws, regulations and policies that affect the Company, including, but not limited to trade, monetary, tax and fiscal policies and laws; the timing and extent of any inflation or deflation; the impact of poor weather conditions on sales; currency exchange fluctuations; the impact of dollar/foreign currency exchange and interest rates on the competitiveness of products and the Company’s debt program; the strength of the U.S. and European economies; the extent to which world-wide markets associated with homebuilding and remodeling stabilize and rebound; the impact of events that cause or may cause disruption in the Company’s supply, manufacturing, distribution and sales networks such as war, terrorist activities, and political unrest; and recessionary or expansive trends in the economies of the world in which the Company operates. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)


THIRD QUARTER YEAR TO DATE
2014 2013 2014 2013

NET SALES $ 2,902.2 $ 2,758.3 $ 8,427.2 $ 8,091.7

COSTS AND EXPENSES
Cost of sales 1,852.1 1,770.7 5,363.6 5,189.9
Gross margin 1,050.1 987.6 3,063.6 2,901.8
% of Net Sales 36.2 % 35.8 % 36.4 % 35.9 %

Selling, general and administrative 650.2 669.6 1,960.8 2,011.5
% of Net Sales 22.4 % 24.3 % 23.3 % 24.9 %

Operating margin 399.9 318.0 1,102.8 890.3
% of Net Sales 13.8 % 11.5 % 13.1 % 11.0 %

Other - net 61.8 66.6 182.0 208.8
Restructuring (credits) charges (0.2 ) 28.5 (5.6 ) 40.6
Income from operations 338.3 222.9 926.4 640.9

Interest - net 40.4 36.1 121.6 109.1

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 297.9 186.8 804.8 531.8
Income taxes on continuing operations 56.8 17.3 177.3 80.3
NET EARNINGS FROM CONTINUING OPERATIONS 241.1 169.5 627.5 451.5

Less: net (loss) earnings attributable to non-controlling interests (0.3 ) (0.3 ) 0.8 (0.9 )

NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE
TO COMMON SHAREOWNERS 241.4 169.8 626.7 452.4

NET LOSS FROM DISCONTINUED OPERATIONS (4.7 ) (3.8 ) (11.6 ) (18.2 )

NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS $ 236.7 $ 166.0 $ 615.1 $ 434.2


BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Continuing operations $ 1.54 $ 1.10 $ 4.01 $ 2.91
Discontinued operations (0.03 ) (0.02 ) (0.07 ) (0.12 )
Total basic earnings per share of common stock $ 1.51 $ 1.07 $ 3.94 $ 2.80

DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Continuing operations $ 1.50 $ 1.07 $ 3.92 $ 2.85
Discontinued operations (0.03 ) (0.02 ) (0.07 ) (0.11 )
Total diluted earnings per share of common stock $ 1.47 $ 1.04 $ 3.85 $ 2.74

DIVIDENDS PER SHARE $ 0.52 $ 0.50 $ 1.52 $ 1.48

AVERAGE SHARES OUTSTANDING (in thousands)
Basic 156,628 155,043 156,278 155,140
Diluted 160,582 158,925 159,755 158,717



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)

September 27, December 28,
2014 2013

ASSETS
Cash and cash equivalents $ 486.8 $ 496.2
Accounts and notes receivable, net 1,861.1 1,633.0
Inventories, net 1,758.0 1,485.2
Assets held for sale 4.7 10.1
Other current assets 341.5 344.2
Total current assets 4,452.1 3,968.7
Property, plant and equipment, net 1,448.1 1,485.3
Goodwill and other intangibles, net 10,355.9 10,632.9
Other assets 477.7 448.2
Total assets $ 16,733.8 $ 16,535.1


LIABILITIES AND SHAREOWNERS' EQUITY
Short-term borrowings $ 432.7 $ 402.6
Accounts payable 1,713.5 1,575.9
Accrued expenses 1,236.4 1,236.2
Liabilities held for sale 4.7 6.3
Total current liabilities 3,387.3 3,221.0
Long-term debt 3,856.8 3,799.4
Other long-term liabilities 2,445.7 2,634.2
Stanley Black & Decker, Inc. shareowners' equity 6,960.8 6,799.2
Non-controlling interests' equity 83.2 81.3
Total liabilities and equity $ 16,733.8 $ 16,535.1



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)

THIRD QUARTER YEAR TO DATE

2014 2013 2014 2013
OPERATING ACTIVITIES
Net earnings from continuing operations $ 241.1 $ 169.5 $ 627.5 $ 451.5
Net loss from discontinued operations (4.7 ) (3.8 ) (11.6 ) (18.2 )
Depreciation and amortization 112.6 108.8 337.4 322.7
Changes in working capital1 (168.6 ) (244.2 ) (443.0 ) (371.6 )
Other 68.7 69.3 24.0 (248.1 )
Net cash provided by operating activities 249.1 99.6 534.3 136.3


INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures (60.2 ) (88.7 ) (179.4 ) (245.3 )
Proceeds from sale of business / assets 5.8 1.0 12.8 96.5
Acquisitions, net of cash acquired - (16.7 ) (3.2 ) (926.6 )
Proceeds from issuances of common stock 23.4 32.3 51.0 138.7
Net short-term (repayments) borrowings (48.8 ) (70.9 ) 33.8 1,199.5
Net investment hedge settlements (29.2 ) 5.3 (65.0 ) 7.0
Cash dividends on common stock (81.4 ) (77.5 ) (240.5 ) (235.0 )
Purchases of common stock for treasury (1.3 ) (7.8 ) (20.7 ) (32.6 )
Payment on forward share purchase contract - - - (350.0 )
Other (86.3 ) 30.8 (132.5 ) (35.4 )
Net cash used in investing and financing activities (278.0 ) (192.2 ) (543.7 ) (383.2 )

Decrease in Cash and Cash Equivalents (28.9 ) (92.6 ) (9.4 ) (246.9 )

Cash and Cash Equivalents, Beginning of Period 515.7 561.7 496.2 716.0

Cash and Cash Equivalents, End of Period $ 486.8 $ 469.1 $ 486.8 $ 469.1


Free Cash Flow Computation2


Operating cash inflow $ 249.1 $ 99.6 $ 534.3 $ 136.3
Less: capital and software expenditures (60.2 ) (88.7 ) (179.4 ) (245.3 )
Free cash inflow (outflow) (before dividends) $ 188.9 $ 10.9 $ 354.9 $ (109.0 )
Merger & Acquisition-related charges and payments4 29.5 65.6 116.1 282.3
Free cash inflow, normalized (before dividends)3 $ 218.4 $ 76.5 $ 471.0 $ 173.3



1 The change in working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.

2,3 Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. Normalized free cash flow, as reconciled above, is considered a meaningful pro forma metric to aid the understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities.

4 Merger & Acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)


THIRD QUARTER YEAR TO DATE

2014 2013 2014 2013
NET SALES
Construction & DIY $ 1,453.5 $ 1,332.0 $ 4,062.9 $ 3,874.0
Industrial 866.2 825.9 2,607.4 2,421.3
Security 582.5 600.4 1,756.9 1,796.4
Total $ 2,902.2 $ 2,758.3 $ 8,427.2 $ 8,091.7


SEGMENT PROFIT
Construction & DIY $ 239.7 $ 198.4 $ 627.0 $ 574.3
Industrial 136.2 114.6 416.8 321.6
Security 63.9 61.4 180.5 173.5
Segment Profit 439.8 374.4 1,224.3 1,069.4
Corporate Overhead (39.9 ) (56.4 ) (121.5 ) (179.1 )
Total $ 399.9 $ 318.0 $ 1,102.8 $ 890.3


Segment Profit as a Percentage of Net Sales
Construction & DIY 16.5 % 14.9 % 15.4 % 14.8 %
Industrial 15.7 % 13.9 % 16.0 % 13.3 %
Security 11.0 % 10.2 % 10.3 % 9.7 %
Segment Profit 15.2 % 13.6 % 14.5 % 13.2 %
Corporate Overhead (1.4 %) (2.0 %) (1.4 %) (2.2 %)
Total 13.8 % 11.5 % 13.1 % 11.0 %



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

THIRD QUARTER 2014
Reported Merger &
Acquisition-
Related
Charges1

Normalized3

Gross margin $ 1,050.1 $ 0.1 $ 1,050.2
% of Net Sales 36.2 % 36.2 %

Selling, general and administrative 650.2 (8.1 ) $ 642.1
% of Net Sales 22.4 % 22.1 %

Operating margin 399.9 8.2 408.1
% of Net Sales 13.8 % 14.1 %

Earnings from continuing operations before income taxes 297.9 8.4 306.3

Income taxes on continuing operations 56.8 0.7 57.5

Net earnings from continuing operations 241.4 7.7 249.1

Diluted earnings per share of common stock $ 1.50 $ 0.05 $ 1.55



1 Merger and acquisition-related charges relate primarily to integration and consulting costs.



THIRD QUARTER 2013
Reported Merger &
Acquisition
-Related and
Other
Charges2

Normalized3

Gross margin $ 987.6 $ 5.3 $ 992.9
% of Net Sales 35.8 % 36.0 %

Selling, general and administrative 669.6 (31.9 ) 637.7
% of Net Sales 24.3 % 23.1 %

Operating margin 318.0 37.2 355.2
% of Net Sales 11.5 % 12.9 %

Earnings from continuing operations before income taxes 186.8 67.2 254.0

Income taxes on continuing operations 17.3 16.0 33.3

Net earnings from continuing operations 169.8 51.3 221.1

Diluted earnings per share of common stock $ 1.07 $ 0.32 $ 1.39



2 Merger and acquisition-related and other charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.
3 The normalized 2014 and 2013 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related and other charges.



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

YEAR TO DATE 2014
Reported Merger &
Acquisition-
Related
Charges1

Normalized3

Gross margin $ 3,063.6 $ 1.5 $ 3,065.1
% of Net Sales 36.4 % 36.4 %

Selling, general and administrative 1,960.8 (19.7 ) 1,941.1
% of Net Sales 23.3 % 23.0 %

Operating margin 1,102.8 21.2 1,124.0
% of Net Sales 13.1 % 13.3 %

Earnings from continuing operations before income taxes 804.8 16.4 821.2

Income taxes on continuing operations 177.3 (3.2 ) 174.1

Net earnings from continuing operations 626.7 19.6 646.3

Diluted earnings per share of common stock $ 3.92 $ 0.13 $ 4.05



1 Merger and acquisition-related charges relate primarily to integration and consulting costs, as well as employee-related matters.



YEAR TO DATE 2013
Reported Merger &
Acquisition-
Related and
Other
Charges2

Normalized3

Gross margin $ 2,901.8 $ 26.4 $ 2,928.2
% of Net Sales 35.9 % 36.2 %

Selling, general and administrative 2,011.5 (90.3 ) 1,921.2
% of Net Sales 24.9 % 23.7 %

Operating margin 890.3 116.7 1,007.0
% of Net Sales 11.0 % 12.4 %

Earnings from continuing operations before income taxes 531.8 178.6 710.4

Income taxes on continuing operations 80.3 50.0 130.3

Net earnings from continuing operations 452.4 128.6 581.0

Diluted earnings per share of common stock $ 2.85 $ 0.81 $ 3.66



2 Merger and acquisition-related and other charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs, as well as a restructuring reversal due to the termination of a previously approved restructuring action.
3 The normalized 2014 and 2013 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related and other charges.



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)

THIRD QUARTER 2014
Reported Merger &
Acquisition-
Related
Charges1

Normalized3

SEGMENT PROFIT

Construction & DIY $ 239.7 $ 0.1 $ 239.8
Industrial 136.2 1.2 137.4
Security 63.9 0.3 64.2
Segment Profit 439.8 1.6 441.4
Corporate Overhead (39.9 ) 6.6 (33.3 )
Total $ 399.9 $ 8.2 $ 408.1


Segment Profit as a Percentage of Net Sales
Construction & DIY 16.5 % 16.5 %
Industrial 15.7 % 15.9 %
Security 11.0 % 11.0 %
Segment Profit 15.2 % 15.2 %
Corporate Overhead (1.4 %) (1.1 %)
Total 13.8 % 14.1 %



1 Merger and acquisition-related charges relate primarily to integration and consulting costs.



THIRD QUARTER 2013
Reported Merger &
Acquisition-
Related
Charges2

Normalized3

SEGMENT PROFIT

Construction & DIY $ 198.4 $ 3.1 $ 201.5
Industrial 114.6 2.3 116.9
Security 61.4 11.9 73.3
Segment Profit 374.4 17.3 391.7
Corporate Overhead (56.4 ) 19.9 (36.5 )
Total $ 318.0 $ 37.2 $ 355.2


Segment Profit as a Percentage of Net Sales
Construction & DIY 14.9 % 15.1 %
Industrial 13.9 % 14.2 %
Security 10.2 % 12.2 %
Segment Profit 13.6 % 14.2 %
Corporate Overhead (2.0 %) (1.3 %)
Total 11.5 % 12.9 %



2 Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.
3 The normalized 2014 and 2013 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company's segment profit results aside from the material impact of the merger and acquisition-related charges.



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)

YEAR TO DATE 2014
Reported Merger &
Acquisition-
Related
Charges1

Normalized3

SEGMENT PROFIT

Construction & DIY $ 627.0 $ 0.7 $ 627.7
Industrial 416.8 4.6 421.4
Security 180.5 3.8 184.3
Segment Profit 1,224.3 9.1 1,233.4
Corporate Overhead (121.5 ) 12.1 (109.4 )
Total $ 1,102.8 $ 21.2 $ 1,124.0


Segment Profit as a Percentage of Net Sales
Construction & DIY 15.4 % 15.4 %
Industrial 16.0 % 16.2 %
Security 10.3 % 10.5 %
Segment Profit 14.5 % 14.6 %
Corporate Overhead (1.4 %) (1.3 %)
Total 13.1 % 13.3 %



1 Merger and acquisition-related charges relate primarily to integration and consulting costs, as well as employee-related matters.



YEAR TO DATE 2013
Reported Merger &
Acquisition-
Related
Charges2

Normalized3

SEGMENT PROFIT

Construction & DIY $ 574.3 $ 9.2 $ 583.5
Industrial 321.6 20.8 342.4
Security 173.5 27.1 200.6
Segment Profit 1,069.4 57.1 1,126.5
Corporate Overhead (179.1 ) 59.6 (119.5 )
Total $ 890.3 $ 116.7 $ 1,007.0


Segment Profit as a Percentage of Net Sales
Construction & DIY 14.8 % 15.1 %
Industrial 13.3 % 14.1 %
Security 9.7 % 11.2 %
Segment Profit 13.2 % 13.9 %
Corporate Overhead (2.2 %) (1.5 %)
Total 11.0 % 12.4 %



2 Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.
3 The normalized 2014 and 2013 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company's segment profit results aside from the material impact of the merger and acquisition-related charges.



Company EarningsFinance
Contact:
Contact:
Stanley Black & Decker
Greg Waybright, (860) 827-3833
Vice President, Investor & Government Relations
greg.waybright@sbdinc.com






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Drmicrocap Drmicrocap 10 years ago
Stanley Black & Decker Reports 4Q and Full Year 2013 Results
Business Wire Stanley Black & Decker
15 hours ago
NEW BRITAIN, Conn.--(BUSINESS WIRE)--

Stanley Black & Decker ( SWK ) today announced fourth quarter and full year 2013 financial results.

4Q13 Revenues Increased 9% To $2.9 Billion; Organic Growth Reached 4% As Organic Growth Initiatives Contributed 2 Points
4Q13 Diluted GAAP EPS Was $0.41; Excluding Charges, 4Q13 Diluted EPS Was $1.32
Full Year Revenues Increased 8% To $11.0 Billion; Organic Growth Was 3%
Full Year Diluted GAAP EPS Was $3.26; Excluding Charges, Full Year Diluted EPS Was $4.98
Full Year 2013 Free Cash Flow Of $502 Million; $854 Million Excluding Charges & Payments; Working Capital Turns Reached 8.0
4Q13 Key Points:

Net sales were $2.9 billion, up 9% versus prior year, attributable to volume (+4%) and acquisitions (+6%), partially offset by currency (-1%); price was flat for the quarter.
The gross margin rate for the quarter was 35.5%. Excluding charges, the gross margin rate was 35.6%, down slightly from the prior year rate of 36.0%, as the favorable impact of volume, productivity and cost synergies was more than offset by emerging market currency pressures and lower Security margins.
SG&A expenses were 24.2% of sales. Excluding charges, SG&A expenses were 22.6% of sales, relatively unchanged from the 4Q12 level of 22.5%.
Operating margin was 11.3% of sales. Excluding charges, operating margin was 13.0% of sales, down 50 basis points from prior year.
The tax rate was a benefit of 20.6%. Excluding charges, the rate was 22.1%, in line with expectations.
Working capital turns for the quarter were 8.0, up 0.4 turns from 4Q12. Free cash flow was $698 million, excluding $69 million of charges and payments.
Stanley Black & Deckers Chairman and CEO, John F. Lundgren, commented, During 2013 we made significant progress driving organic growth throughout the organization and the fourth quarter was no exception as the momentum continued from our organic growth initiatives. CDIY and Industrial delivered strong top and bottom line growth in spite of FX headwinds and on-going challenging global market conditions. The Security segments margin recovery is underway with notable improvement in North America and actions to improve Europes margins in place.

As we move into 2014 it is important to note that our long-term strategy and financial objectives remain intact. We are, however, focused on executing previously announced operating and capital allocation actions to boost returns in the near term. These actions demonstrate our commitment to drive sustainable improvements to the Companys cash flow return on investment and drive shareholder value.

4Q13 Segment Results

($ in M) 4Q' 13 Segment Results
Sales Profit Charges 1
Profit
Ex-
Charges 1

Profit
Rate

Profit Rate
Ex-
Charges 1

CDIY $1,456 $209.2 $3.8 $213.0 14.4% 14.6%

Industrial $824 $128.7 $4.0 $132.7 15.6% 16.1%

Security $626 $64.5 $11.6 $76.1 10.3% 12.2%
1 M&A charges primarily pertaining to synergy attainment & facility closures

CDIY segment net sales increased 6% vs. 4Q12 as a result of volume (+7%) and acquisitions (+1%), partially offset by price (-1%) and currency (-1%). Solid organic growth was experienced in all regions led by emerging markets and Europe. European volumes were strong, up 7% with growth in nearly all key countries driven by customer share gains and new product introductions. Emerging markets also grew 8% in the face of difficult market dynamics within certain regions, particularly Latin America. Similar to the prior quarter, solid organic volumes were achieved in North America, up 5%, primarily due to new product introductions, retail promotions and continued strength in the residential construction market. Excluding charges, overall segment profit was 14.6% up 10 bps from the 4Q12 rate of 14.5% as volume and productivity offset investments in organic growth initiatives and currency.
Industrial segment net sales rose 27%. Unit volumes increased approximately 8%, currency was down 1% and acquisitions added 20%. Pricing was flat for the quarter. Organic sales for Industrial and Automotive Repair (IAR) increased a robust 5% primarily as a result of volume increases in North America and Europe. Consistent with prior quarters, volume growth in North America continued to be driven by the MRO vending organic growth initiative and strength within Mac Tools mobile distribution, as well as new product introductions, which more than offset the impact of budgetary cuts on IARs US Government business. European growth was driven primarily by the timing of promotional events. Engineered Fastening posted record fourth quarter revenues for its legacy Emhart business. Organic growth was 5% driven by the global automotive revenues which once again outpaced global light vehicle production. In addition, Infastech continues to progress as planned and is on track to deliver financial commitments. Oil & Gas posted another strong quarter of impressive organic growth (+39%) driven primarily by a continued rebound by North America onshore operations combined with another strong offshore growth performance.
Overall Industrial segment profit excluding charges was 16.1%, consistent with the 4Q12 rate, as the impact of volume and productivity was offset by organic growth investments and currency.

As expected, net sales in Security decreased 2% versus 4Q12 due to volume (-4%) partially offset by price (+1%) and currency (+1%). Organic growth within the CSS North America business was relatively flat. CSS Europe declined 8% organically due primarily to continued softness in certain regions, most notably France and Southern Europe. While CSS Europe order rates remain strong in the low double digits, the conversion of backlog in the quarter did not overcome the attrition rates that remained consistent with the third quarter.
Mechanical Access organic sales were down slightly driven by declines within the commercial mechanical lock business due to the year over year impact of the distributor model transition, partially offset by growth within the automatic door business due to successful door conversion wins, new product introductions and emerging market growth.

Security segment profit rate excluding charges was 12.2%, consistent with the 3Q13 rate. During the quarter, the North America profit rate improved sequentially as a result of CSS operational field productivity. This improvement was offset by continued attrition and field inefficiencies in the Security Europe business. The 400 basis point year over year decline was attributable to the confluence of issues which have been previously communicated. The fourth quarter should represent the last quarter with steep year over year margin rate declines as the fixes take hold and the issues anniversary.

President and Chief Operating Officer, James M. Loree, commented, We remain encouraged by the strong results of CDIY and our Industrial businesses, which have leveraged the growth investments made to date. Growth in these businesses within the developed markets of North America and Europe was exceptional. Organic growth achieved within the emerging markets in the quarter and for the full year was also noteworthy given difficult and volatile regional market conditions and related currency pressures which continue to mount particularly within Latin America. As for Security, we continue to execute the actions we previously communicated to improve revenues and operating margins in both North America and Europe.

As we look forward in 2014, we have strong momentum in about 80% of the portfolio. In Security, the remaining 20%, we have taken cost and other actions to effect a turnaround. We have already seen benefits in Security North America and Europe will gradually improve throughout the year.

Reiteration Of 2014 Outlook

Donald Allan Jr., Senior Vice President and CFO commented, As previously communicated in mid-December our adjusted 2014 EPS will be in the range of $5.30 to $5.50. On a GAAP basis EPS is estimated to be in the range of $5.18 to $5.38 as M&A charges will shrink dramatically in 2014 resulting in convergence of GAAP and adjusted income. We also believe that our 2014 organic growth will approximate 4% including the benefits from our organic growth initiatives. Our 2014 outlook assumes that we will improve Security margins by approximately 150 basis points and that we experience no further significant degradation in currencies beyond current rates. Free cash flow will approximate $675 million inclusive of approximately $250 million of one-time payments primarily relating to restructuring actions.

In addition to continuing to drive organic growth and improving security margins, enhancing our operating leverage is a key priority for 2014. The financial drag from the growth investments made in 2013 is mostly behind us and we will tightly manage SG&A expenses. We also remain committed to our capital allocation plan which provides for a strong and growing dividend as well as the return of $1.5 billion to $2.0 billion of capital to stakeholders over the next two years through debt deleveraging and repurchasing up to $1 billion in stock. The combined impact of these actions is expected to have a significant favorable impact on the Companys cash flow return on investment over the next couple of years.

Merger And Acquisition (M&A) One-Time Charges

4Q13: Total one-time charges in 4Q13 related to M&A charges and cost containment actions, as well as the charges related to the extinguishment of debt were $214.9 million. Gross margin includes $3.1 million of these one-time charges, primarily for integration-related matters, and SG&A includes $46.0 million in one-time charges, primarily for integration-related administration costs and consulting fees, as well as employee-related matters. $19.4 million of these costs that impact the Companys operating margin are included in segment results, with the remainder in corporate overhead. One-time charges of $30.3 million are included in Other, net, primarily related to the extinguishment of debt and deal costs. Lastly, one-time charges of $135.5 million are included in restructuring charges, the majority of which represent Niscayah-related restructuring charges and cost containment actions associated with the severance of employees.

2013: Total one-time charges in 2013 related to M&A charges and cost containment actions, as well as the charges related to the extinguishment of debt were $393.5 million. Gross margin includes $29.5 million of these one-time charges, primarily for integration-related matters, and SG&A includes $136.3 million in one-time charges, primarily for integration-related administration costs and consulting fees, as well as employee-related matters. $76.5 million of these costs that impact the Companys operating margin are included in segment results, with the remainder in corporate overhead. One-time charges of $51.6 million are included in Other, net, primarily related to the extinguishment of debt and deal costs. Lastly, one-time charges of $176.1 million are included in restructuring charges, the majority of which represent Niscayah-related restructuring charges and cost containment actions associated with the severance of employees.

The company will host a conference call with investors today, Friday, January 24, 2014, at 8:00am ET. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.

You can also access the slides via the Stanley Black & Decker Investor Relations iPad & iPhone app from the Apple App Store by searching for SWK Investor Relations.

The call will be accessible by telephone within the US at (800) 708-4540, from outside the U.S. at +1 (847) 619-6397, and via the Internet at www.stanleyblackanddecker.com . To participate, please register on the web site at least fifteen minutes prior to the call and download and install any necessary audio software. Please use the conference identification number 3640-8064. A replay will also be available two hours after the call and can be accessed at (888) 843-7419 or +1 (630) 652-3042 using the passcode 3640-8064#.

The replay will also be available as a podcast within 24 hours and can be accessed on our website and via iTunes.

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com .

These results reflect the Companys continuing operations. The Company sold its Hardware & Home Improvement business (HHI), including the residential portion of Tong Lung in December of 2012. The sale of this business occurred in a First and Second Closing. The First closing, which excluded the residential portion of Tong Lung, occurred on December 17, 2012. The Second closing in which the residential portion of Tong Lung was sold occurred on April 8, 2013. The operating results of HHI have been reported as discontinued operations in 2012. The operating results of the residential portion of Tong Lung have been reported as discontinued operations for 2012 and through the date of sale in 2013. In addition, in 3Q13 the Company classified two small businesses as discontinued operations. The operating results of those businesses have been reported as discontinued operations for all periods presented. Total sales reported as discontinued operations were $38.4 million in 2013 and $973.2 million in 2012.

Organic sales growth is defined as total sales growth less the sales of companies acquired in the past twelve months and any foreign currency impacts. Operating margin is defined as sales less cost of sales and selling, general and administrative expenses. Management uses operating margin and its percentage of net sales as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Companys common stock and business acquisitions, among other items. The normalized statements of operations, cash flows and business segment information, as reconciled to GAAP on pages 13-18 for 2013 and 2012, are considered relevant to aid analysis of the Companys operating performance, earnings results and cash flows aside from the material impact of the one-time charges and payments associated with the Black & Decker merger, the Niscayah and Infastech acquisitions and other smaller acquisitions of the Company. Normalized cash flow and free cash flow, as reconciled from the associated GAAP measures on pages 15-16 for 2013 and 2012 are considered meaningful pro forma metrics to aid the understanding of the Companys cash flow performance aside from the material impact of the M&A-related payments and charges.

CAUTIONARY STATEMENTS

Under the Private Securities Litigation Reform Act of 1995

Statements in this press release and related analyst presentation that are not historical, including but not limited to those regarding the Companys ability to: (i) achieve full year 2014 diluted EPS of $5.30 - $5.50 ($5.18 - $5.38 on a GAAP basis) and 1Q 2014 EPS excluding charges and payments of $0.95-$0.98; (ii) deliver organic growth of approximately 4% in 2014; (iii) generate approximately $675 million of free cash flow for 2014 which includes approximately $250 million of one-time payments; (iv) return $1.5 billion to $2.0 billion of capital to stakeholders over the next two years through debt deleveraging and the repurchase of up to $1 billion in stock (collectively, the Results); are forward looking statements and subject to risk and uncertainty.

The Companys ability to deliver the Results as described above is based on current expectations and involves inherent risks and uncertainties, including factors listed below and other factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations. In addition to the risks, uncertainties and other factors discussed in this press release, the risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied in the forward looking statements include, without limitation, those set forth under Item 1A Risk Factors of the Companys Annual Report on Form 10-K and any material changes thereto set forth in any subsequent Quarterly Reports on Form 10-Q, or those contained in the Companys other filings with the Securities and Exchange Commission, and those set forth below.

The Companys ability to deliver the Results is dependent, or based, upon: (i) the Companys ability to execute its integration plans and achieve synergies primarily from the Infastech acquisition sufficient to generate $0.10 of EPS accretion in 2014; (ii) the Companys ability to generate organic net sales increases of approximately 4% in 2014; (iii) the Companys ability to continue to identify and execute upon sales opportunities to increase its CDIY, IAR and Security businesses in the emerging markets while minimizing associated costs; (iv) the Companys ability to achieve a tax rate of approximately 21-22% in 2014; (v) the Companys ability to limit the increase in interest and other expense to approximately $0.10-$0.15 of EPS in 2014; (vi) the Companys ability to improve margins in the Security business by at least 150 basis points in 2014; (vii) the Companys ability to generate approximately $0.20 of EPS accretion in 2014 through cost reductions in its CDIY and Industrial segments and its corporate functions; (viii) the Companys ability to limit one-time charges primarily associated with the Infastech acquisition to $25 million in 2014; (ix) the Companys ability to minimize tax liabilities associated with the HHI divestiture; (x) successful integration of acquisitions completed in 2012 and 2013, and any additional acquisitions completed during the year, as well as integration of existing businesses; (xi) the continued acceptance of technologies used in the Companys products and services; (xii) the Companys ability to manage existing Sonitrol franchisee and Mac Tools relationships; (xiii) the Companys ability to minimize costs associated with any sale or discontinuance of a business or product line, including any severance, restructuring, legal or other costs; (xiv) the proceeds realized with respect to any business or product line disposals; (xv) the extent of any asset impairments with respect to any businesses or product lines that are sold or discontinued; (xvi) the success of the Companys efforts to manage freight costs, steel and other commodity costs as well as capital expenditures; (xvii) the Companys ability to sustain or increase prices in order to, among other things, offset or mitigate the impact of steel, freight, energy, non-ferrous commodity and other commodity costs and any inflation increases; (xviii) the Companys ability to generate free cash flow and maintain a strong debt to capital ratio; (xix) the Companys ability to identify and effectively execute productivity improvements and cost reductions, while minimizing any associated restructuring charges; (xx) the Companys ability to obtain favorable settlement of tax audits; (xxi) the ability of the Company to generate earnings sufficient to realize future income tax benefits during periods when temporary differences become deductible; (xxii) the continued ability of the Company to access credit markets under satisfactory terms; (xxiii) the Companys ability to negotiate satisfactory payment terms under which the Company buys and sells goods, services, materials and products; (xxiv) the Companys ability to successfully develop, market and achieve sales from new products and services; and (xxv) the availability of cash to repurchase shares when conditions are right.

The Companys ability to deliver the Results is also dependent upon: (i) the success of the Companys marketing and sales efforts, including the ability to develop and market new and innovative products in both existing and new markets; (ii) the ability of the Company to maintain or improve production rates in the Companys manufacturing facilities, respond to significant changes in product demand and fulfill demand for new and existing products; (iii) the Companys ability to continue improvements in working capital through effective management of accounts receivable and inventory levels; (iv) the ability to continue successfully managing and defending claims and litigation; (v) the success of the Companys efforts to mitigate any cost increases generated by, for example, increases in the cost of energy or significant Chinese Renminbi or other currency appreciation; (vi) the geographic distribution of the Companys earnings; (vii) the commitment to and success of the Stanley Fulfillment System; and (viii) successful implementation with expected results of cost reduction programs.

The Companys ability to achieve the Results will also be affected by external factors. These external factors include: challenging global macroeconomic environment; the continued economic growth of emerging markets, particularly Latin America; pricing pressure and other changes within competitive markets; the continued consolidation of customers particularly in consumer channels; inventory management pressures on the Companys customers; the impact the tightened credit markets may have on the Company or its customers or suppliers; the extent to which the Company has to write off accounts receivable or assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; increasing competition; changes in laws, regulations and policies that affect the Company, including, but not limited to trade, monetary, tax and fiscal policies and laws; the timing and extent of any inflation or deflation; currency exchange fluctuations; the impact of dollar/foreign currency exchange and interest rates on the competitiveness of products and the Companys debt program; the strength of the U.S. and European economies; the extent to which world-wide markets associated with homebuilding and remodeling stabilize and rebound; the impact of events that cause or may cause disruption in the Companys supply, manufacturing, distribution and sales networks such as war, terrorist activities, and political unrest; and recessionary or expansive trends in the economies of the world in which the Company operates. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)


FOURTH QUARTER YEAR TO DATE

2013
2012 2013 2012

NET SALES $ 2,906.0 $ 2,659.5 $ 11,001.2 $ 10,147.9

COSTS AND EXPENSES
Cost of sales 1,875.3 1,713.4 7,068.3 6,452.4
Gross margin 1,030.7 946.1 3,932.9 3,695.5
% of Net Sales 35.5 % 35.6 % 35.7 % 36.4 %

Selling, general and administrative 703.1 636.6 2,714.6 2,499.9
% of Net sales 24.2 % 23.9 % 24.7 % 24.6 %

Operating margin 327.6 309.5 1,218.3 1,195.6
% of Net sales 11.3 % 11.6 % 11.1 % 11.8 %

Other - net 99.2 83.0 308.0 345.3
Restructuring charges 135.5 57.4 176.1 174.0
Income from operations
92.9 169.1 734.2 676.3

Interest - net 38.5 36.1 147.6 134.1

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 54.4 133.0 586.6 542.2
Income tax (benefit) expense on continuing operations (11.2 ) (4.7 ) 69.3 78.2
NET EARNINGS FROM CONTINUING OPERATIONS 65.6 137.7 517.3 464.0

Less: net (loss) earnings attributable to non-controlling interests (0.1 ) 0.4 (1.0 ) (0.8 )

NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE
TO COMMON SHAREOWNERS 65.7 137.3 518.3 464.8

(Loss) earnings from discontinued operations before income taxes (9.0 ) 390.8 (42.0 ) 488.8
Income tax expense (benefit) on discontinued operations 0.6 36.0 (14.0 ) 69.8
NET (LOSS) EARNINGS FROM DISCONTINUED OPERATIONS (9.6 ) 354.8 (28.0 ) 419.0

NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS $ 56.1 $ 492.1 $ 490.3 $ 883.8


BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Continuing operations $ 0.42 $ 0.85 $ 3.34 $ 2.85
Discontinued operations (0.06 ) 2.20 (0.18 ) 2.57
Total basic earnings per share of common stock ... $ 0.36 $ 3.05 $ 3.16 $ 5.41

DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Continuing operations $ 0.41 $ 0.83 $ 3.26 $ 2.79
Discontinued operations (0.06 ) 2.16 (0.18 ) 2.51
Total diluted earnings per share of common stock $ 0.35 $ 2.99 $ 3.09 $ 5.30

DIVIDENDS PER SHARE $ 0.50 $ 0.49 $ 1.98 $ 1.80

AVERAGE SHARES OUTSTANDING (in thousands)
Basic 155,512 161,212 155,237 163,067
Diluted 159,200 164,553 158,776 166,701


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)

December 28, December 29,
2013 2012

ASSETS
Cash and cash equivalents $ 496.2 $ 716.0
Accounts and notes receivable, net 1,633.0 1,525.8
Inventories, net 1,485.8 1,304.6
Assets held for sale 10.1 171.7
Other current assets 338.0 393.2
Total current assets 3,963.1 4,111.3
Property, plant and equipment, net 1,485.3 1,329.9
Goodwill and other intangibles, net 10,632.9 9,947.0
Other assets 454.4 455.8
Total assets $ 16,535.7 $ 15,844.0


LIABILITIES AND SHAREOWNERS' EQUITY
Short-term borrowings $ 402.6 $ 11.5
Accounts payable 1,575.9 1,345.9
Accrued expenses 1,245.4 1,680.0
Liabilities held for sale 6.3 37.3
Total current liabilities 3,230.2 3,074.7
Long-term debt 3,799.4 3,526.5
Other long-term liabilities 2,643.3 2,515.7
Stanley Black & Decker, Inc. shareowners' equity 6,781.5 6,667.1
Non-controlling interests' equity 81.3 60.0
Total liabilities and equity $ 16,535.7 $ 15,844.0


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)

FOURTH QUARTER YEAR TO DATE

2013 2012 2013 2012
OPERATING ACTIVITIES
Net earnings from continuing operations $ 65.6 $ 137.7 $ 517.3 $ 464.0
Net (loss) earnings from discontinued operations (9.6 ) 354.8 (28.0 ) 419.0
Net gains on HHI sale - (358.9 ) (4.7 ) (358.9 )
Depreciation and amortization 118.6 114.7 441.3 445.3
Changes in working capital1 384.0 338.5 12.4 52.5
Other 173.1 (38.7 ) (70.3 ) (55.7 )
Net cash provided by operating activities 731.7 548.1 868.0 966.2


INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures (103.5 ) (126.5 ) (365.6 ) (386.0 )
Acquisitions, net of cash acquired (7.3 ) (12.2 ) (933.9 ) (707.3 )
Proceeds from sale of business / assets 1.0 1,261.6 97.5 1,270.2
Proceeds from long-term borrowings 726.7 794.1 726.7 1,523.5
Premium paid on debt extinguishment (42.8 ) - (42.8 ) (91.0 )
Proceeds from issuances of common stock 15.9 23.5 154.6 126.4
Net short-term (repayments) borrowings (810.8 ) (1,335.4 ) 388.7 (19.1 )
Cash dividends on common stock (77.7 ) (82.7 ) (312.7 ) (304.0 )
Payments on long-term debt (300.5 ) (200.3 ) (302.2 ) (1,422.3 )
Purchases of common stock for treasury (6.6 ) (856.0 ) (39.2 ) (1,073.8 )
Premium paid for equity option (83.2 ) (29.5 ) (83.2 ) (29.5 )
Payment on forward stock purchase contract - - (350.0 ) -
Other (15.8 ) (38.2 ) (25.7 ) (44.2 )
Net cash used in investing and financing activities (704.6 ) (601.6 ) (1,087.8 ) (1,157.1 )

Increase (Decrease) in Cash and Cash Equivalents 27.1 (53.5 ) (219.8 ) (190.9 )

Cash and Cash Equivalents, Beginning of Period 469.1 769.5 716.0 906.9

Cash and Cash Equivalents, End of Period $ 496.2 $ 716.0 $ 496.2 $ 716.0


(1 ) The change in working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)


FOURTH QUARTER YEAR TO DATE

2013 2012 2013 2012

NET SALES

Construction & DIY $ 1,455.4 $ 1,370.8 $ 5,481.1 $ 5,189.9
Industrial 824.4 648.7 3,097.5 2,557.8
Security 626.2 640.0 2,422.6 2,400.2
Total $ 2,906.0 $ 2,659.5 $ 11,001.2 $ 10,147.9


SEGMENT PROFIT
Construction & DIY $ 209.2 $ 188.7 $ 798.0 $ 720.9
Industrial 128.7 100.1 436.2 414.3
Security 64.5 88.3 238.0 312.7
Segment Profit
402.4 377.1 1,472.2 1,447.9
Corporate Overhead (74.8 ) (67.6 ) (253.9 ) (252.3 )
Total
$ 327.6 $ 309.5 $ 1,218.3 $ 1,195.6


Segment Profit as a Percentage of Net Sales
Construction & DIY
14.4 % 13.8 % 14.6 % 13.9 %
Industrial 15.6 % 15.4 % 14.1 % 16.2 %
Security 10.3 % 13.8 % 9.8 % 13.0 %
Segment Profit
13.8 % 14.2 % 13.4 % 14.3 %
Corporate Overhead (2.6 %) (2.5 %) (2.3 %) (2.5 %)
Total
11.3 % 11.6 % 11.1 % 11.8 %


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

FOURTH QUARTER 2013
Reported
Merger &
Acquisition-
Related and
Other
Charges1
Normalized2

Gross margin
$ 1,030.7 $ 3.1 $ 1,033.8
% of Net Sales
35.5 % 35.6 %

Selling, general and administrative
703.1 (46.0 ) 657.1
% of Net Sales
24.2 % 22.6 %

Operating margin 327.6 49.1 376.7
% of Net Sales 11.3 % 13.0 %

Earnings from continuing operations before income taxes 54.4 214.9 269.3

Income tax (benefit) expense on continuing operations (11.2 ) 70.8 59.6

Net earnings from continuing operations 65.7 144.1 209.8

Diluted earnings per share of common stock $ 0.41 $ 0.91 $ 1.32


(1 ) Merger and acquisition-related and other charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs, as well as cost containment charges. Other charges relate to the loss on extinguishment of debt.
(2 ) The normalized 2013 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges as well as charges associated with the loss on extinguishment of debt.

FOURTH QUARTER 2012
Reported
Merger &
Acquisition-
Related
Charges3
Normalized4

Gross margin $ 946.1 $ 11.3 $ 957.4
% of Net Sales 35.6 % 36.0 %

Selling, general and administrative 636.6 (38.5 ) 598.1
% of Net Sales 23.9 % 22.5 %

Operating margin 309.5 49.8 359.3
% of Net Sales 11.6 % 13.5 %

Earnings from continuing operations before income taxes 133.0 131.4 264.4

Income taxes (benefit) on continuing operations (4.7 ) 36.4 31.7

Net earnings from continuing operations 137.3 95.0 232.3

Diluted earnings per share of common stock $ 0.83 $ 0.58 $ 1.41


(3 ) Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges and integration costs.
(4 ) The normalized 2012 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges.


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

YEAR TO DATE 2013
Reported
Merger &
Acquisition-
Related and
Other
Charges1
Normalized3

Gross margin $ 3,932.9 29.5 $ 3,962.4
% of Net Sales 35.7 % 36.0 %

Selling, general and administrative 2,714.6 (136.3 ) 2,578.3
% of Net Sales 24.7 % 23.4 %

Operating margin 1,218.3 165.8 1,384.1
% of Net Sales 11.1 % 12.6 %

Earnings from continuing operations before income taxes 586.6 393.5 980.1

Income taxes on continuing operations 69.3 120.8 190.1

Net earnings from continuing operations 518.3 272.7 791.0

Diluted earnings per share of common stock $ 3.26 $ 1.72 $ 4.98


(1 ) Merger and acquisition-related and other charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs, as well as cost containment charges. Other charges relate to the loss on extinguishment of debt.

YEAR TO DATE 2012
Reported
Merger &
Acquisition-
Related and
Other
Charges2
Normalized3

Gross margin $ 3,695.5 29.6 $ 3,725.1
% of Net Sales 36.4 % 36.7 %

Selling, general and administrative 2,499.9 (138.4 ) 2,361.5
% of Net Sales 24.6 % 23.3 %

Operating margin 1,195.6 168.0 1,363.6
% of Net Sales 11.8 % 13.4 %

Earnings from continuing operations before income taxes 542.2 442.2 984.4

Income taxes on continuing operations 78.2 113.0 191.2

Net earnings from continuing operations 464.8 329.2 794.0

Diluted earnings per share of common stock $ 2.79 $ 1.97 $ 4.76


(2 ) Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges, integration costs, as well as cost containment charges. Other charges relate to the loss on extinguishment of debt.
(3 ) The normalized 2013 and 2012 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges as well as charges associated with the loss on extinguishment of debt.


STANLEY BLACK & DECKER INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP CASH FLOW FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)

FOURTH QUARTER 2013
Reported
Merger &
Acquisition-
Related
Charges and
Payments1
Normalized4

Free Cash Flow Computation3
Net cash provided by operating activities $ 731.7 56.3 $ 788.0
Less: capital and software expenditures (103.5 ) 13.1 (90.4 )
Free Cash Inflow (before dividends) $ 628.2 $ 697.6

(1 ) Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs, as well as cost containment charges.


FOURTH QUARTER 2012
Reported
Merger &
Acquisition-
Related
Charges and
Payments2
Normalized4

Free Cash Flow Computation3
Net cash provided by operating activities $ 548.1 144.3 $ 692.4
Less: capital and software expenditures (126.5 ) 30.4 (96.1 )
Free Cash Inflow (before dividends) $ 421.6 $ 596.3


(2 ) Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges, integration costs, as well as cost containment charges.

(3, 4 ) Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. Normalized cash flow and free cash flow, as reconciled above, are considered meaningful pro forma metrics to aid the understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities.


STANLEY BLACK & DECKER INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP CASH FLOW FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)

YEAR TO DATE 2013
Reported
Merger &
Acquisition-
Related
Charges and
Payments1
Normalized4

Free Cash Flow Computation3
Net cash provided by operating activities $ 868.0 280.0 $ 1,148.0
Less: capital and software expenditures (365.6 ) 71.7 (293.9 )
Free Cash Inflow (before dividends) $ 502.4 $ 854.1

(1 ) Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs, as well as cost containment charges.


YEAR TO DATE 2012
Reported
Merger &
Acquisition-
Related
Charges and
Payments2
Normalized4

Free Cash Flow Computation3
Net cash provided by operating activities $ 966.2 356.5 $ 1,322.7
Less: capital and software expenditures (386.0 ) 122.4 (263.6 )
Free Cash Inflow (before dividends) $ 580.2 $ 1,059.1


(2 ) Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges, integration costs, as well as cost containment charges.

(3, 4 ) Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. Normalized cash flow and free cash flow, as reconciled above, are considered meaningful pro forma metrics to aid the understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities.

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)


FOURTH QUARTER 2013

Reported
Merger &
Acquisition-
Related
Charges1
Normalized3
SEGMENT PROFIT

Construction & DIY $ 209.2 $ 3.8 $ 213.0
Industrial 128.7 4.0 132.7
Security 64.5 11.6 76.1
Segment Profit
402.4 19.4 421.8
Corporate Overhead (74.8 ) 29.7 (45.1 )
Total
$ 327.6 $ 49.1 $ 376.7


Segment Profit as a Percentage of Net Sales
Construction & DIY 14.4 % 14.6 %
Industrial 15.6 % 16.1 %
Security 10.3 % 12.2 %
Segment Profit 13.8 % 14.5 %
Corporate Overhead (2.6 %) (1.6 %)
Total 11.3 % 13.0 %


(1 ) Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.
FOURTH QUARTER 2012

Reported
Merger &
Acquisition-
Related
Charges2
Normalized3
SEGMENT PROFIT

Construction & DIY $ 188.7 $ 10.7 $ 199.4
Industrial 100.1 4.3 104.4
Security 88.3 15.4 103.7
Segment Profit 377.1 30.4 407.5
Corporate Overhead (67.6 ) 19.4 (48.2 )
Total $ 309.5 $ 49.8 $ 359.3


Segment Profit as a Percentage of Net Sales
Construction & DIY 13.8 % 14.5 %
Industrial 15.4 % 16.1 %
Security 13.8 % 16.2 %
Segment Profit 14.2 % 15.3 %
Corporate Overhead (2.5 %) (1.8 %)
Total 11.6 % 13.5 %

(2 ) Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges and integration costs.
(3 ) The normalized 2013 and 2012 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges.


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)


YEAR TO DATE 2013
Reported
Merger &
Acquisition-
Related
Charges1
Normalized3
SEGMENT PROFIT

Construction & DIY $ 798.0 $ 13.0 $ 811.0
Industrial 436.2 24.8 461.0
Security 238.0 38.7 276.7
Segment Profit
1,472.2 76.5 1,548.7
Corporate Overhead (253.9 ) 89.3 (164.6 )
Total
$ 1,218.3 $ 165.8 $ 1,384.1


Segment Profit as a Percentage of Net Sales
Construction & DIY 14.6 % 14.8 %
Industrial 14.1 % 14.9 %
Security 9.8 % 11.4 %
Segment Profit 13.4 % 14.1 %
Corporate Overhead (2.3 %) (1.5 %)
Total 11.1 % 12.6 %


(1 ) Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.
YEAR TO DATE 2012
Reported
Merger &
Acquisition-
Related
Charges2
Normalized3
SEGMENT PROFIT

Construction & DIY $ 720.9 $ 41.7 $ 762.6
Industrial 414.3 7.9 422.2
Security 312.7 41.3 354.0
Segment Profit 1,447.9 90.9 1,538.8
Corporate Overhead (252.3 ) 77.1 (175.2 )
Total $ 1,195.6 $ 168.0 $ 1,363.6


Segment Profit as a Percentage of Net Sales
Construction & DIY 13.9 % 14.7 %
Industrial 16.2 % 16.5 %
Security 13.0 % 14.7 %
Segment Profit 14.3 % 15.2 %
Corporate Overhead (2.5 %) (1.7 %)
Total 11.8 % 13.4 %

(2 ) Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges, integration costs.
(3 ) The normalized 2013 and 2012 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges.

Contact:
Stanley Black & Decker
Greg Waybright, 860-827-3833
Vice President, Investor & Government Relations
greg.waybright@sbdinc.com
👍️0
Drmicrocap Drmicrocap 11 years ago
Stanley Black & Decker Announces Release Date for Fourth Quarter and Full Year 2013 Earnings
Business Wire Stanley Black & Decker
January 6, 2014 9:04 AM

NEW BRITAIN, Conn.--(BUSINESS WIRE)--

Stanley Black & Decker (SWK) will broadcast its fourth quarter and full year 2013 earnings conference call on Friday, January 24th, 2014. The call will begin at 8:00AM ET.

A news release outlining the financial results will be distributed before the market opens on Friday, January 24th. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.

The call will be accessible by telephone within the US at (800) 708-4540, from outside the U.S. at +1 (847) 619-6397, and via the Internet at www.stanleyblackanddecker.com. To participate, please register on the web site at least fifteen minutes prior to the call and download and install any necessary audio software. Please use the conference identification number 3640-8064. A replay will also be available two hours after the call and can be accessed at (888) 843-7419 or +1 (630) 652-3042 using the passcode 3640-8064#.

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.


Contact:
Stanley Black & Decker
Greg Waybright, 860-827-3833
Vice President, Investor & Government Relations
greg.waybright@sbdinc.com
👍️0
Drmicrocap Drmicrocap 11 years ago
Stanley Black & Decker Announces Release Date for Fourth Quarter and Full Year 2013 Earnings
Business Wire Stanley Black & Decker
January 6, 2014 9:04 AM

NEW BRITAIN, Conn.--(BUSINESS WIRE)--

Stanley Black & Decker (SWK) will broadcast its fourth quarter and full year 2013 earnings conference call on Friday, January 24th, 2014. The call will begin at 8:00AM ET.

A news release outlining the financial results will be distributed before the market opens on Friday, January 24th. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.

The call will be accessible by telephone within the US at (800) 708-4540, from outside the U.S. at +1 (847) 619-6397, and via the Internet at www.stanleyblackanddecker.com. To participate, please register on the web site at least fifteen minutes prior to the call and download and install any necessary audio software. Please use the conference identification number 3640-8064. A replay will also be available two hours after the call and can be accessed at (888) 843-7419 or +1 (630) 652-3042 using the passcode 3640-8064#.

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.


Contact:
Stanley Black & Decker
Greg Waybright, 860-827-3833
Vice President, Investor & Government Relations
greg.waybright@sbdinc.com
👍️0
Drmicrocap Drmicrocap 11 years ago
Stanley Black & Decker Reports 3Q 2013 Results
Business WirePress Release: Stanley Black & Decker – Wed, Oct 16, 2013 6:00 AM EDT..

Stanley Black & Decker (SWK) today announced third quarter 2013 financial results.
• 3Q’13 Revenues Increased 10% To $2.8 Billion; Organic Growth 4%
• Organic Growth Initiatives Continue To Gain Traction Driving One-Half Of The Organic Growth (2 Points)
• 3Q’13 Diluted GAAP EPS Was $1.07; Excluding Charges, 3Q’13 Diluted EPS Was $1.39
• 2013 FY EPS Guidance Range, Excluding Charges, Revised To $4.90 - $5.00 ($3.75 - $3.95 On A GAAP Basis) From $5.40 - $5.65 as a result of slower margin rate recovery within the Security segment, weakening emerging markets and the impact of the U.S. government shutdown on organic growth
• Free Cash Flow Excluding Charges And Payments Revised To Approximately $800 Million Vs. Prior Estimate Of Approximately $1 Billion

3Q’13 Key Points:
• Net sales for the period were $2.8 billion, up 10% versus the prior year, attributable to volume (+5%) and acquisitions (+7%), partially offset by price (-1%) and currency (-1%).
• The gross margin rate for the quarter was 35.8%. Excluding charges, the gross margin rate was 36.0%, down from the prior year rate of 36.7%, as the favorable impact of volume and cost synergies was more than offset by Security margins.
• SG&A expenses were 24.3% of sales. Excluding charges, SG&A expenses were 23.1% of sales, compared to a 3Q’12 level of 22.7%, primarily reflecting investments in organic growth initiatives.
• Operating margin was 11.5% of sales. Excluding charges, operating margin was 12.9% of sales, down 110 basis points from the 3Q’12 operating margin of 14.0%.
• The tax rate was 9.2%. Excluding charges, the tax rate was 13.1%, reflecting the realization of certain tax credits and the higher level of earnings in lower-taxed foreign jurisdictions.
• Diluted GAAP EPS was $1.07. Excluding charges, 3Q’13 diluted EPS was $1.39.

Stanley Black & Decker’s Chairman and CEO, John F. Lundgren, commented, “We continue to make significant progress driving organic growth throughout the organization. Our focused organic growth initiatives have resulted in a strong third quarter performance and maintained the momentum we achieved in the second quarter.

“Growth was robust across the portfolio with our CDIY and Industrial segments posting another strong organic growth quarter, and with the exception of Europe, Security also achieved solid, mid-single digit organic growth. Within Security, we are gaining further traction with our verticals initiative based on recent order activity and are encouraged by the sequential growth and margin improvements in this segment during the quarter. However, the achievement of high teen margins, which we believe represent the appropriate level given the characteristics of this business, is taking longer than anticipated.

“Progress from our organic growth initiatives combined with the overall strength and diversity of our portfolio and underlying strategic framework position us well to deliver on our previously stated long-term financial objectives.”

3Q’13 Segment Results


($ in M) 3Q' 13 Segment Results
Sales Profit Charges1 Profit
Ex-Charges1
Profit Rate Profit Rate
Ex-Charges1


CDIY $1,388 $203.9 $3.1 $207.0 14.7% 14.9%

Industrial $771 $109.2 $2.3 $111.5 14.2% 14.5%

Security $600 $61.4 $11.9 $73.3 10.2% 12.2%

1 M&A charges primarily pertaining to synergy attainment & facility closures


• In the CDIY segment, net sales increased 5% vs. 3Q’12 as a result of volume (+6%) and acquisitions (+1%), partially offset by price (-1%) and currency (-1%). Similar to the prior quarter, strong organic volumes were achieved in North America, primarily driven by new product introductions, retail promotions and continued strength in the residential construction market, as well as within the emerging markets which grew 10%. While the emerging markets continue to be a source of strength, current macroeconomic conditions have caused growth rates to decelerate somewhat. European volumes were solid; up 3% organically, with growth in all regions. In particular, the UK performed well reflecting share gains in the face of continued soft economic conditions. Excluding charges, overall segment profit was 14.9%, relatively consistent with the 2Q’13 rate but down from the 3Q’12 rate of 15.5% as investments in organic growth initiatives and currency pressures offset volume and productivity.
• Net sales in the Industrial segment rose 25%. Unit volumes increased approximately 4%, currency was down 1% and acquisitions added 22%. Pricing was flat for the quarter. Oil & Gas posted another strong quarter of impressive organic growth (+32%) driven primarily by continued strength within its North American onshore operations. Organic sales for Industrial and Automotive Repair (IAR) increased 2% primarily as a result of volume increases in North America and the emerging markets. Similar to CDIY, although strong, IAR’s emerging markets growth fell short of expectations due to the weakening of these markets. Consistent with the prior quarter, volume growth in North America was driven by the MRO vending growth initiative as well as strength within Mac Tools mobile distribution, which more than offset the impact of spending cuts on IAR’s US Government business and the results of IAR’s European operations. Engineered Fastening organic growth was relatively flat in the face of a difficult equipment sales comparison, even as organic fastener volume was up 6%. The integration of Infastech continues to progress as planned and is on track to deliver its planned synergies.

Overall Industrial segment profit excluding charges was 14.5% down from the 3Q’12 rate of 15.4% due primarily to investments in organic growth initiatives and the mix impact of Infastech’s modestly below line average margins.
• Net sales in Security increased 3% versus 3Q’12 due to pricing (+1%) acquisitions (+1%) and currency (+1%). Volume was relatively flat. Organic growth within the CSS North America business was up an encouraging 6% driven by higher installation and service volumes supported by early successes with the vertical markets organic growth initiative. CSS Europe declined 4% organically due primarily to continued softness in various regions, most notably France and the Nordics.

Mechanical Access organic sales were up 4% driven by strong growth within the automatic door business due to successful door conversion wins and new product introductions. The commercial mechanical lock business also experienced growth during the quarter driven by gains in emerging markets.

Security segment profit rate excluding charges was 12.2%, up 170 basis points from the 2Q’13 rate and 380 basis points lower than the 3Q’12 rate. The sequential improvement in the rate is primarily attributable to North America volume improvements due in part to organic growth investments, the elimination of costs associated with the commercial lock business model shift, and progress relating to field technician productivity. As previously communicated, the year over year decline in the rate resulted from field technician costs required to install and service the growing second half North American backlog, investments in organic growth initiatives, European volume declines and temporary negative rate pressure in the commercial lock business due to the business model shift.

President and Chief Operating Officer, James M. Loree, commented, “While the slower macro backdrop has created some challenges as global economic growth rates have notched downward, we are encouraged by the fact that most of our businesses continue to post solid organic performances aided by our substantial growth investments. As we move into 2014 we are entering the period in which these investments will become accretive to operating margin.

“As for Security, notable progress was made during the quarter outside of Europe on both organic growth (+4%) and operating margin rate (~15%) and we expect to see continued progress in 2014. European Security made less tangible progress on organic growth (down 4%) and rate (~7%); however, its management team made significant underlying headway on talent upgrades and basic business model fixes that will bear fruit as we enter 2014. Substantial improvements have been made in both North America and Europe with the latter being manifested about six months behind our expectations. Therefore, we fully expect Security to regain its appropriate position as a revenue and earnings growth driver in 2014 and beyond.”

Revision Of 2013 Outlook

As a result of a slower than expected margin rate recovery within our Security operations as well as overall lower than previously anticipated organic growth related to macro issues affecting emerging markets and the U.S. government budget impasse, the Company is revising its outlook for full year 2013 EPS and free cash flow to approximately $4.90 - $5.00 per share and $800 million, respectively, excluding charges and payments, based on the following:
• Approximately half of the full year EPS outlook reduction relates to the aforementioned slower than expected pace of the Security margin improvement.
• The balance of the reduction relates to lower organic growth expectations within our CDIY and Industrial segments. This is primarily attributable to growth pressure within the emerging markets due to the current volatile macroeconomic environment, and the uncertainty created by the U.S. government’s sequestration and shut-down, and its impact on business, consumer confidence and spending levels.
• Partially offsetting these items will be a lower tax rate of ~20% versus our prior estimated tax rate of ~23%.
• These factors combined with lower than expected working capital performance create a reduction to our free cash flow estimate for the year.
• FY’13 organic growth is now expected to approximate 3% versus the prior expectation range of 4%-5%.
• All other assumptions remain unchanged from our prior guidance

Including all charges, the Company expects GAAP EPS to be in the range of $3.75 - $3.95 in 2013. For the full year of 2013 the Company estimates one-time pre-tax charges to be approximately $225 - $250 million.

Donald Allan Jr., Senior Vice President and CFO commented, “As the year progresses, our strong organic growth performance within many of our businesses continues to be a bright spot for Stanley Black & Decker. However, the year-to-date performance of our Security business has created pressure on our results which has, along with lower organic growth expectations within certain businesses and geographies, caused us to revise our full year 2013 earnings and free cash flow outlook. The actions we have taken and are executing to address the Security segment’s margin performance will enable us to increase Security margins to levels that are more closely aligned to historical results. We remain focused and committed to attaining our long-term financial goals and 2016/2017 vision enabled by our disciplined focus on organic growth initiatives, our commitment to allocating capital in ways that provide excellent returns for our shareholders, and our proven capabilities of driving efficiencies and streamlining our operations via the Stanley Fulfillment System.

“Assuming that the level of volatility and current uncertainty in the markets we serve does not worsen in 2014 and based on our path to recovery in Security, we see conditions in 2014 that support our long-term 4%-6% organic growth expectations and 2014 EPS growth, excluding charges, ranging from 7% - 9%.”

Merger And Acquisition (M&A) One-Time Charges

Total one-time charges in 3Q’13 related to M&A were $67.2 million. Gross margin includes $5.3 million of these one-time charges, primarily for integration-related matters, and SG&A includes $31.9 million in one-time charges, primarily for integration-related administration costs and consulting fees, as well as employee-related matters. $17.3 million of these costs that impact the Company’s operating margin are included in segment results, with the remainder in corporate overhead. One-time charges of $1.5 million are included in Other, net, primarily related to deal costs, and $28.5 million are included in restructuring charges, the majority of which represent Niscayah-related restructuring charges and cost containment actions associated with the severance of employees.

The company will host a conference call with investors today, Wednesday, October 16, at 8:00am ET. A slide presentation which will accompany the call will be available at www.stanleyblackanddecker.com and will remain available after the call.

You can also access the slides via the Stanley Black & Decker Investor Relations iPad & iPhone app from the Apple App Store by searching for “SWK Investor Relations”.

The call will be accessible by telephone at (800) 447-0521, from outside the U.S. at +1 (847) 413-3238, and via the Internet at www.stanleyblackanddecker.com. To participate, please register on the web site at least fifteen minutes prior to the call and download and install any necessary audio software. Please use the conference identification number 3574-6661. A replay will also be available two hours after the call and can be accessed at (888) 843-7419 or +1 (630) 652-3042 using the passcode 3574-6661#. The replay will also be available as a podcast within 24 hours and can be accessed on our website and via iTunes.

Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Learn more at www.stanleyblackanddecker.com.

These results reflect the Company’s continuing operations. The Company sold its Hardware & Home Improvement business (HHI), including the residential portion of Tong Lung in December of 2012. The sale of this business occurred in a First and Second Closing. The First closing, which excluded the residential portion of Tong Lung, occurred on December 17, 2012. The Second closing in which the residential portion of Tong Lung was sold occurred on April 8, 2013. The operating results of the residential portion of Tong Lung and HHI have been reported as discontinued operations for 3Q’12. In addition, in 3Q’13 the Company has reported two small businesses as discontinued operations. Total sales reported as discontinued operations were $7.8 million and $268.8 million for 3Q’13 and 3Q’12, respectively.

Organic sales growth is defined as total sales growth less the sales of companies acquired in the past twelve months and any foreign currency impacts. Operating margin is defined as sales less cost of sales and selling, general and administrative expenses. Management uses operating margin and its percentage of net sales as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. The normalized statement of operations, cash flows and business segment information, as reconciled to GAAP on pages 13-18 for 2013 and 2012, are considered relevant to aid analysis of the Company’s operating performance, earnings results and cash flows aside from the material impact of the one-time charges and payments associated with the Black & Decker merger, the Niscayah and Infastech acquisitions and other smaller acquisitions of the Company. Normalized cash flow and free cash flow, as reconciled from the associated GAAP measures on pages 15-16 for 2013 and 2012 are considered meaningful pro forma metrics to aid the understanding of the Company’s cash flow performance aside from the material impact of the M&A-related payments and charges.

CAUTIONARY STATEMENTS

Under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are not historical, including but not limited to those regarding the Company’s ability to: (i) achieve full year 2013 diluted EPS of $4.90 - $5.00 ($3.75 - $3.95 on a GAAP basis); (ii) generate approximately $800 million in free cash flow for 2013, excluding charges and payments; (iii) achieve its 2016/2017 vision; and (iv) achieve long term organic growth of 4% - 6% and 2014 EPS growth ranging from 7% - 9% (collectively, the “Results”); are “forward looking statements” and subject to risk and uncertainty.

The Company’s ability to deliver the Results as described above is based on current expectations and involves inherent risks and uncertainties, including factors listed below and other factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations. In addition to the risks, uncertainties and other factors discussed in this press release, the risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied in the forward looking statements include, without limitation, those set forth under Item 1A Risk Factors of the Company’s Annual Report on Form 10-K and any material changes thereto set forth in any subsequent Quarterly Reports on Form 10-Q, or those contained in the Company’s other filings with the Securities and Exchange Commission, and those set forth below.

The Company’s ability to deliver the Results is dependent, or based, upon: (i) the Company’s ability to achieve $50 million of synergies in 2013 from Black & Decker merger and another $50 million from the acquisition of Niscayah; (ii) the Company’s ability to execute its integration plans and achieve synergies from the Infastech acquisition sufficient to generate $.20 of EPS accretion in 2013; (iii) the Company’s ability to generate organic net sales increases of approximately 3% in 2013; (iv) the Company’s ability to generate a modest increase in operating margin vs. the prior year in the CDIY segment and to minimize any decrease in operating margin vs. the prior year in the Security and Industrial segments; (v) the Company’s ability to continue to identify and execute upon acquisitions and sales opportunities to increase its CDIY, IAR and Security businesses in the emerging markets while minimizing associated costs; (vi) the Company’s ability to achieve a tax rate of approximately 20% in 2013; (vii) the Company’s ability to limit interest expense to approximately $145 million and other-net to approximately $250 million in 2013; (viii) the Company’s ability to minimize tax liabilities associated with the HHI divestiture; (ix) successful integration of acquisitions completed in 2012 and 2013, and any additional acquisitions completed during the year, as well as integration of existing businesses; (x) the continued acceptance of technologies used in the Company’s products and services; (xi) the Company’s ability to manage existing Sonitrol franchisee and Mac Tools relationships; (xii) the Company’s ability to minimize costs associated with any sale or discontinuance of a business or product line, including any severance, restructuring, legal or other costs; (xiii) the proceeds realized with respect to any business or product line disposals; (xiv) the extent of any asset impairments with respect to any businesses or product lines that are sold or discontinued; (xv) the success of the Company’s efforts to manage freight costs, steel and other commodity costs as well as capital expenditures; (xvi) the Company’s ability to sustain or increase prices in order to, among other things, offset or mitigate the impact of steel, freight, energy, non-ferrous commodity and other commodity costs and any inflation increases; (xvii) the Company’s ability to generate free cash flow and maintain a strong debt to capital ratio; (xviii) the Company’s ability to identify and effectively execute productivity improvements and cost reductions, while minimizing any associated restructuring charges; (xix) the Company’s ability to obtain favorable settlement of routine tax audits; (xx) the ability of the Company to generate earnings sufficient to realize future income tax benefits during periods when temporary differences become deductible; (xxi) the continued ability of the Company to access credit markets under satisfactory terms; (xxii) the Company’s ability to negotiate satisfactory payment terms under which the Company buys and sells goods, services, materials and products; and (xxiii) the Company’s ability to successfully develop, market and achieve sales from new products and services.

The Company’s ability to deliver the Results is also dependent upon: (i) the success of the Company’s marketing and sales efforts, including the ability to develop and market new and innovative products in both existing and new markets; (ii) the ability of the Company to maintain or improve production rates in the Company’s manufacturing facilities, respond to significant changes in product demand and fulfill demand for new and existing products; (iii) the Company’s ability to continue improvements in working capital through effective management of accounts receivable and inventory levels; (iv) the ability to continue successfully managing and defending claims and litigation; (v) the success of the Company’s efforts to mitigate any cost increases generated by, for example, increases in the cost of energy or significant Chinese Renminbi or other currency appreciation; (vi) the geographic distribution of the Company’s earnings; (vii) the commitment to and success of the Stanley Fulfillment System; and (viii) successful implementation with expected results of cost reduction programs.

The Company’s ability to achieve the Results will also be affected by external factors. These external factors include: challenging global macroeconomic environment; the continued economic growth of emerging markets, particularly Latin America; pricing pressure and other changes within competitive markets; the continued consolidation of customers particularly in consumer channels; inventory management pressures on the Company’s customers; the impact the tightened credit markets may have on the Company or its customers or suppliers; the extent to which the Company has to write off accounts receivable or assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; increasing competition; changes in laws, regulations and policies that affect the Company, including, but not limited to trade, monetary, tax and fiscal policies and laws; the timing and extent of any inflation or deflation; currency exchange fluctuations; the impact of dollar/foreign currency exchange and interest rates on the competitiveness of products and the Company’s debt program; the strength of the U.S. and European economies; the extent to which world-wide markets associated with homebuilding and remodeling stabilize and rebound; the impact of events that cause or may cause disruption in the Company’s supply, manufacturing, distribution and sales networks such as war, terrorist activities, and political unrest; and recessionary or expansive trends in the economies of the world in which the Company operates. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.



STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)


THIRD QUARTER YEAR TO DATE
2013 2012 2013 2012

NET SALES $ 2,759.3 $ 2,517.2 $ 8,095.2 $ 7,488.4

COSTS AND EXPENSES
Cost of sales 1,771.6 1,605.3 5,193.0 4,739.0
Gross margin 987.7 911.9 2,902.2 2,749.4
% of Net Sales 35.8 % 36.2 % 35.9 % 36.7 %

Selling, general and administrative 669.6 609.2 2,011.5 1,863.3
% of Net sales 24.3 % 24.2 % 24.8 % 24.9 %

Operating margin 318.1 302.7 890.7 886.1

% of Net sales
11.5 % 12.0 % 11.0 % 11.8 %

Other - net 66.6 112.7 208.8 262.3
Restructuring charges 28.5 52.9 40.6 116.6
Income from operations 223.0 137.1 641.3 507.2

Interest - net 36.1 34.2 109.1 98.0

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 186.9 102.9 532.2 409.2
Income taxes on continuing operations 17.3 12.9 80.5 82.9
NET EARNINGS FROM CONTINUING OPERATIONS 169.6 90.0 451.7 326.3

Less: net loss attributable to non-controlling interests (0.3 ) (0.2 ) (0.9 ) (1.2 )

NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE
TO COMMON SHAREOWNERS 169.9 90.2 452.6 327.5

(Loss) earnings from discontinued operations before income taxes (23.4 ) 40.8 (33.0 ) 98.1
Income tax (benefit) expense on discontinued operations (19.5 ) 15.8 (14.6 ) 33.8
NET (LOSS) EARNINGS FROM DISCONTINUED OPERATIONS (3.9 ) 25.0 (18.4 ) 64.3

NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS $ 166.0 $ 115.2 $ 434.2 $ 391.8


BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Continuing operations $ 1.10 $ 0.55 $ 2.92 $ 2.00
Discontinued operations (0.02 ) 0.15 (0.12 ) 0.39
Total basic earnings per share of common stock $ 1.07 $ 0.71 $ 2.80 $ 2.39

DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Continuing operations $ 1.07 $ 0.54 $ 2.85 $ 1.95
Discontinued operations (0.02 ) 0.15 (0.12 ) 0.38
Total diluted earnings per share of common stock $ 1.04 $ 0.69 $ 2.74 $ 2.34

DIVIDENDS PER SHARE $ 0.50 $ 0.49 $ 1.48 $ 1.31

AVERAGE SHARES OUTSTANDING (in thousands)
Basic 155,043 162,990 155,140 163,835
Diluted 158,925 166,043 158,717 167,568


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)

September 28, December 29,
2013 2012

ASSETS
Cash and cash equivalents $ 469.1 $ 716.0
Accounts and notes receivable, net 1,936.4 1,525.8
Inventories, net 1,629.5 1,304.6
Assets held for sale 15.0 171.7
Other current assets 381.2 393.2
Total current assets 4,431.2 4,111.3
Property, plant and equipment, net 1,455.4 1,329.9
Goodwill and other intangibles, net 10,688.8 9,947.0
Other assets 448.3 455.8
Total assets $ 17,023.7 $ 15,844.0


LIABILITIES AND SHAREOWNERS' EQUITY
Short-term borrowings $ 1,220.1 $ 11.5
Accounts payable 1,625.9 1,345.9
Accrued expenses 1,097.8 1,680.0
Liabilities held for sale 5.0 37.3
Total current liabilities 3,948.8 3,074.7
Long-term debt 3,396.9 3,526.5
Other long-term liabilities 2,659.7 2,515.7
Stanley Black & Decker, Inc. shareowners' equity 6,936.9 6,667.1
Non-controlling interests' equity 81.4 60.0
Total liabilities and equity $ 17,023.7 $ 15,844.0


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)

THIRD QUARTER YEAR TO DATE

2013 2012 2013 2012
OPERATING ACTIVITIES
Net earnings from continuing operations $ 169.6 $ 90.0 $ 451.7 $ 326.3
Net (loss) earnings from discontinued operations (3.9 ) 25.0 (18.4 ) 64.3
Depreciation and amortization 108.8 105.8 322.7 330.6
Changes in working capital1 (244.2 ) (174.8 ) (371.6 ) (286.0 )
Other 69.3 105.2 (248.1 ) (17.1 )
Net cash provided by operating activities 99.6 151.2 136.3 418.1


INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures (94.2 ) (89.0 ) (262.1 ) (259.5 )
Proceeds from sale of business / assets 1.0 2.3 96.5 8.6
Acquisitions, net of cash acquired (16.7 ) (106.4 ) (926.6 ) (695.1 )
Proceeds from long-term borrowings - 729.4 - 729.4
Premium paid on debt extinguishment - (91.0 ) - (91.0 )
Proceeds from issuances of common stock 32.3 27.4 138.7 102.9
Net short-term (repayments) borrowings (70.9 ) 527.4 1,199.5 1,316.3
Cash dividends on common stock (77.5 ) (82.5 ) (235.0 ) (221.3 )
Payments on long-term debt (0.6 ) (900.9 ) (1.7 ) (1,222.0 )
Purchases of common stock for treasury (7.8 ) - (32.6 ) (217.8 )
Payment on forward stock purchase contract - - (350.0 ) -
Other 42.2 23.8 (9.9 ) (6.0 )
Net cash (used in) provided by investing and financing activities (192.2 ) 40.5 (383.2 ) (555.5 )

(Decrease) Increase in Cash and Cash Equivalents (92.6 ) 191.7 (246.9 ) (137.4 )

Cash and Cash Equivalents, Beginning of Period 561.7 577.8 716.0 906.9

Cash and Cash Equivalents, End of Period $ 469.1 $ 769.5 $ 469.1 $ 769.5



1
The change in working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)


THIRD QUARTER YEAR TO DATE

2013 2012 2013 2012
NET SALES

Construction & DIY $ 1,387.5 $ 1,315.7 $ 4,025.7 $ 3,819.1
Industrial 771.4 618.0 2,273.1 1,909.1
Security 600.4 583.5 1,796.4 1,760.2
Total $ 2,759.3 $ 2,517.2 $ 8,095.2 $ 7,488.4


SEGMENT PROFIT
Construction & DIY $ 203.9 $ 186.9 $ 588.8 $ 532.2
Industrial 109.2 94.6 307.5 314.2
Security 61.4 83.1 173.5 224.4
Segment Profit 374.5 364.6 1,069.8 1,070.8
Corporate Overhead (56.4 ) (61.9 ) (179.1 ) (184.7 )
Total $ 318.1 $ 302.7 $ 890.7 $ 886.1


Segment Profit as a Percentage of Net Sales
Construction & DIY 14.7 % 14.2 % 14.6 % 13.9 %
Industrial 14.2 % 15.3 % 13.5 % 16.5 %
Security 10.2 % 14.2 % 9.7 % 12.7 %
Segment Profit 13.6 % 14.5 % 13.2 % 14.3 %
Corporate Overhead (2.0 %) (2.5 %) (2.2 %) (2.5 %)
Total 11.5 % 12.0 % 11.0 % 11.8 %


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

THIRD QUARTER 2013
Reported
Merger &
Acquisition-
Related and
Other
Charges1
Normalized3

Gross margin $ 987.7 $ 5.3 $ 993.0
% of Net Sales 35.8 % 36.0 %

Selling, general and administrative 669.6 (31.9 ) 637.7
% of Net Sales 24.3 % 23.1 %

Operating margin 318.1 37.2 355.3
% of Net Sales 11.5 % 12.9 %

Earnings from continuing operations before income taxes 186.9 67.2 254.1

Income taxes on continuing operations 17.3 16.0 33.3

Net earnings from continuing operations 169.9 51.3 221.2

Diluted earnings per share of common stock $ 1.07 $ 0.32 $ 1.39



1
Merger and acquisition-related and other charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.

THIRD QUARTER 2012
Reported
Merger &
Acquisition-
Related and
Other
Charges2
Normalized3

Gross margin $ 911.9 $ 11.7 $ 923.6
% of Net Sales 36.2 % 36.7 %

Selling, general and administrative 609.2 (38.9 ) 570.3
% of Net Sales 24.2 % 22.7 %

Operating margin 302.7 50.6 353.3
% of Net Sales 12.0 % 14.0 %

Earnings from continuing operations before income taxes 102.9 157.3 260.2

Income taxes on continuing operations 12.9 44.6 57.5

Net earnings from continuing operations 90.2 112.7 202.9

Diluted earnings per share of common stock $ 0.54 $ 0.68 $ 1.22



2
Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges, integration costs, as well as cost containment charges. Other charges relate to the loss on extinguishment of debt.

3
The normalized 2013 and 2012 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges as well as charges associated with the loss on extinguishment of debt.


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

YEAR TO DATE 2013
Reported
Merger &
Acquisition-
Related and
Other
Charges1
Normalized3

Gross margin $ 2,902.2 26.4 $ 2,928.6
% of Net Sales 35.9 % 36.2 %

Selling, general and administrative 2,011.5 (90.3 ) 1,921.2
% of Net Sales 24.8 % 23.7 %

Operating margin 890.7 116.7 1,007.4
% of Net Sales 11.0 % 12.4 %

Earnings from continuing operations before income taxes 532.2 178.6 710.8

Income taxes on continuing operations 80.5 50.0 130.5

Net earnings from continuing operations 452.6 128.6 581.2

Diluted earnings per share of common stock $ 2.85 $ 0.81 $ 3.66



1
Merger and acquisition-related and other charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs, as well as a restructuring reversal due to the termination of a previously approved restructuring action.

YEAR TO DATE 2012
Reported
Merger &
Acquisition-
Related and
Other
Charges2
Normalized3

Gross margin $ 2,749.4 18.3 $ 2,767.7
% of Net Sales 36.7 % 37.0 %

Selling, general and administrative 1,863.3 (99.8 ) 1,763.5
% of Net Sales 24.9 % 23.5 %

Operating margin 886.1 118.1 1,004.2
% of Net Sales 11.8 % 13.4 %

Earnings from continuing operations before income taxes 409.2 310.9 720.1

Income taxes on continuing operations 82.9 76.5 159.4

Net earnings from continuing operations 327.5 234.4 561.9

Diluted earnings per share of common stock $ 1.95 $ 1.40 $ 3.35



2
Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges, integration costs, as well as cost containment charges. Other charges relate to the loss on extinguishment of debt.

3
The normalized 2013 and 2012 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges as well as charges associated with the loss on extinguishment of debt.


STANLEY BLACK & DECKER INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP CASH FLOW FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)

THIRD QUARTER 2013
Reported
Merger &
Acquisition-
Related
Charges and
Payments1
Normalized4


Free Cash Flow Computation3

Net cash provided by operating activities $ 99.6 52.7 $ 152.3
Less: capital and software expenditures (94.2 ) 12.9 (81.3 )
Free Cash Inflow (before dividends) $ 5.4 $ 71.0


1
Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.


THIRD QUARTER 2012
Reported
Merger &
Acquisition-
Related
Charges and
Payments2
Normalized4


Free Cash Flow Computation3

Net cash provided by operating activities $ 151.2 83.5 $ 234.7
Less: capital and software expenditures (89.0 ) 23.2 (65.8 )
Free Cash Inflow (before dividends) $ 62.2 $ 168.9



2
Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges, integration costs, as well as cost containment charges.


3, 4
Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. Normalized cash flow and free cash flow, as reconciled above, are considered meaningful pro forma metrics to aid the understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities.


STANLEY BLACK & DECKER INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP CASH FLOW FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)

YEAR TO DATE 2013
Reported
Merger &
Acquisition-
Related
Charges and
Payments1
Normalized4


Free Cash Flow Computation3

Net cash provided by operating activities $ 136.3 223.7 $ 360.0
Less: capital and software expenditures (262.1 ) 58.6 (203.5 )
Free Cash (Outflow) Inflow (before dividends) $ (125.8 ) $ 156.5


1
Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.


YEAR TO DATE 2012
Reported
Merger &
Acquisition-
Related
Charges and
Payments2
Normalized4


Free Cash Flow Computation3

Net cash provided by operating activities $ 418.1 212.2 $ 630.3
Less: capital and software expenditures (259.5 ) 92.0 (167.5 )
Free Cash Inflow (before dividends) $ 158.6 $ 462.8



2
Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges, integration costs, as well as cost containment charges.


3, 4
Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. Normalized cash flow and free cash flow, as reconciled above, are considered meaningful pro forma metrics to aid the understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities.


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)


THIRD QUARTER 2013
Reported
Merger &
Acquisition-
Related
Charges1
Normalized3
SEGMENT PROFIT

Construction & DIY $ 203.9 $ 3.1 $ 207.0
Industrial 109.2 2.3 111.5
Security 61.4 11.9 73.3
Segment Profit 374.5 17.3 391.8
Corporate Overhead (56.4 ) 19.9 (36.5 )
Total $ 318.1 $ 37.2 $ 355.3


Segment Profit as a Percentage of Net Sales
Construction & DIY 14.7 % 14.9 %
Industrial 14.2 % 14.5 %
Security 10.2 % 12.2 %
Segment Profit 13.6 % 14.2 %
Corporate Overhead (2.0 %) (1.3 %)
Total 11.5 % 12.9 %



1
Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.

THIRD QUARTER 2012
Reported
Merger &
Acquisition-
Related
Charges2
Normalized3
SEGMENT PROFIT

Construction & DIY $ 186.9 $ 17.2 $ 204.1
Industrial 94.6 0.6 95.2
Security 83.1 10.3 93.4
Segment Profit 364.6 28.1 392.7
Corporate Overhead (61.9 ) 22.5 (39.4 )
Total $ 302.7 $ 50.6 $ 353.3


Segment Profit as a Percentage of Net Sales
Construction & DIY 14.2 % 15.5 %
Industrial 15.3 % 15.4 %
Security 14.2 % 16.0 %
Segment Profit 14.5 % 15.6 %
Corporate Overhead (2.5 %) (1.6 %)
Total 12.0 % 14.0 %


2
Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges and integration costs.

3
The normalized 2013 and 2012 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s segment profit results aside from the material impact of the merger and acquisition-related charges.


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)


YEAR TO DATE 2013
Reported
Merger &
Acquisition-
Related
Charges1
Normalized3
SEGMENT PROFIT

Construction & DIY $ 588.8 $ 9.2 $ 598.0
Industrial 307.5 20.8 328.3
Security 173.5 27.1 200.6
Segment Profit 1,069.8 57.1 1,126.9
Corporate Overhead (179.1 ) 59.6 (119.5 )
Total $ 890.7 $ 116.7 $ 1,007.4


Segment Profit as a Percentage of Net Sales
Construction & DIY 14.6 % 14.9 %
Industrial 13.5 % 14.4 %
Security 9.7 % 11.2 %
Segment Profit 13.2 % 13.9 %
Corporate Overhead (2.2 %) (1.5 %)
Total 11.0 % 12.4 %



1
Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs.

YEAR TO DATE 2012
Reported
Merger &
Acquisition-
Related
Charges2
Normalized3
SEGMENT PROFIT

Construction & DIY $ 532.2 $ 31.0 $ 563.2
Industrial 314.2 3.6 317.8
Security 224.4 25.9 250.3
Segment Profit 1,070.8 60.5 1,131.3
Corporate Overhead (184.7 ) 57.6 (127.1 )
Total $ 886.1 $ 118.1 $ 1,004.2


Segment Profit as a Percentage of Net Sales
Construction & DIY 13.9 % 14.7 %
Industrial 16.5 % 16.6 %
Security 12.7 % 14.2 %
Segment Profit 14.3 % 15.1 %
Corporate Overhead (2.5 %) (1.7 %)
Total 11.8 % 13.4 %


2
Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges and integration costs.

3
The normalized 2013 and 2012 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s segment profit results aside from the material impact of the merger and acquisition-related charges.



.
.
Contact:.
.
Stanley Black & Decker
Greg Waybright, 860-827-3833
👍️0
dmoskowitz dmoskowitz 12 years ago
The spectrum brands + Stanley Black and Decker can't happen...We know what sythetic instruments Tong Long was peddling over their in SA Asia...
BAD NEWS

Gonna Kill the Stanley Deal.......Yipeeeeeee

Dolly
👍️0
dmoskowitz dmoskowitz 12 years ago
Stanley Black & Decker hidden liabilities...


This deal with Spectrum Brands is a Sham. Ever wonder why Spectrum would "buy" their unit?

Well look into the hedge funds who are behind the subsidaries....

Serious problems guys.

http://cycleofstructurednonsense.blogspot.com/2012/10/the-bear-case-against-philip-falcone.html
👍️0
Drmicrocap Drmicrocap 12 years ago
http://finance.yahoo.com/news/stanley-black-decker-reports-2q-100000568.html
👍️0
Penny Roger$ Penny Roger$ 12 years ago
<<< $SWK Links! >>> ~ MAC's Quick DD Links without the charts.




PennyStockTweets ~ http://www.pennystocktweets.com/stocks/profile/SWK


OTC Markets Company Info ~ http://www.otcmarkets.com/stock/SWK/company-info
OTC Markets Charts ~ http://www.otcmarkets.com/stock/SWK/chart
OTC Markets Quote ~ http://www.otcmarkets.com/stock/SWK/quote
OTC Markets News ~ http://www.otcmarkets.com/stock/SWK/news
OTC Markets Financials ~ http://www.otcmarkets.com/stock/SWK/financials
OTC Markets Short Sales ~ http://www.otcmarkets.com/stock/SWK/short-sales
OTC Markets Insider Disclosure ~ http://www.otcmarkets.com/stock/SWK/insider-transactions
OTC Markets Research Reports ~ http://www.otcmarkets.com/stock/SWK/research


Google Finance Summary ~ http://www.google.com/finance?q=SWK
Google Finance News ~ http://www.google.com/finance/company_news?q=SWK
Google Finance Option chain ~ http://www.google.com/finance/option_chain?q=SWK
Google Finance Financials ~ http://www.google.com/finance?q=SWK&fstype=ii#
Google Finance Historical prices Daily ~ http://www.google.com/finance/historical?q=SWK
Google Finance Historical prices Weekly ~ http://www.google.com/finance/historical?q=SWK&histperiod=weekly#


Y! < Company >
Y! Profile ~ http://finance.yahoo.com/q/pr?s=SWK+Profile
Y! Key Stat's ~ http://finance.yahoo.com/q/ks?s=SWK+Key+Statistics
Y! Headlines ~ http://finance.yahoo.com/q/h?s=SWK+Headlines
Y! Summary ~ http://finance.yahoo.com/q?s=SWK
Y! Historical Prices ~ http://finance.yahoo.com/q/hp?s=SWK+Historical+Prices
Y! Order Book ~ http://finance.yahoo.com/q/ecn?s=SWK+Order+Book
Y! Message Boards ~ http://messages.finance.yahoo.com/mb/SWK
Y! Market Pulse ~ http://finance.yahoo.com/marketpulse/SWK
Y! Technical Analysis ~ http://finance.yahoo.com/q/ta?s=SWK+Basic+Tech.+Analysis
Y! < Analyst Coverage >
Y! Analyst Opinion ~ http://finance.yahoo.com/q/ao?s=SWK+Analyst+Opinion
Y! Analyst Estimates ~ http://finance.yahoo.com/q/ae?s=SWK+Analyst+Estimates
Y! Research Reports ~ http://finance.yahoo.com/q/rr?s=SWK+Research+Reports
Y! Star Analysts ~ http://finance.yahoo.com/q/sa?s=SWK+Star+Analysts
Y! < Ownership >
Y! Major Holders ~ http://finance.yahoo.com/q/mh?s=SWK+Major+Holders
Y! Insider Transactions ~ http://finance.yahoo.com/q/it?s=SWK+Insider+Transactions
Y! Insider Roster ~ http://finance.yahoo.com/q/ir?s=SWK+Insider+Roster
Y! < Financials >
Y! Income Statement ~ http://finance.yahoo.com/q/is?s=SWK+Income+Statement&annual
Y! Balance Sheet ~ http://finance.yahoo.com/q/bs?s=SWK+Balance+Sheet&annual
Y! Cash Flow ~ http://finance.yahoo.com/q/cf?s=SWK+Cash+Flow&annual


FINVIZ ~ http://finviz.com/quote.ashx?t=SWK&ty=c&ta=0&p=d


Investorshub Trades ~ http://ih.advfn.com/p.php?pid=trades&symbol=SWK
Investorshub Board Search ~ http://investorshub.advfn.com/boards/getboards.aspx?searchstr=SWK
Investorshub PostStream ~ http://investorshub.advfn.com/boards/poststream.aspx?ticker=SWK
Investorshub Messages ~ http://investorshub.advfn.com/boards/msgsearch.aspx?SearchStr=SWK
Investorshub Videos ~ http://ih.advfn.com/p.php?pid=ihvse&ihvqu=SWK
Investorshub News ~ http://ih.advfn.com/p.php?pid=news&btn=s_ok&ctl00%24sb3%24tbq1=Get+Quote&as_values_IH=&ctl00%24sb3%24stb1=Search+iHub&symbol=SWK&s_ok=OK&from_month=3&from_day=15&from_year=2012&order=desc&selsrc%5B%5D=prnca&selsrc%5B%5D=prnus&selsrc%5B%5D=zacks&selsrc%5B%5D=money2&selsrc%5B%5D=djn&selsrc%5B%5D=bw&selsrc%5B%5D=globe&selsrc%5B%5D=edgar&selsrc%5B%5D=mwus&force=1&last_ts=1331855999&p_n=1&p_count=&p_ts=1331794260


CandlestickChart ~ http://www.candlestickchart.com/cgi/chart.cgi?symbol=SWK&exchange=US


Barchart Quote ~ http://barchart.com/quotes/stocks/SWK?
Barchart Detailed Quote ~ http://barchart.com/detailedquote/stocks/SWK
Barchart Options Quotes ~ http://barchart.com/options/stocks/SWK
Barchart Technical Chart ~ http://barchart.com/charts/stocks/SWK&style=technical
Barchart Interactive Chart ~ http://barchart.com/charts/stocks/SWK&style=interactive
Barchart Technical Analysis ~ http://barchart.com/technicals/stocks/SWK
Barchart Trader's Cheat Sheet ~ http://barchart.com/cheatsheet.php?sym=SWK
Barchart Barchart Opinion ~ http://barchart.com/opinions/stocks/SWK
Barchart Snapshot Opinion ~ http://barchart.com/snapopinion/stocks/SWK
Barchart News Headlines ~ http://barchart.com/news/stocks/SWK
Barchart Profile ~ http://barchart.com/profile//SWK
Barchart Key Statistics ~ http://barchart.com/profile.php?sym=SWK&view=key_statistics


OTC: American Bulls ~ http://www.americanbulls.com/StockPage.asp?CompanyTicker=SWK&MarketTicker=OTC&TYP=S
NASDAQ: American Bulls ~ http://www.americanbulls.com/StockPage.asp?CompanyTicker=SWK&MarketTicker=NASD&TYP=S
NYSE: American Bulls ~ http://www.americanbulls.com/StockPage.asp?CompanyTicker=SWK&MarketTicker=NYSE&Typ=S


Marketwatch Profile ~ http://www.marketwatch.com/investing/stock/SWK/profile
Marketwatch Analyst Estimates ~ http://www.marketwatch.com/investing/stock/SWK/analystestimates
Marketwatch Historical Quotes ~ http://www.marketwatch.com/investing/stock/SWK/historical
Marketwatch Financials ~ http://www.marketwatch.com/investing/stock/SWK/financials
Marketwatch Overview ~ http://www.marketwatch.com/investing/stock/SWK
Marketwatch SEC Filings ~ http://www.marketwatch.com/investing/stock/SWK/secfilings
Marketwatch Picks ~ http://www.marketwatch.com/investing/stock/SWK/picks
Marketwatch Hulbert ~ http://www.marketwatch.com/investing/stock/SWK/hulbert
Marketwatch Insider Actions ~ http://www.marketwatch.com/investing/stock/SWK/insideractions
Marketwatch Options ~ http://www.marketwatch.com/investing/stock/SWK/options
Marketwatch Charts ~ http://www.marketwatch.com/investing/stock/SWK/charts
Marketwatch News ~ http://bigcharts.marketwatch.com/news/symbolsearch/symbolnews.asp?news=markadv&symb=SWK&sid=1795093&framed=False


The Lion ~ http://thelion.com/bin/aio_msg.cgi?cmd=search&msg=&si=1&tw=1&tt=1&rb=1&ih=1&fo=1&iv=1&yf=1&sa=1&fb=1&gg=1&symbol=SWK


Search NYSE ~ http://www.nyse.com/about/listed/lcddata.html?ticker=SWK


StockTA ~ http://www.stockta.com/cgi-bin/analysis.pl?symb=SWK&num1=567&cobrand=&mode=stock


StockHouse ~ http://www.stockhouse.com/financialtools/sn_overview.aspx?qm_symbol=SWK
StockHouse Delayed LII ~ http://www.stockhouse.com/financialtools/sn_level2.aspx?qm_page=46140&qm_symbol=SWK


AlphaTrade ~ http://tools.alphatrade.com/index.php?t1=mc_quote_module&t2=mc_quote_module2&t3=historical&template=historical2html&sym=SWK&client_id=2740&a_width=680&a_height=1000&language=english&showVol=1&chtype=8


Reuters ~ http://www.reuters.com/finance/stocks/companyOfficers?symbol=SWK.PK&WTmodLOC=C4-Officers-5


StockWatch ~ http://www.stockwatch.com/Quote/Detail.aspx?symbol=SWK®ion=U


Search NASDAQ ~ http://www.nasdaq.com/symbol/SWK
NASDAQ Divy History ~ http://www.nasdaq.com/symbol/SWK/dividend-history
NASDAQ Short Interest ~ http://www.nasdaq.com/symbol/SWK/short-interest
NASDAQ Institutional Ownership ~ http://www.nasdaq.com/symbol/SWK/institutional-holdings
NASDAQ FlashQuotes ~ http://www.nasdaq.com/aspx/flashquotes.aspx?symbol=SWK&selected=SWK
NASDAQ InfoQuotes ~ http://www.nasdaq.com/aspx/infoquotes.aspx?symbol=SWK&selected=SWK
NASDAQ After Hours Quote ~ http://www.nasdaq.com/symbol/SWK/after-hours
NASDAQ Pre-Market Quote ~ http://www.nasdaq.com/symbol/SWK/premarket
NASDAQ Historical Quote ~ http://www.nasdaq.com/symbol/SWK/historical
NASDAQ Option Chain ~ http://www.nasdaq.com/symbol/SWK/option-chain
NASDAQ Company Headlines ~ http://www.nasdaq.com/symbol/SWK/news-headlines
NASDAQ Press Releases ~ http://www.nasdaq.com/symbol/SWK/news-headlines
NASDAQ Sentiment ~ http://www.nasdaq.com/symbol/SWK/sentiment
NASDAQ Analyst Summary ~ http://www.nasdaq.com/symbol/SWK/analyst-research
NASDAQ Guru Analysis~ http://www.nasdaq.com/symbol/SWK/guru-analysis
NASDAQ Stock Report ~ http://www.nasdaq.com/symbol/SWK/stock-report
NASDAQ Competitors ~ http://www.nasdaq.com/symbol/SWK/competitors
NASDAQ Stock Consultant ~ http://www.nasdaq.com/symbol/SWK/stock-consultant
NASDAQ Stock Comparison ~ http://www.nasdaq.com/symbol/SWK/stock-comparison
NASDAQ Call Transcripts ~ http://www.nasdaq.com/symbol/SWK/call-transcripts
NASDAQ Annual Reports ~ http://www.nasdaq.com/aspx/annualreport.aspx?symbol=SWK&selected=SWK
NASDAQ Financials ~ http://www.nasdaq.com/symbol/SWK/financials
NASDAQ Revenue & Earnings Per Share (EPS) ~ http://www.nasdaq.com/symbol/SWK/revenue-eps
NASDAQ SEC Filings ~ http://www.nasdaq.com/symbol/SWK/sec-filings
NASDAQ Ownership Summary ~ http://www.nasdaq.com/symbol/SWK/ownership-summary
NASDAQ Institutional Ownership ~ http://www.nasdaq.com/symbol/SWK/institutional-holdings
NASDAQ (SEC Form 4) ~
--------- All Trades ~ http://www.nasdaq.com/symbol/SWK/insider-trades
--------- Buys ~ http://www.nasdaq.com/symbol/SWK/insider-trades/buys
--------- Sells ~ http://www.nasdaq.com/symbol/SWK/insider-trades/sells


The Motley Fool ~ http://caps.fool.com/Ticker/SWK.aspx
The Motley Fool Earnings/Growth ~ http://caps.fool.com/Ticker/SWK/EarningsGrowthRates.aspx?source=itxsittst0000001
The Motley Fool Ratios ~ http://caps.fool.com/Ticker/SWK/Ratios.aspx?source=itxsittst0000001
The Motley Fool Stats ~ http://caps.fool.com/Ticker/SWK/Stats.aspx?source=icasittab0000006
The Motley Fool Historical ~ http://caps.fool.com/Ticker/SWK/Historical.aspx?source=icasittab0000004
The Motley Fool Scorecard ~ http://caps.fool.com/Ticker/SWK/Scorecard.aspx?source=icasittab0000003
The Motley Fool Statements ~ http://caps.fool.com/Ticker/SWK/Statements.aspx?source=icasittab0000009


MSN Money ~ http://investing.money.msn.com/investments/stock-ratings?symbol=SWK


YCharts ~ http://ycharts.com/companies/SWK
YCharts Performance ~ http://ycharts.com/companies/SWK/performance
YCharts Dashboard ~ http://ycharts.com/companies/SWK/dashboard


InsideStocks Opinion ~ http://www.insidestocks.com/texpert.asp?sym=SWK&code=XDAILY
InsideStocks Profile ~ http://www.insidestocks.com/profile.asp?sym=SWK&code=XDAILY
InsideStocks Quote ~ http://www.insidestocks.com/quote.asp?sym=SWK&code=XDAILY
InsideStocks Projection ~ http://charts3.barchart.com/procal.asp?sym=SWK


Zacks Quote ~ http://www.zacks.com/stock/quote/SWK
Zacks Estimates ~ http://www.zacks.com/research/report.php?type=estimates&t=SWK
Zacks Company Reports ~ http://www.zacks.com/research/report.php?type=report&t=SWK


Knobias ~ http://knobias.10kwizard.com/files.php?sym=SWK


StockScores ~ http://www.stockscores.com/quickreport.asp?ticker=SWK


Trade-Ideas ~ http://www.trade-ideas.com/StockInfo/SWK/HOT_TOPIC.html


Morningstar ~ http://performance.morningstar.com/stock/performance-return.action?region=USA&t=SWK&culture=en-US
Morningstar Shareholders ~ http://investors.morningstar.com/ownership/shareholders-overview.html?t=SWK®ion=USA&culture=en-us
Morningstar Transcripts~ http://www.morningstar.com/earnings/NoTranscript.aspx?t=SWK®ion=USA
Morningstar Key Ratios ~ http://financials.morningstar.com/ratios/r.html?t=SWK®ion=USA&culture=en-US
Morningstar Executive Compensation ~ http://insiders.morningstar.com/trading/executive-compensation.action?t=SWK®ion=USA&culture=en-us
Morningstar Valuation ~ http://financials.morningstar.com/valuation/price-ratio.html?t=SWK®ion=USA&culture=en-us


CCBN (Thompson Reuters) ~ http://ccbn.aol.com/company.asp?client=aol&ticker=SWK


TradingMarkets ~ http://pr.tradingmarkets.com/?lid=leftPRbox&sym=SWK


OTCBB ~ http://www.otcbb.com/asp/SiteSearch.asp?Criteria=SWK&searcharea=e&image1.x=0&image1.y=0


Insidercow ~ http://www.insidercow.com/history/company.jsp?company=SWK&B1=Search%21


Forbes News ~ http://search.forbes.com/search/find?tab=searchtabgeneraldark&MT=SWK
Forbes Press Releases ~ http://search.forbes.com/search/find?&start=1&tab=searchtabgeneraldark&MT=SWK&pub=businesswire,prnewswire&searchResults=pressRelease&tag=pr&premium=on
Forbes Web ~ http://search.forbes.com/search/web?MT=UNGS&start=1&max=10&searchResults=web&tag=web&sort=null


YouTube Symbol Search ~ http://www.youtube.com/results?search_query=SWK


Buy-Ins ~ http://www.buyins.net/tools/symbol_stats.php?sym=SWK


Quotemedia ~ http://www.quotemedia.com/results.php?qm_page=47556&qm_symbol=SWK


Earnings Whispers ~ http://www.earningswhispers.com/stocks.asp?symbol=SWK

Bloomberg Snapshot ~ http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=SWK
Bloomberg People ~ http://investing.businessweek.com/research/stocks/people/people.asp?ticker=SWK

Financial Times ~ http://markets.ft.com/Research/Markets/Tearsheets/Summary?s=SWK

Investorpoint ~ http://www.investorpoint.com/ enter "SWK" and click search.

Hotstocked ~ http://www.hotstocked.com/ enter "SWK" and click search.

Raging Bull ~ http://ragingbull.quote.com/mboard/boards.cgi?board=SWK

Hoovers ~ http://www.hoovers.com/search/company-search-results/100003765-1.html?type=company&term=SWK

DD Machine ~ http://www.ddmachine.com/default.asp?m=stocktool_frame.asp?symbol=SWK

SEC Form 4 ~ http://www.secform4.com/insider/showhistory.php?cik=SWK

OTCBB Pulse ~ http://www.otcbbpulse.com/cgi-bin/pulsequote.cgi?symbol=SWK

Failures To Deliver ~ http://failurestodeliver.com/default2.aspx enter "SWK" and click search.

http://www.coordinatedlegal.com/SecretaryOfState.html

http://regsho.finra.org/regsho-Index.html

http://www.shortsqueeze.com/?symbol=SWK&submit=Short+Quote%99



DTCC (PENSON/TDA) Check - (otc and pinks) - Note ~ I did not check for this chart blast. However, I try and help you to do so with the following links.
IHUB DTCC BOARD SEARCH #1 http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=18682&srchyr=2011&SearchStr=SWK
IHUB DTCC BOARD SEARCH #2: http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=14482&srchyr=2011&SearchStr=SWK
Check those searches for recent SWK mentions. If SWK is showing up on older posts and not on new posts found in link below, The DTCC issues may have been addressed and fixed. Always call the broker if your security turns up on any DTCC/PENSON list.
http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=18682&srchyr=2011&SearchStr=Complete+list
For a complete list see the pinned threads at the top here ---> http://tinyurl.com/TWO-OLD-FARTS



MACDlinks
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Penny Roger$ Penny Roger$ 12 years ago
~ Wednesday! $SWK ~ Q1 Earnings posted, pending or coming soon! In Charts and Links Below!

~ $SWK ~ Earnings expected on Wednesday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.








http://stockcharts.com/h-sc/ui?s=SWK&p=D&b=3&g=0&id=p88783918276&a=237480049




http://stockcharts.com/h-sc/ui?s=SWK&p=W&b=3&g=0&id=p54550695994



~ Google Finance: http://www.google.com/finance?q=SWK
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=SWK#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=SWK+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=SWK
Finviz: http://finviz.com/quote.ashx?t=SWK
~ BusyStock: http://busystock.com/i.php?s=SWK&v=2


<<<<<< http://www.earningswhispers.com/stocks.asp?symbol=SWK >>>>>>



http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916

*If the earnings date is in error please ignore error. I do my best.
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just2 just2 12 years ago
SWK into Solar. I found this. Have a look. One on CNN. http://ireport.cnn.com/docs/DOC-758139

Then this. @SunFlareSystems @news Update. Finalizes Letter of Intent with @GearOutHere SOS in a box now selling on @amazon http://www.amazon.co.uk/gp/product/B007J... With our European capabilitys. Press Release to follow at www.sunflaresystems.com
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Drmicrocap Drmicrocap 12 years ago
http://finance.yahoo.com/news/Stanley-Black-Decker-Reports-bw-2434221831.html?x=0
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Katman1 Katman1 13 years ago
need to get this board up and Moving
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informyou informyou 13 years ago
This article is suggesting that Stanley Black & Decker might be worthwhile positive trade.

I agree with the reasoning (and the mention of Sozzi):

http://www.benzinga.com/trading-ideas/long-ideas/11/02/884412/why-stanley-black-decker-swk
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