Exhibit 99.1
ITEM 6. SELECTED FINANCIAL DATA
The selected financial data below has been recast in all years for the adoption of FSP APB 14-1, SFAS 160 and FSP EITF 03-6-1 as further detailed in Note A of Item 8. The Company made significant acquisitions during the five-year period presented below that affect comparability of results. Refer to Note F, Acquisitions, of the Notes to Consolidated Financial Statements in Item 8 for further information. Additionally, as detailed in Note U, Discontinued Operations, and prior year 10-K filings, results in all years have been recast to remove the effects of certain discontinued operations for comparability (in millions, except per share amounts):
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| | 2008 | | | 2007 | | | 2006 | | | 2005 | | | 2004 | |
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Continuing Operations: | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | 4,426 | | | $ | 4,360 | | | $ | 3,897 | | | $ | 3,183 | | | $ | 2,930 | |
Net earnings attributable to The Stanley Works | | $ | 219 | | | $ | 321 | | | $ | 279 | | | $ | 262 | | | $ | 229 | |
Basic earnings per share: | | | | | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 2.77 | | | $ | 3.89 | | | $ | 3.40 | | | $ | 3.14 | | | $ | 2.79 | |
Discontinued operations | | $ | 1.11 | | | $ | 0.14 | | | $ | 0.13 | | | $ | 0.09 | | | $ | 1.68 | |
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Total basic earnings per share | | $ | 3.88 | | | $ | 4.03 | | | $ | 3.53 | | | $ | 3.23 | | | $ | 4.47 | |
Diluted earnings per share: | | | | | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 2.74 | | | $ | 3.82 | | | $ | 3.33 | | | $ | 3.07 | | | $ | 2.72 | |
Discontinued operations | | $ | 1.10 | | | $ | 0.13 | | | $ | 0.13 | | | $ | 0.08 | | | $ | 1.64 | |
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Total diluted earnings per share | | $ | 3.84 | | | $ | 3.95 | | | $ | 3.46 | | | $ | 3.16 | | | $ | 4.36 | |
Percent of net sales: | | | | | | | | | | | | | | | | | | | | |
Cost of sales | | | 62.2 | % | | | 62.1 | % | | | 63.7 | % | | | 64.1 | % | | | 63.3 | % |
Selling, general and administrative* | | | 25.0 | % | | | 23.8 | % | | | 23.9 | % | | | 22.5 | % | | | 23.2 | % |
Interest, net | | | 1.9 | % | | | 2.0 | % | | | 1.7 | % | | | 1.1 | % | | | 1.2 | % |
Other, net | | | 2.3 | % | | | 1.9 | % | | | 1.3 | % | | | 1.4 | % | | | 1.4 | % |
Earnings before income taxes | | | 6.6 | % | | | 9.8 | % | | | 9.0 | % | | | 10.8 | % | | | 10.7 | % |
Net earnings attributable to The Stanley Works | | | 4.9 | % | | | 7.4 | % | | | 7.2 | % | | | 8.2 | % | | | 7.8 | % |
Balance sheet data: | | | | | | | | | | | | | | | | | | | | |
Total assets** | | $ | 4,867 | | | $ | 4,741 | | | $ | 3,926 | | | $ | 3,545 | | | $ | 2,851 | |
Long-term debt | | $ | 1,384 | | | $ | 1,165 | | | $ | 679 | | | $ | 895 | | | $ | 482 | |
The Stanley Works Shareowners’ Equity*** | | $ | 1,706 | | | $ | 1,754 | | | $ | 1,548 | | | $ | 1,437 | | | $ | 1,229 | |
Ratios: | | | | | | | | | | | | | | | | | | | | |
Current ratio | | | 1.3 | | | | 1.4 | | | | 1.4 | | | | 2.2 | | | | 1.7 | |
Total debt to total capital | | | 48.6 | % | | | 45.4 | % | | | 39.2 | % | | | 42.6 | % | | | 32.2 | % |
Income tax rate — continuing operations | | | 24.7 | % | | | 24.9 | % | | | 19.8 | % | | | 23.4 | % | | | 26.4 | % |
Return on average equity — continuing operations | | | 12.8 | % | | | 19.5 | % | | | 18.9 | % | | | 19.8 | % | | | 21.7 | % |
Common stock data: | | | | | | | | | | | | | | | | | | | | |
Dividends per share | | $ | 1.26 | | | $ | 1.22 | | | $ | 1.18 | | | $ | 1.14 | | | $ | 1.08 | |
Equity per share at year-end | | $ | 21.63 | | | $ | 21.82 | | | $ | 18.92 | | | $ | 17.15 | | | $ | 14.92 | |
Market price per share — high | | $ | 52.18 | | | $ | 64.25 | | | $ | 54.59 | | | $ | 51.75 | | | $ | 49.33 | |
Market price per share — low | | $ | 24.19 | | | $ | 47.01 | | | $ | 41.60 | | | $ | 41.51 | | | $ | 36.42 | |
Average shares outstanding (in 000’s): | | | | | | | | | | | | | | | | | | | | |
Basic | | | 78,897 | | | | 82,313 | | | | 81,866 | | | | 83,347 | | | | 82,058 | |
Diluted | | | 79,874 | | | | 84,046 | | | | 83,704 | | | | 85,406 | | | | 84,244 | |
Other information: | | | | | | | | | | | | | | | | | | | | |
Average number of employees | | | 17,862 | | | | 17,344 | | | | 16,699 | | | | 13,605 | | | | 12,817 | |
Shareowners of record at end of year | | | 12,593 | | | | 12,482 | | | | 12,755 | | | | 13,137 | | | | 13,238 | |
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* | | SG&A is inclusive of the Provision for Doubtful Accounts |
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** | | Item includes discontinued operations in all years. |
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*** | | Shareowners’ equity was reduced by $14 million in fiscal 2007 for the adoption of FIN 48, “Accounting for Uncertainty in Income Taxes — an Interpretation of SFAS No. 109”. Shareowners’ equity as of December 30, 2006 decreased $61 million from the adoption of SFAS 158, “Employers’ Accounting for Defined Benefit Pension and Other Post-retirement Plans-an amendment of FASB Statements NO. 87, 88, 106 and 132(R)”. |
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