THE STANLEY WORKS AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, Millions of Dollars Except Per Share Amounts)
FOURTH QUARTER
YEAR TO DATE
2008
2007
2008
2007
NET SALES
$
1,085.9
$
1,138.2
$
4,426.2
$
4,360.5
COSTS AND EXPENSES
Cost of sales
693.4
713.4
2,754.8
2,707.5
Gross margin
392.5
424.8
1,671.4
1,653.0
% to Net sales
36.1
%
37.3
%
37.8
%
37.9
%
Selling, general and administrative
275.3
269.9
1,107.6
1,038.4
% to Net sales
25.4
%
23.7
%
25.0
%
23.8
%
Operating margin
117.2
154.9
563.8
614.6
% to Net sales
10.8
%
13.6
%
12.7
%
14.1
%
Other-net
34.1
19.4
104.2
87.1
Restructuring charges and asset impairments
60.5
2.4
85.5
12.8
Income from operations
22.6
133.1
374.1
514.7
Interest-net
18.3
19.5
72.8
80.1
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
4.3
113.6
301.3
434.6
Income taxes
(1.1
)
24.7
75.9
109.3
NET EARNINGS FROM CONTINUING OPERATIONS
5.4
88.9
225.4
325.3
Earnings/(Loss) from discontinued operations before income taxes
(including $3.2 million loss on fourth quarter 2008 divestiture and $126.5 million gain year –to –date 2008)
(5.8
)
3.7
132.8
16.5
Income taxes on discontinued operations
(1.5
)
0.3
44.9
5.2
NET EARNINGS FROM DISCONTINUED OPERATIONS
(4.3
)
3.4
87.9
11.3
NET EARNINGS
$
1.1
$
92.3
$
313.3
$
336.6
BASIC EARNINGS PER SHARE OF COMMON STOCK
Continuing operations
$
0.07
$
1.09
$
2.86
$
3.95
Discontinued operations
(0.06
)
0.04
1.11
0.14
Total basic earnings per share of common stock
$
0.01
$
1.13
$
3.97
$
4.09
DILUTED EARNINGS PER SHARE OF COMMON STOCK
Continuing operations
$
0.07
$
1.07
$
2.82
$
3.87
Discontinued operations
(0.06
)
0.04
1.10
0.13
Total diluted earnings per share of common stock
$
0.01
$
1.11
$
3.92
$
4.00
DIVIDENDS PER SHARE
$
0.32
$
0.31
$
1.26
$
1.22
AVERAGE SHARES OUTSTANDING (in thousands)
Basic
78,985
81,556
78,897
82,313
Diluted
79,525
83,089
79,874
84,046
1
-Page 10-
THE STANLEY WORKS AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited, Millions of Dollars)
January 3, 2009
December 29, 2007
ASSETS
Cash and cash equivalents
$
211.6
$
240.4
Accounts and notes receivable
677.7
805.7
Inventories
514.7
556.4
Other current assets
99.0
201.7
Total current assets
1,503.0
1,804.2
Property, plant and equipment, net
579.8
564.9
Goodwill and other intangibles, net
2,605.4
2,206.7
Other assets
190.9
188.4
Total assets
$
4,879.1
$
4,764.2
LIABILITIES AND SHAREOWNERS’ EQUITY
Short-term borrowings
$
227.6
$
292.8
Accounts payable
461.5
498.6
Accrued expenses
508.9
471.3
Total current liabilities
1,198.0
1,262.7
Long-term debt
1,418.1
1,212.1
Other long-term liabilities
575.0
560.9
Shareowners’ equity
1,688.0
1,728.5
Total liabilities and equity
$
4,879.1
$
4,764.2
2
-Page 11-
THE STANLEY WORKS AND SUBSIDIARIES SUMMARY OF CASH FLOW ACTIVITY (Unaudited, Millions of Dollars)
FOURTH QUARTER
YEAR TO DATE
2008
2007
2008
2007
OPERATING ACTIVITIES
Net earnings
$
1.1
$
92.3
$
313.3
$
336.6
Depreciation and amortization
54.5
42.1
183.0
162.2
Net (gain) loss from sale of businesses
1.9
—
(84.0
)
—
Changes in working capital
127.4
106.1
122.7
51.7
Other
18.1
(22.6
)
25.1
(6.4
)
Net cash provided by operating activities
203.0
217.9
560.1
544.1
INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures
(58.9
)
(31.9
)
(140.8
)
(86.9
)
Net proceeds from sales of businesses
(8.0
)
—
157.8
—
Business acquisitions and asset disposals
(207.5
)
(5.8
)
(570.7
)
(624.9
)
Proceeds from long-term borrowings
248.0
0.1
248.2
529.9
Cash dividends on common stock
(25.2
)
(24.9
)
(99.0
)
(99.8
)
Other
(239.1
)
(195.6
)
(184.4
)
(198.6
)
Net cash used in investing and financing activities
(290.7
)
(258.1
)
(588.9
)
(480.3
)
Increase (decrease) in Cash and Cash Equivalents
(87.7
)
(40.2
)
(28.8
)
63.8
Cash and Cash Equivalents, Beginning of Period
299.3
280.6
240.4
176.6
Cash and Cash Equivalents, End of Period
$
211.6
$
240.4
$
211.6
$
240.4
Free Cash Flow Computation
Operating cash flow
$
203.0
$
217.9
$
560.1
$
544.1
Less: capital and software expenditures
(58.9
)
(31.9
)
(140.8
)
(86.9
)
Free Cash Flow (before dividends)
$
144.1
$
186.0
$
419.3
$
457.2
Free cash flow is defined as cash flow from operations less capital and capitalized software expenditures. The Company believes this is an important measure of its liquidity, of its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not reflect, among other things, deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and acquisitions.
The change in working capital is comprised of current accounts receivable, inventory and accounts payable.
3
-Page 12-
THE STANLEY WORKS AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION (Unaudited, Millions of Dollars)
FOURTH QUARTER
YEAR TO DATE
2008
2007
2008
2007
NET SALES
Construction & DIY
$
371.2
$
440.8
$
1,655.5
$
1,715.2
Security
410.2
360.0
1,497.2
1,399.5
Industrial
304.5
337.4
1,273.5
1,245.8
Total
$
1,085.9
$
1,138.2
$
4,426.2
$
4,360.5
SEGMENT PROFIT
Construction & DIY
$
23.6
$
60.2
$
190.7
$
254.2
Security
75.3
59.0
268.7
239.9
Industrial
31.2
50.2
164.2
182.7
Segment Profit
130.1
169.4
623.6
676.8
Corporate Overhead
(12.9
)
(14.5
)
(59.8
)
(62.2
)
Total
$
117.2
$
154.9
$
563.8
$
614.6
Segment Profit as a Percentage of Net Sales
Construction & DIY
6.4
%
13.7
%
11.5
%
14.8
%
Security
18.4
%
16.4
%
17.9
%
17.1
%
Industrial
10.2
%
14.9
%
12.9
%
14.7
%
Segment Profit
12.0
%
14.9
%
14.1
%
15.5
%
Corporate Overhead
-1.2
%
-1.3
%
-1.4
%
-1.4
%
Total
10.8
%
13.6
%
12.7
%
14.1
%
4
We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.
