FOR IMMEDIATE RELEASE Exhibit (20)(i) April 16, 1997 THE STANLEY WORKS REPORTS FIRST QUARTER 1997 RESULTS AND ANNOUNCES NEW "PRODUCT MANAGEMENT" ORGANIZATION New Britain, CT (NYSE: "SWK") ... The Stanley Works today announced a significant increase in earnings for its first quarter ended March 29, 1997. Reported net income was $37 million, or $.41 per share, compared with the prior year's net income of $30 million, or $.33 per share. Exclusive of restructuring and other charges, normalized or "core" net income in the first quarter was $40 million, or $.45 per share, an 18% increase over prior year core earnings of $34 million, or $.38 per share. John M. Trani, Chairman and Chief Executive Officer, commented on the quarter's results: "Our first quarter profit improvement of 18% is noteworthy considering that the first quarter of 1996 represented a 17% increase over the first quarter of 1995. Our cost structure is becoming leaner and is providing the necessary foundation for sustained, profitable growth." Net sales for the quarter were $647 million, 2% over the $635 million recorded in the first quarter last year. Ongoing businesses were up 6% with particular strength in Fastening Systems and Hardware. Overall operating margin on a core basis increased to 11.1% versus 9.9% last year. Increased volume and the positive effects of restructuring initiatives, including strong contributions from cross-divisional purchasing efforts, accounted for most of the improvement. Profitability in all segments improved: Tools operating margin was 13.4% versus 11.8% last year, Hardware was 15.1% versus 12.5%, and Specialty Hardware was 4.4% versus 3.7%. The company also announced that it will reorganize its operations into a product management structure. Eight newly-formed product groups will focus their efforts on customers and growth of their businesses through developing new products and expanding market scope. They will be complemented by centralized manufacturing, engineering, sales and service and supported by overall finance, human resource and information technology organizations. Additionally, the company is establishing a new corporate marketing and brand development function, whose focus will be the nurturing and leveraging of the Stanley brands. Mr. Trani explained: "Growth requires focus and organization. This new approach will directly strengthen the Stanley brand, allow our management team to focus on our customers and on growing our businesses, facilitate a constant flow of new Page 5 of 11 Pages products and finally be more efficient. I look forward to communicating my plans for growth this summer. The implementation of this organization is a critical element in those plans." Finally, the company announced that Richard Huck, Vice President, Finance and Chief Financial Officer, will retire effective June 1. Mr. Trani stated: "The company owes much of its success in recent years to the wise counsel and guidance Rich provided to Dick Ayers and Alan Hunter during that time period. He has been an effective overseer of our company's finances, and our strong financial position is very much to his credit." Theresa Yerkes, Vice President and Controller, will function as CFO until a successor to Mr. Huck is identified. The Stanley Works is a worldwide producer of tools, hardware and specialty hardware for consumer, home improvement, industrial and professional use. Contact: Gerard J. Gould Director, Investor Relations and Communications Tel.: (860) 827-3833 This press release contains forward-looking statements. Cautionary statements accompanying these forward-looking statements are set forth, along with this release, in a Form 8-K filed with the Securities and Exchange Commission today. The Stanley Works corporate press releases are available through PR Newswire's "Company News On-Call" service. By FAX: dial 1-800-758-5804, ext. 874363 or on the internet at: http://www.prnewswire.com or http://www.StanleyWorks.com. Page 6 of 11 Pages THE STANLEY WORKS AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited, Millions of Dollars Except Per Share Amounts) First Quarter 1997 1996 -------- -------- Net Sales $ 646.6 $ 635.3 Costs and Expenses Cost of sales 431.4 429.3 Selling, general and administrative 153.2 149.0 Interest - net 4.3 6.5 Other - net 3.6 3.5 Restructuring (4.6) - -------- -------- 587.9 588.3 -------- -------- Earnings before income taxes 58.7 47.0 Income Taxes 22.0 17.4 -------- -------- Net Earnings $ 36.7 $ 29.6 ======== ======== Net Earnings Per Share of Common Stock $ 0.41 $ 0.33 ======== ======== Dividends per share $ 0.185 $ 0.18 ======== ======== Average shares outstanding (in thousands) 88,755 88,815 ======== ======== Page 7 of 11 Pages THE STANLEY WORKS AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited, Millions of Dollars) March 29 March 30 1997 1996 -------- -------- ASSETS Cash and cash equivalents $ 76.4 $ 39.3 Accounts receivable 453.3 454.9 Inventories 329.2 335.2 Other current assets 40.3 45.8 -------- -------- Total current assets 899.2 875.2 Property, plant and equipment 561.6 554.7 Goodwill and other intangibles 95.9 129.4 Other assets 76.8 69.1 -------- -------- $ 1,633.5 $ 1,628.4 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Short-term borrowings $ 53.7 $ 66.2 Accounts payable 111.2 84.2 Accrued expenses 222.1 198.0 -------- -------- Total current liabilities 387.0 348.4 Long-term debt 298.9 384.0 Other long-term liabilities 155.7 152.7 Shareholders' equity 791.9 743.3 -------- -------- $ 1,633.5 $ 1,628.4 ======== ======== Page 7 of 11 Pages THE STANLEY WORKS AND SUBSIDIARIES PRICE/VOLUME INFORMATION (Unaudited, Millions of Dollars) NET SALES First Quarter ----------------------------------------------------- Unit ACQ/ Curr- 1997 Price Volume DVT ency 1996 ----------------------------------------------------- INDUSTRY SEGMENTS Tools Consumer $ 178.0 - 6% (4)% (1)% $ 176.8 Industrial 132.6 2% (3)% (2)% - 136.3 Engineered 172.1 (1)% 8% (1)% (1)% 164.0 -------- -------- Total Tools 482.7 - 4% (2)% (1)% 477.1 Hardware 93.1 - 12% - - 83.2 Specialty Hardware 70.8 (3)% 9% (12)% - 75.0 -------- -------- Consolidated $ 646.6 - 6% (3)% (1)% $ 635.3 ======== ======== GEOGRAPHIC AREAS United States $ 455.8 - 6% (4)% - $ 449.5 Europe 107.8 - 4% - (4)% 108.1 Other Areas 83.0 1% 8% (2)% - 77.7 -------- -------- Consolidated $ 646.6 - 6% (3)% (1)% $ 635.3 ======== ======== THE STANLEY WORKS AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION (Unaudited, Millions of Dollars) OPERATING PROFIT First Quarter 1997 ------------------------------------------------- Related Core Restrg Transition Profit Reported Charges Costs Core Margin ------------------------------------------------- INDUSTRY SEGMENTS Tools $ 56.0 $ 1.1 $ 7.6 $ 64.7 13.4% Hardware 11.8 0.4 1.9 14.1 15.1% Specialty Hardware 2.3 0.6 0.2 3.1 4.4% ------ ------ ------ ------ Total 70.1 2.1 9.7 81.9 12.7% Net corporate expenses (5.8) (6.7) 0.1 (12.4) Interest expense (5.6) - - (5.6) ------ ------ ------ ------ Earnings before income taxes $ 58.7 $ (4.6) $ 9.8 $ 63.9 ====== ====== ====== ====== GEOGRAPHIC AREAS United States $ 53.2 $ 1.2 $ 7.6 $ 62.0 13.6% Europe 11.3 0.4 1.1 12.8 11.9% Other Areas 5.6 0.5 1.0 7.1 8.6% ------ ------ ------ ------ Total $ 70.1 $ 2.1 $ 9.7 $ 81.9 12.7% ====== ====== ====== ====== First Quarter 1996 ------------------------------------------------- Related Core Restrg Transition Profit Reported Charges Costs Core Margin ------------------------------------------------- INDUSTRY SEGMENTS Tools $ 51.9 $ - $ 4.2 $ 56.1 11.8% Hardware 9.6 - 0.8 10.4 12.5% Specialty Hardware 2.3 - 0.5 2.8 3.7% ------ ------ ------ ------ Total 63.8 - 5.5 69.3 10.9% Net corporate expenses (9.2) - 1.3 (7.9) Interest expense (7.6) - - (7.6) ------ ------ ------ ------ Earnings before income taxes $ 47.0 $ - $ 6.8 $ 53.8 ====== ====== ====== ====== GEOGRAPHIC AREAS United States $ 45.4 $ - $ 4.4 $ 49.8 11.1% Europe 11.6 - 0.6 12.2 11.3% Other Areas 6.8 - 0.5 7.3 9.4% ------ ------ ------ ------ Total $ 63.8 $ - $ 5.5 $ 69.3 10.9% ====== ====== ====== ====== Page 10 of 11 Pages