Exhibit 12
THE STANLEY WORKS AND SUBSIDIAIRES
COMPUTATION OF EARNINGS TO FIXED CHARGES
(In Millions of Dollars)
SECOND QUARTER SIX MONTHS
1997 1996 1997 1996
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Earnings (loss) before income taxes ($81.5) $57.5 ($22.8) $104.5
Add:
Portion of rents representative of
interest factor $2.9 $3.4 $6.2 $6.7
Interest expense 6.2 6.8 11.7 14.3
Amortization of expense on
long-term debt 0.1 0.1
Amortization of capitalized interest 0.1 0.1 0.2
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Income (loss) as adjusted ($72.3) $67.9 ($4.7) $125.8
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Fixed charges:
Interest expense $6.2 $6.8 $11.7 $14.3
Amortization of expense
on long-term debt 0.1 0.1
Capitalized interest 0.1 0.1
Portion of rents representative of
interest factor 2.9 3.4 6.2 6.7
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Fixed charges $9.2 $10.4 $18.0 $21.2
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Ratio of earnings to fixed charges (A) N/A 6.53 N/A 5.93
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(A) Due to signficant restructuring charges and asset write-offs recorded in
the second quarter of 1997, income as computed above, was inadequate to
cover fixed charges. The deficiency was $81.5 for the second quarter and
$22.7 for the first six months of 1997.