Exhibit 12
THE STANLEY WORKS AND SUBSIDIAIRES
COMPUTATION OF EARNINGS TO FIXED CHARGES
(In Millions of Dollars)
SECOND QUARTER SIX MONTHS
1998 1997 1998 1997
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Earnings (loss) before income taxes $67.5 ($81.5) $125.7 ($22.8)
Add:
Portion of rents representative of
interest factor 2.9 2.9 5.8 6.2
Interest expense 6.5 6.2 13.3 11.7
Amortization of expense
on long-term debt 0.1 0.1 0.1 0.1
Amortization of capitalized interest - - - 0.1
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Income (loss) as adjusted $77.0 ($72.3) $144.9 ($4.7)
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Fixed charges:
Interest expense $6.5 $6.2 $13.3 $11.7
Amortization of expense
on long-term debt 0.1 0.1 0.1 0.1
Portion of rents representative of
interest factor 2.9 2.9 5.8 6.2
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Fixed charges $9.5 $9.2 $19.2 $18.0
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Ratio of earnings to fixed charges (A) 8.11 N/A 7.55 N/A
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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.