NEW BRITAIN, Conn.,
Jan. 29, 2020 /PRNewswire/
-- Stanley Black & Decker (NYSE: SWK) today announced full
year and fourth quarter 2019 financial results.
- Full Year Revenues Totaled $14.4
Billion, Up 3% Versus Prior Year, With 3% Organic
Growth
- Full Year Operating Margin Rate Was 12.2%; Excluding Charges,
Full Year Operating Margin Rate Was 13.5%, Relatively Consistent
Versus Prior Year Despite $445
Million In External Headwinds
- Full Year Diluted GAAP EPS Was $6.35; Excluding Charges, Full Year Diluted EPS
Was $8.40, Up 3% Versus Prior
Year
- Full Year Free Cash Flow Was $1.1
Billion, 113% Of Net Income
- 4Q'19 Revenues Totaled $3.7
Billion, Up 2% Versus Prior Year
- 4Q'19 Operating Margin Rate Was 11.8%; Excluding Charges 4Q'19
Operating Margin Rate Was 13.6%, Up 30 Basis Points Versus Prior
Year
- 4Q'19 Diluted GAAP EPS Was $1.32;
Excluding Charges, 4Q'19 Diluted EPS Was $2.18
- Expect 2020 Full Year Diluted GAAP EPS Of $8.05 To $8.35;
Adjusted EPS Of $8.80 - $9.00; 2020 Free Cash Flow Conversion To
Approximate 90%-100%
Other Developments:
- Announces 2020 Leadership Transition For Tools & Storage
Unit
- Reaches Agreement To Acquire Consolidated Aerospace
Manufacturing, LLC (CAM) For Up To $1.5
Billion; Provides A Fastener & Component Platform To
Grow In Aerospace & Defense And Advances Growth Strategy
4Q'19 Key Points:
- Net sales for the quarter were $3.7
billion, up 2% versus prior year as volume (+1%), price
(+1%) and acquisitions & divestitures (+1%) more than offset
currency (-1%).
- Gross margin rate for the quarter was 31.2%. Excluding charges,
the rate was 31.7%, down 160 basis points from prior year as
volume, productivity and price were more than offset by external
headwinds and the impacts of product mix and plant absorption in
Tools & Storage.
- SG&A expenses were 19.5% of sales. Excluding charges,
SG&A expenses were 18.1% of sales compared to 20.1% in 4Q'18,
primarily reflecting actions taken in response to external
headwinds.
- The tax rate was 10.7%. Excluding charges, tax rate was 15.8%
versus 17.3% in 4Q'18.
- Working capital turns for the quarter were 9.8, up 1.0 turns
from prior year primarily as a result of working capital management
and lower inventory investment associated with recent Tools &
Storage brand rollouts.
James M. Loree, President &
CEO, commented, "Stanley Black &
Decker delivered a strong 2019 overcoming approximately
$445 million in external
headwinds. We generated above-market organic growth of 3%,
low single digit adjusted EPS growth and robust free cash flow in a
dynamic operating environment.
"Growing and diversifying our Industrial business through
M&A is a key priority for the Company and a focus of our
strategic capital deployment. Today we are excited to
announce the acquisition of CAM which is an ideal platform asset to
scale within our Engineered Fastening business and significantly
adds to our exposure in the high growth, high margin aerospace and
defense segment. CAM is a quality asset bringing
well-recognized brands, a proven business model, an experienced
management team and compelling cash flow characteristics which
create an attractive pathway for profitable growth and shareholder
returns.
"Looking to 2020 and beyond, we remain well-positioned to
deliver share gains as we leverage our robust growth catalysts,
including Craftsman, e-commerce, revenue synergies across our
portfolio, and new innovations. The organization is focused
on generating margin accretion as we realize the benefits from our
$200 million cost reduction program
and implement our margin resiliency initiatives. We are
energized to tackle what 2020 has in store as we leverage our
proven operating system. We intend to act with speed and
agility to deliver another successful year and continue to achieve
our vision to (1) deliver top-quartile financial performance, (2)
become known as one of the world's great innovators, and (3)
elevate our commitment to corporate social responsibility."
4Q'19 Segment Results
($ in M)
|
|
|
Sales
|
Profit
|
Charges1
|
Profit Ex-
Charges1
|
Profit
Rate
|
Profit Rate Ex-
Charges1
|
|
|
|
|
|
|
|
Tools &
Storage
|
$2,610
|
$417.4
|
$12.8
|
$430.2
|
16.0%
|
16.5%
|
|
|
|
|
|
|
|
Industrial
|
$597
|
$77.7
|
$3.7
|
$81.4
|
13.0%
|
13.6%
|
|
|
|
|
|
|
|
Security
|
$507
|
$16.0
|
$41.0
|
$57.0
|
3.2%
|
11.2%
|
1See
Merger And Acquisition ("M&A") Related And Other Charges
On Page 6
|
- Tools & Storage net sales increased 1% versus 4Q'18 due to
volume (+2%) partially offset by currency (-1%). The 2% organic
growth for the quarter was led by North
America (+3%) and Europe
(+3%), more than offsetting a decline in emerging markets (-3%).
North America organic growth was
driven by the rollout of the Craftsman brand and new product
innovation, such as DEWALT Flexvolt, Atomic and Xtreme, which were
partially offset by declines in Canada and industrial-focused businesses.
Europe growth was supported by new
products and successful commercial actions. The organic decline in
emerging markets was attributed to weak market conditions in
Latin America offsetting the
benefits from price, new product launches and e-commerce expansion.
The Tools & Storage segment profit rate, excluding charges, was
16.5%, up 110 basis points versus 4Q'18 rate, as the benefits from
volume, margin resiliency actions and price were partially offset
by external headwinds, product mix and unfavorable plant absorption
related to inventory reductions.
- Industrial net sales increased 9% versus 4Q'18 as acquisitions
(+13%) were partially offset by lower volume (-4%). Engineered
Fastening organic revenues were flat as higher systems shipments
and fastener penetration gains were offset by inventory reductions
and lower production levels within industrial and automotive
customers. Infrastructure organic revenues (-17%) were impacted by
challenging oil & gas pipeline and scrap steel markets. Overall
Industrial segment profit rate was 13.6%, excluding charges, up
from the 4Q'18 rate of 13.2%, as productivity gains and cost
control more than offset the impact from lower volume and
externally driven cost inflation.
- Security net sales increased 1% versus 4Q'18 as volume (+2%)
and price (+2%) were partially offset by divestitures (-2%) and
currency (-1%). The 4% organic growth was led by North America (+7%) and Europe (+1%) and was partially offset by
business shut-downs in emerging markets. North America organic growth was driven by
increased installations within commercial electronic security and
higher volumes in healthcare and automatic doors. Europe growth in France & Sweden were partially offset by continued
market weakness in the U.K. Overall Security segment profit rate,
excluding charges, was 11.2%, down versus the 4Q'18 rate of 12.0%,
as organic growth and cost containment were more than offset by the
impact from the Sargent & Greenleaf divestiture and investments
to support organic growth.
Donald Allan Jr., Executive Vice
President and CFO, commented, "It was encouraging to see Security
organic growth accelerate in the fourth quarter as we generate
benefits from our targeted investments in commercial electronic
security. As we look ahead to 2020 and beyond, we believe the
business is now well-positioned to deliver consistent organic
growth and leverage our cost efficiency initiatives to generate
solid margin expansion."
Tools & Storage Leadership Transition
Today the Company also announced that EVP & President of the
Tools & Storage business, Jeffery D.
Ansell, has elected to transition his responsibilities
during the first half of 2020. Jaime A.
Ramirez, currently Senior Vice President & Chief
Operating Officer of Tools & Storage, will succeed Ansell
effective July 1. Ansell will work
closely with Ramirez through the transition period. He will
then assume responsibility for a strategic initiative to revitalize
and accelerate growth of the iconic BLACK+DECKER brand through
year-end 2021, reporting directly to the CEO. He will then
become a Strategic Advisor to the Company through year-end
2023.
Loree added, "Our Tools & Storage franchise is second to
none with the brands, technology, products and team that have made
us a leader in our industry for 177 years. For the last twenty of
them, few have contributed more to our success than Jeff Ansell, and we are grateful for that.
We respect his desire to spend more time on personal endeavors and
appreciate that he will continue as an important part of our team
over the next several years. We anticipate a smooth
transition to Jaime Ramirez, a
27-year Tools & Storage veteran. With his deep knowledge of our
business and customers, global perspective, commitment to
innovation and the respect of his colleagues, we are confident that
he is the right leader to take our Tools & Storage business
into the future."
Acquisition Of Consolidated Aerospace Manufacturing, LLC
(CAM)
The Company announced today that it has entered into a
definitive agreement to acquire CAM for up to $1.5 billion in cash, with $200 million of the purchase price held back and
contingent on the Boeing 737 MAX receiving FAA authorization to
return to service and Boeing achieving certain production levels.
When adjusted for approximately $185
million of expected cash tax benefits, the net transaction
value is approximately $1.1 -
$1.3 billion. CAM is an
industry-leading manufacturer of specialty fasteners &
components for the aerospace & defense markets (LTM revenues
~$375 million). CAM will become
part of Stanley Black & Decker's
broad portfolio of engineered fastening & component solutions,
adding a meaningful platform within the Company's Industrial
segment for continued organic and acquisitive growth.
The acquisition is expected to be accretive to EPS by
approximately $0.30 - $0.40 by year three. The transaction, which
is subject to customary closing conditions, including receipt of
required regulatory approvals, will be funded with available cash
and proceeds from borrowings.
2020 Outlook
Allan added, "We delivered share gains in 2019 across much of
the portfolio, EPS growth, and a strong free cash flow performance
despite slowing global markets and the mid-year acceleration of
tariff and currency-related inflation which resulted in
$445 million of external
headwinds. In 2020, we expect to generate above-market
organic growth of approximately 3%, adjusted earnings per share
expansion of 5% - 7% versus prior year, and continued strong free
cash flow."
Management expects 2020 EPS to be $8.05 To $8.35 on a
GAAP basis and $8.80 - $9.00 on an adjusted basis. Free cash flow
conversion is expected to approximate 90%-100% of GAAP Net Income,
reflecting the impact of restructuring payments associated with the
2019 cost reduction program.
The following represents key 2020 adjusted EPS assumptions:
- 2019 cost reduction program benefit (~ +$0.95)
- Organic growth of approximately 3% (~+$0.40 to +$0.50)
- Incremental tariffs and currency headwinds (~ -$0.60 to -$0.70)
- Tax rate, financing costs and other below the line items (~
-$0.25)
Allan continued, "The organization is focused on delivering
margin expansion in 2020 by realizing the benefits of our
previously announced cost actions and generating volume leverage to
offset the carryover impacts from tariffs and currency. In
addition, our margin resiliency program is in full execution mode,
allowing us to withstand changes in the external environment or
support further margin improvement going forward.
"We are confident that the Company is well positioned to deliver
sustained above-market organic growth, operating margin expansion,
strong free cash flow conversion and top-quartile shareholder
returns over the long-term."
The difference between 2020 GAAP and adjusted EPS guidance is
$0.65 - $0.75, consisting of acquisition-related and
other charges. These forecasted charges primarily relate to
restructuring, deal and integration costs, as well as Security
business transformation and key margin resiliency initiatives.
Merger And Acquisition ("M&A\") Related And Other
Charges
Total pre-tax M&A related and other charges in 4Q'19 were
$164.0 million, primarily related to
restructuring, deal and integration costs, charges related to the
extinguishment of debt, as well as Security business transformation
and margin resiliency initiatives. Gross margin included
$17.3 million of these charges while
SG&A included $52.6
million. Other, net and Restructuring included
$31.0 million and $62.9 million of these charges, respectively.
M&A charges in 4Q'19 also included a $0.2 million charge related to a previous
divestiture.
Share of net earnings of equity method investment included
$5.3 million of
charges.
The Company will host a conference call with investors today,
January 29, 2020, at 8:00 am ET. A slide presentation which will
accompany the call will be available at
www.stanleyblackanddecker.com and will remain available after the
call.
The call will be accessible by telephone within the U.S. at
(877) 930-8285, from outside the U.S. at +1 (253) 336-8297, and via
the Internet at www.stanleyblackanddecker.com. To participate,
please register on the website at least fifteen minutes prior to
the call and download and install any necessary audio
software. Please use the conference identification number
6156575. A replay will also be available two hours after the call
and can be accessed at (855) 859-2056 or +1 (404) 537-3406 using
the passcode 6156575. The replay will also be available as a
podcast within 24 hours and can be accessed on our website and via
iTunes.
Stanley Black & Decker, an
S&P 500 company, is a diversified global provider of hand
tools, power tools and related accessories, electronic security
solutions, healthcare solutions, engineered fastening systems, and
more. Learn more at www.stanleyblackanddecker.com.
Investor Contacts:
Dennis Lange
Vice President, Investor Relations
dennis.lange@sbdinc.com
(860) 827-3833
Cort Kaufman
Director, Investor Relations
cort.kaufman@sbdinc.com
(860) 515-2741
Media Contacts:
Shannon Lapierre
Vice President, Communications & Public Relations
shannon.lapierre@sbdinc.com
(860) 827-3575
Organic sales growth is defined as total sales growth less the
sales of companies acquired and divested in the past twelve months
and any foreign currency impacts. Operating margin is defined as
sales less cost of sales and selling, general and administrative
expenses. Management uses operating margin and its percentage
of net sales as key measures to assess the performance of the
Company as a whole, as well as the related measures at the segment
level. Free cash flow is defined as cash flow from operations less
capital and software expenditures. Management considers free cash
flow an important indicator of its liquidity, as well as its
ability to fund future growth and to provide a return to the
shareowners. Free cash flow does not include deductions for
mandatory debt service, other borrowing activity, discretionary
dividends on the Company's common stock and business acquisitions,
among other items. Free cash flow conversion is defined as
free cash flow divided by net income. The normalized
statement of operations and business segment information, as
reconciled to GAAP on pages 13 to 16, is considered relevant to aid
analysis of the Company's margin and earnings results aside from
the material impact of the M&A related and other
charges.
CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995
This document contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements other than statements of historical fact are
"forward-looking statements" for purposes of federal and state
securities laws, including any projections or guidance of earnings,
revenue or other financial items; any statements of the plans,
strategies and objectives of management for future operations; any
statements concerning proposed new products, services or
developments; any statements regarding future economic conditions
or performance; any statements of belief; and any statements of
assumptions underlying any of the foregoing. Forward-looking
statements may include, among other, the words "may," "will,"
"estimate," "intend," "continue," "believe," "expect," "anticipate"
or any other similar words.
Although the Company believes that the expectations reflected in
any of its forward-looking statements are reasonable, actual
results could differ materially from those projected or assumed in
any of its forward-looking statements. The Company's future
financial condition and results of operations, as well as any
forward-looking statements, are subject to change and to inherent
risks and uncertainties, such as those disclosed or incorporated by
reference in the Company's filings with the Securities and Exchange
Commission.
Important factors that could cause the Company's actual results,
performance and achievements, or industry results to differ
materially from estimates or projections contained in its
forward-looking statements include, among others, the following:
(i) successfully developing, marketing and achieving sales from new
products and services and the continued acceptance of current
products and services; (ii) macroeconomic factors, including global
and regional business conditions (such as Brexit), commodity
prices, inflation, and currency exchange rates; (iii) laws,
regulations and governmental policies affecting the Company's
activities in the countries where it does business, including those
related to tariffs, taxation, and trade controls; (iv) the economic
environment of emerging markets, particularly Latin America, Russia, China
and Turkey; (v) realizing the
anticipated benefits of mergers, acquisitions, joint ventures,
strategic alliances or divestitures, including the closing of the
CAM acquisition, its successful integration into the Company and
the return to production of the Boeing 737 MAX; (vi) pricing
pressure and other changes within competitive markets; (vii)
availability and price of raw materials, component parts, freight,
energy, labor and sourced finished goods; (viii) the impact the
tightened credit markets may have on the Company or its customers
or suppliers; (ix) the extent to which the Company has to write off
accounts receivable or assets or experiences supply chain
disruptions in connection with bankruptcy filings by customers or
suppliers; (x) the Company's ability to identify and effectively
execute productivity improvements and cost reductions; (xi)
potential business and distribution disruptions, including those
related to physical security threats, information technology or
cyber-attacks, epidemics, sanctions or natural disasters; (xii) the
continued consolidation of customers, particularly in consumer
channels; (xiii) managing franchisee relationships; (xiv) the
impact of poor weather conditions; (xv) maintaining or improving
production rates in the Company's manufacturing facilities,
responding to significant changes in product demand and fulfilling
demand for new and existing products; (xvi) changes in the
competitive landscape in the Company's markets; (xvii) the
Company's non-U.S. operations, including sales to non-U.S.
customers; (xviii) the impact from demand changes within world-wide
markets associated with homebuilding and remodeling; (xix)
potential adverse developments in new or pending litigation and/or
government investigations; (xx) changes in the Company's ability to
obtain debt on commercially reasonable terms and at competitive
rates; (xxi) substantial pension and other postretirement benefit
obligations; (xxii) potential environmental liabilities; (xxiii)
work stoppages or other labor disruptions; and (xxiv) changes in
accounting estimates.
Additional factors that could cause actual results to differ
materially from forward-looking statements are set forth in the
Annual Report on Form 10-K and in the Quarterly Report on Form
10-Q, including under the heading "Risk Factors," "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and in the Consolidated Financial Statements and the
related Notes.
Forward-looking statements in this press release speak only as
of the date hereof, and forward-looking statements in documents
attached that are incorporated by reference speak only as of the
date of those documents. The Company does not undertake any
obligation to update or release any revisions to any
forward-looking statement or to report any events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events, except as required by law.
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited,
Millions of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
$
3,714.2
|
|
$
3,634.7
|
|
$
14,442.2
|
|
$
13,982.4
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
2,553.6
|
|
2,474.8
|
|
9,636.7
|
|
9,131.3
|
|
|
Gross
margin
|
|
1,160.6
|
|
1,159.9
|
|
4,805.5
|
|
4,851.1
|
|
|
% of Net
Sales
|
|
31.2%
|
|
31.9%
|
|
33.3%
|
|
34.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
723.7
|
|
781.4
|
|
3,041.0
|
|
3,171.7
|
|
|
% of Net
Sales
|
|
19.5%
|
|
21.5%
|
|
21.1%
|
|
22.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
436.9
|
|
378.5
|
|
1,764.5
|
|
1,679.4
|
|
|
% of Net
Sales
|
|
11.8%
|
|
10.4%
|
|
12.2%
|
|
12.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other -
net
|
|
84.4
|
|
50.3
|
|
267.0
|
|
287.0
|
|
|
Loss (gain) on sales
of businesses
|
|
0.2
|
|
-
|
|
(17.0)
|
|
0.8
|
|
|
Restructuring
charges
|
|
62.9
|
|
102.2
|
|
154.1
|
|
160.3
|
|
|
Income from
operations
|
|
289.4
|
|
226.0
|
|
1,360.4
|
|
1,231.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest -
net
|
|
52.6
|
|
55.0
|
|
230.4
|
|
209.2
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE
INCOME TAXES AND EQUITY INTEREST
|
236.8
|
|
171.0
|
|
1,130.0
|
|
1,022.1
|
|
|
Income
taxes
|
|
25.3
|
|
277.0
|
|
160.8
|
|
416.3
|
|
NET EARNINGS
(LOSS) BEFORE EQUITY INTEREST
|
|
211.5
|
|
(106.0)
|
|
969.2
|
|
605.8
|
|
|
Share of net losses
of equity method investment
|
|
(12.4)
|
|
-
|
|
(11.2)
|
|
-
|
|
NET EARNINGS
(LOSS)
|
|
199.1
|
|
(106.0)
|
|
958.0
|
|
605.8
|
|
|
Less: net earnings
attributable to non-controlling interests
|
-
|
|
0.8
|
|
2.2
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
(LOSS) ATTRIBUTABLE TO COMMON SHAREOWNERS
|
$
199.1
|
|
$
(106.8)
|
|
$
955.8
|
|
$
605.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
PER SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.34
|
|
$
(0.72)
|
|
$
6.44
|
|
$
4.06
|
|
|
Diluted
|
|
$
1.32
|
|
$
(0.72)
|
|
$
6.35
|
|
$
3.99
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS PER
SHARE
|
|
$
0.69
|
|
$
0.66
|
|
$
2.70
|
|
$
2.58
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE SHARES OUTSTANDING (in
thousands)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
149,016
|
|
147,582
|
|
148,365
|
|
148,919
|
|
|
Diluted
|
|
151,244
|
|
147,582
|
|
150,558
|
|
151,643
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
December
28,
|
|
December
29,
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
297.7
|
|
$
288.7
|
|
Accounts and notes
receivable, net
|
|
1,454.6
|
|
1,607.8
|
|
Inventories,
net
|
|
2,255.0
|
|
2,373.5
|
|
Other current
assets
|
|
449.3
|
|
299.4
|
|
Total current assets
|
|
4,456.6
|
|
4,569.4
|
|
Property, plant and
equipment, net
|
|
1,959.5
|
|
1,915.2
|
|
Goodwill and other
intangibles, net
|
|
12,859.5
|
|
12,441.1
|
|
Other
assets
|
|
1,321.0
|
|
482.3
|
|
Total assets
|
|
$
20,596.6
|
|
$
19,408.0
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREOWNERS' EQUITY
|
|
|
|
|
Short-term
borrowings
|
|
$
337.3
|
|
$
376.1
|
|
Current maturities of
long-term debt
|
|
3.1
|
|
2.5
|
|
Accounts
payable
|
|
2,087.8
|
|
2,233.2
|
|
Accrued
expenses
|
|
1,977.5
|
|
1,389.8
|
|
Total current liabilities
|
|
4,405.7
|
|
4,001.6
|
|
Long-term
debt
|
|
3,176.4
|
|
3,819.8
|
|
Other long-term
liabilities
|
|
3,872.3
|
|
3,746.7
|
|
Stanley Black &
Decker, Inc. shareowners' equity
|
9,136.3
|
|
7,836.2
|
|
Non-controlling
interests' equity
|
|
5.9
|
|
3.7
|
|
Total liabilities and shareowners' equity
|
$
20,596.6
|
|
$
19,408.0
|
STANLEY
BLACK & DECKER, INC. AND SUBSIDIARIES
|
SUMMARY OF CASH
FLOW ACTIVITY
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
|
|
$
199.1
|
|
$
(106.0)
|
|
$
958.0
|
|
$
605.8
|
|
|
Depreciation and
amortization
|
|
|
139.8
|
|
125.5
|
|
560.2
|
|
506.5
|
|
|
Loss (gain) on sales
of businesses
|
|
|
0.2
|
|
-
|
|
(17.0)
|
|
0.8
|
|
|
Share of net losses
of equity method investment
|
|
|
12.4
|
|
-
|
|
11.2
|
|
-
|
|
|
Changes in working
capital1
|
|
|
974.1
|
|
779.2
|
|
114.9
|
|
(237.9)
|
|
|
Other
|
|
|
|
(82.3)
|
|
422.1
|
|
(121.6)
|
|
385.7
|
|
|
Net cash provided
by operating activities
|
|
|
1,243.3
|
|
1,220.8
|
|
1,505.7
|
|
1,260.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING AND
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Capital and software
expenditures
|
|
|
(141.2)
|
|
(164.7)
|
|
(424.7)
|
|
(492.1)
|
|
|
(Payments) proceeds
from sales of businesses, net of cash sold
|
|
|
(0.1)
|
|
-
|
|
76.6
|
|
(3.0)
|
|
|
Business
acquisitions, net of cash acquired
|
|
|
(3.2)
|
|
(2.7)
|
|
(685.4)
|
|
(524.6)
|
|
|
Sales of
assets
|
|
|
94.9
|
|
26.0
|
|
100.1
|
|
45.2
|
|
|
Purchases of
investments
|
|
|
(2.0)
|
|
(5.6)
|
|
(260.6)
|
|
(21.7)
|
|
|
Payments on long-term
debt
|
|
|
(750.0)
|
|
(977.5)
|
|
(1,150.0)
|
|
(977.5)
|
|
|
Proceeds from debt
issuances, net of fees
|
|
|
-
|
|
990.0
|
|
496.2
|
|
990.0
|
|
|
Stock purchase
contract fees
|
|
|
(10.0)
|
|
(10.0)
|
|
(40.3)
|
|
(40.3)
|
|
|
Net short-term
(repayments) borrowings
|
|
|
(1,136.0)
|
|
(1,011.9)
|
|
(18.1)
|
|
433.2
|
|
|
Premium paid on
equity options
|
|
|
(19.2)
|
|
-
|
|
(19.2)
|
|
(57.3)
|
|
|
Proceeds from
issuance of preferred stock
|
|
|
735.0
|
|
-
|
|
735.0
|
|
-
|
|
|
Proceeds from
issuances of common stock
|
|
|
99.9
|
|
5.7
|
|
146.0
|
|
38.5
|
|
|
Purchases of common
stock for treasury
|
|
|
(15.6)
|
|
(12.6)
|
|
(27.5)
|
|
(527.1)
|
|
|
Cash dividends on
common stock
|
|
|
(104.4)
|
|
(98.4)
|
|
(402.0)
|
|
(384.9)
|
|
|
Effect of exchange
rate changes on cash
|
|
|
19.0
|
|
0.2
|
|
(1.4)
|
|
(53.9)
|
|
|
Other
|
|
|
|
(20.2)
|
|
(16.6)
|
|
(27.2)
|
|
(29.1)
|
|
|
Net cash used in
investing and financing activities
|
|
|
(1,253.1)
|
|
(1,278.1)
|
|
(1,502.5)
|
|
(1,604.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
increase in cash, cash equivalents and restricted
cash
|
|
|
(9.8)
|
|
(57.3)
|
|
3.2
|
|
(343.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
|
324.4
|
|
368.7
|
|
311.4
|
|
655.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
|
$
314.6
|
|
$
311.4
|
|
$
314.6
|
|
$
311.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Computation2
|
|
|
|
|
|
|
|
|
|
|
Operating cash
flow
|
|
|
$
1,243.3
|
|
$
1,220.8
|
|
$
1,505.7
|
|
$
1,260.9
|
|
Less: capital and
software expenditures
|
|
|
(141.2)
|
|
(164.7)
|
|
(424.7)
|
|
(492.1)
|
|
Free cash flow
(before dividends)
|
|
|
$
1,102.1
|
|
$
1,056.1
|
|
$
1,081.0
|
|
$
768.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Cash, Cash Equivalents and Restricted Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 28,
2019
|
|
December 29,
2018
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
297.7
|
|
$
288.7
|
|
|
|
|
|
Restricted cash
included in Other current assets
|
|
|
16.9
|
|
22.7
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
$
314.6
|
|
$
311.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Working capital is
comprised of accounts receivable, inventory, accounts payable and
deferred revenue.
|
2
|
Free cash flow is
defined as cash flow from operations less capital and software
expenditures. Management considers free cash flow an important
measure
of its liquidity, as well as its ability to fund future growth and
to provide a return to the shareowners. Free cash flow does not
include deductions for mandatory
debt service, other borrowing activity, discretionary dividends on
the Company's common stock and business acquisitions, among other
items.
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
BUSINESS SEGMENT
INFORMATION
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
2,609.8
|
|
$
2,582.4
|
|
$
10,062.1
|
|
$
9,814.0
|
|
Industrial
|
|
597.1
|
|
548.5
|
|
2,434.7
|
|
2,187.8
|
|
Security
|
|
507.3
|
|
503.8
|
|
1,945.4
|
|
1,980.6
|
|
Total
|
|
$
3,714.2
|
|
$
3,634.7
|
|
$
14,442.2
|
|
$
13,982.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
417.4
|
|
$
336.9
|
|
$
1,533.3
|
|
$
1,393.1
|
|
Industrial
|
|
77.7
|
|
65.4
|
|
334.1
|
|
319.8
|
|
Security
|
|
16.0
|
|
28.3
|
|
126.6
|
|
169.3
|
|
Segment
Profit
|
|
511.1
|
|
430.6
|
|
1,994.0
|
|
1,882.2
|
|
Corporate
Overhead
|
|
(74.2)
|
|
(52.1)
|
|
(229.5)
|
|
(202.8)
|
|
Total
|
|
$
436.9
|
|
$
378.5
|
|
$
1,764.5
|
|
$
1,679.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
16.0%
|
|
13.0%
|
|
15.2%
|
|
14.2%
|
|
Industrial
|
|
13.0%
|
|
11.9%
|
|
13.7%
|
|
14.6%
|
|
Security
|
|
3.2%
|
|
5.6%
|
|
6.5%
|
|
8.5%
|
|
Segment
Profit
|
|
13.8%
|
|
11.8%
|
|
13.8%
|
|
13.5%
|
|
Corporate
Overhead
|
|
(2.0%)
|
|
(1.4%)
|
|
(1.6%)
|
|
(1.5%)
|
|
Total
|
|
11.8%
|
|
10.4%
|
|
12.2%
|
|
12.0%
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited,
Millions of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
2019
|
|
|
|
|
Reported
|
|
Acquisition-
Related Charges
& Other1
|
|
Normalized4
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
1,160.6
|
|
$
17.3
|
|
$
1,177.9
|
|
|
% of Net
Sales
|
|
31.2%
|
|
|
|
31.7%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
723.7
|
|
(52.6)
|
|
671.1
|
|
|
% of Net
Sales
|
|
19.5%
|
|
|
|
18.1%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
436.9
|
|
69.9
|
|
506.8
|
|
|
% of Net
Sales
|
|
11.8%
|
|
|
|
13.6%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes and equity interest
|
236.8
|
|
164.0
|
|
400.8
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
25.3
|
|
38.0
|
|
63.3
|
|
|
|
|
|
|
|
|
|
|
|
Share of net losses
of equity method investment
|
(12.4)
|
|
5.3
|
|
(7.1)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
199.1
|
|
131.3
|
|
330.4
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
1.32
|
|
$
0.86
|
|
$
2.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relates primarily to restructuring, deal and
integration costs, charges related to the extinguishment
of debt, Security business transformation and margin resiliency
initiatives.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
2018
|
|
|
|
|
Reported
|
|
Acquisition-
Related Charges
& Other2
|
|
Normalized4
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
1,159.9
|
|
$
51.9
|
|
$
1,211.8
|
|
|
% of Net
Sales
|
|
31.9%
|
|
|
|
33.3%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
781.4
|
|
(52.3)
|
|
729.1
|
|
|
% of Net
Sales
|
|
21.5%
|
|
|
|
20.1%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
378.5
|
|
104.2
|
|
482.7
|
|
|
% of Net
Sales
|
|
10.4%
|
|
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
171.0
|
|
212.7
|
|
383.7
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
277.0
|
|
(210.8)
|
|
66.2
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings
attributable to common shareowners
|
(106.8)
|
|
423.5
|
|
316.7
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per share of common stock3
|
$
(0.72)
|
|
$
2.83
|
|
$
2.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relate primarily to integration and consulting
costs, a cost reduction program, an incremental freight
charge related to a service provider's bankruptcy, and a tax charge
related to the enactment of new U.S. tax legislation.
|
|
3
|
The normalized
diluted earnings per share for the fourth quarter of 2018 is
calculated using diluted weighted-average shares outstanding of
149.849 million.
|
|
4
|
The normalized 2019
and 2018 information, as reconciled to GAAP above, is considered
relevant to aid analysis of the Company's margin
and earnings results aside from the material impact of the
acquisition-related and other charges.
|
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited,
Millions of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2019
|
|
|
|
|
Reported
|
|
Acquisition-
Related Charges
& Other1
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
4,805.5
|
|
$
39.7
|
|
$
4,845.2
|
|
|
% of Net
Sales
|
|
33.3%
|
|
|
|
33.5%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
3,041.0
|
|
(139.5)
|
|
2,901.5
|
|
|
% of Net
Sales
|
|
21.1%
|
|
|
|
20.1%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
1,764.5
|
|
179.2
|
|
1,943.7
|
|
|
% of Net
Sales
|
|
12.2%
|
|
|
|
13.5%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes and equity interest
|
1,130.0
|
|
363.2
|
|
1,493.2
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
160.8
|
|
78.1
|
|
238.9
|
|
|
|
|
|
|
|
|
|
|
|
Share of net (losses)
earnings of equity method investment
|
(11.2)
|
|
24.3
|
|
13.1
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
955.8
|
|
309.4
|
|
1,265.2
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
6.35
|
|
$
2.05
|
|
$
8.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relates primarily to restructuring, deal and
integration costs, charges related to the extinguishment
of debt, Security business transformation, margin resiliency
initiatives, and a gain on a sale of a business.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2018
|
|
|
|
|
Reported
|
|
Acquisition-
Related Charges
& Other2
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
4,851.1
|
|
$
65.7
|
|
$
4,916.8
|
|
|
% of Net
Sales
|
|
34.7%
|
|
|
|
35.2%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
3,171.7
|
|
(157.8)
|
|
3,013.9
|
|
|
% of Net
Sales
|
|
22.7%
|
|
|
|
21.6%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
1,679.4
|
|
223.5
|
|
1,902.9
|
|
|
% of Net
Sales
|
|
12.0%
|
|
|
|
13.6%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
1,022.1
|
|
449.9
|
|
1,472.0
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
416.3
|
|
(180.8)
|
|
235.5
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
605.2
|
|
630.7
|
|
1,235.9
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
3.99
|
|
$
4.16
|
|
$
8.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relates primarily to inventory step-up,
integration and consulting costs, a non-cash fair value
adjustment,
an environmental remediation settlement, a cost reduction program,
an incremental freight charge related to a service provider's
bankruptcy,
and tax charges related to the enactment of new U.S. tax
legislation.
|
|
3
|
The normalized 2019
and 2018 information, as reconciled to GAAP above, is considered
relevant to aid analysis of the Company's margin and
earnings results aside from the material impact of the
acquisition-related and other charges.
|
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP SEGMENT PROFIT FINANCIAL MEASURES TO
CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
2019
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related and
Other Charges1
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
417.4
|
|
$
12.8
|
|
$
430.2
|
|
|
|
Industrial
|
|
77.7
|
|
3.7
|
|
81.4
|
|
|
|
Security
|
|
16.0
|
|
41.0
|
|
57.0
|
|
|
|
Segment
Profit
|
|
511.1
|
|
57.5
|
|
568.6
|
|
|
|
Corporate
Overhead
|
|
(74.2)
|
|
12.4
|
|
(61.8)
|
|
|
|
Total
|
|
$
436.9
|
|
$
69.9
|
|
$
506.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
16.0%
|
|
|
|
16.5%
|
|
|
|
Industrial
|
|
13.0%
|
|
|
|
13.6%
|
|
|
|
Security
|
|
3.2%
|
|
|
|
11.2%
|
|
|
|
Segment
Profit
|
|
13.8%
|
|
|
|
15.3%
|
|
|
|
Corporate
Overhead
|
|
(2.0%)
|
|
|
|
(1.7%)
|
|
|
|
Total
|
|
11.8%
|
|
|
|
13.6%
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
and other charges relate primarily to Security business
transformation and margin resiliency
initiatives.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOURTH QUARTER
2018
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related and
Other Charges2
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
336.9
|
|
$
60.4
|
|
$
397.3
|
|
|
|
Industrial
|
|
65.4
|
|
6.9
|
|
72.3
|
|
|
|
Security
|
|
28.3
|
|
32.3
|
|
60.6
|
|
|
|
Segment
Profit
|
|
430.6
|
|
99.6
|
|
530.2
|
|
|
|
Corporate
Overhead
|
|
(52.1)
|
|
4.6
|
|
(47.5)
|
|
|
|
Total
|
|
$
378.5
|
|
$
104.2
|
|
$
482.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
13.0%
|
|
|
|
15.4%
|
|
|
|
Industrial
|
|
11.9%
|
|
|
|
13.2%
|
|
|
|
Security
|
|
5.6%
|
|
|
|
12.0%
|
|
|
|
Segment
Profit
|
|
11.8%
|
|
|
|
14.6%
|
|
|
|
Corporate
Overhead
|
|
(1.4%)
|
|
|
|
(1.3%)
|
|
|
|
Total
|
|
10.4%
|
|
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
and other charges relate primarily to integration and consulting
costs and an incremental freight
charge related to a service provider's bankruptcy.
|
|
3
|
The normalized 2019
and 2018 business segment information, as reconciled to GAAP above,
is considered relevant
to aid analysis of the Company's segment profit results aside from
the material impact of the acquisition-related and other
charges.
|
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP SEGMENT PROFIT FINANCIAL MEASURES TO
CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2019
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related and
Other Charges1
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
1,533.3
|
|
$
44.3
|
|
$
1,577.6
|
|
|
|
Industrial
|
|
334.1
|
|
25.8
|
|
$
359.9
|
|
|
|
Security
|
|
126.6
|
|
85.7
|
|
212.3
|
|
|
|
Segment
Profit
|
|
1,994.0
|
|
155.8
|
|
2,149.8
|
|
|
|
Corporate
Overhead
|
|
(229.5)
|
|
23.4
|
|
(206.1)
|
|
|
|
Total
|
|
$
1,764.5
|
|
$
179.2
|
|
$
1,943.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
15.2%
|
|
|
|
15.7%
|
|
|
|
Industrial
|
|
13.7%
|
|
|
|
14.8%
|
|
|
|
Security
|
|
6.5%
|
|
|
|
10.9%
|
|
|
|
Segment
Profit
|
|
13.8%
|
|
|
|
14.9%
|
|
|
|
Corporate
Overhead
|
|
(1.6%)
|
|
|
|
(1.4%)
|
|
|
|
Total
|
|
12.2%
|
|
|
|
13.5%
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
and other charges relate primarily to integration costs, Security
business transformation and
margin resiliency initiatives.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2018
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related and
Other Charges2
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
1,393.1
|
|
$
142.6
|
|
$
1,535.7
|
|
|
|
Industrial
|
|
319.8
|
|
26.0
|
|
345.8
|
|
|
|
Security
|
|
169.3
|
|
42.2
|
|
211.5
|
|
|
|
Segment
Profit
|
|
1,882.2
|
|
210.8
|
|
2,093.0
|
|
|
|
Corporate
Overhead
|
|
(202.8)
|
|
12.7
|
|
(190.1)
|
|
|
|
Total
|
|
$
1,679.4
|
|
$
223.5
|
|
$
1,902.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
14.2%
|
|
|
|
15.6%
|
|
|
|
Industrial
|
|
14.6%
|
|
|
|
15.8%
|
|
|
|
Security
|
|
8.5%
|
|
|
|
10.7%
|
|
|
|
Segment
Profit
|
|
13.5%
|
|
|
|
15.0%
|
|
|
|
Corporate
Overhead
|
|
(1.5%)
|
|
|
|
(1.4%)
|
|
|
|
Total
|
|
12.0%
|
|
|
|
13.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
and other charges relate primarily to inventory step-up,
integration and consulting costs, a non-
cash fair value adjustment, and an incremental freight charge
related to a service provider's bankruptcy.
|
|
3
|
The normalized 2019
and 2018 business segment information, as reconciled to GAAP above,
is considered relevant
to aid analysis of the Company's segment profit results aside from
the material impact of the acquisition-related and other
charges.
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/stanley-black--decker-reports-full-year-and-4q-2019-results-300994995.html
SOURCE Stanley Black &
Decker