NEW BRITAIN, Conn.,
Oct. 25, 2018 /PRNewswire/
-- Stanley Black & Decker (NYSE: SWK) today announced
third quarter 2018 financial results.
- 3Q'18 Revenues Totaled $3.5
Billion, Up 4% Versus Prior Year, With Organic Growth Of
4%
- 3Q'18 Diluted GAAP EPS Was $1.65;
Excluding Charges, 3Q'18 Diluted EPS Was $2.08, Up 6%, As Price, Cost Control And Volume
Leverage More Than Offset $135
Million Of Commodity Inflation, Currency And Tariffs
- Announcing New Cost Reduction Program Expected To Deliver
$250 Million In Annual Cost Savings
For 2019
- Revising 2018 Full Year Diluted GAAP EPS Guidance Range To
$5.90 - $6.00 from $7.00 -
$7.20 And Adjusted EPS Guidance Range
Of $8.10 - $8.20 from $8.30 -
$8.50
3Q'18 Key Points:
- Net sales for the quarter were $3.5
billion, up 4% versus prior year, as positive volume (+3%),
acquisitions (+2%) and price (+1%) were partially offset by
currency (-2%).
- Gross margin rate for the quarter was 35.4%. Excluding charges,
the gross margin rate was 35.5%, down 210 basis points from prior
year as volume leverage, productivity and price were more than
offset by external headwinds, including commodity inflation,
foreign exchange and tariffs.
- SG&A expenses were 22.9% of sales. Excluding charges,
SG&A expenses were 21.0% of sales compared to 22.7% in 3Q'17,
primarily reflecting prudent cost management.
- Other, net totaled $59.4 million
for the quarter. Excluding charges, Other, net totaled $51.0 million compared to $55.1 million in 3Q'17.
- Restructuring charges for the quarter were $21.8 million. Excluding certain one-time
charges, restructuring was $11.7
million for the quarter compared to $11.4 million in 3Q'17.
- Tax rate was 18.6%. Excluding charges, tax rate was 19.5%
versus 23.0% in 3Q'17 reflecting the benefits from the recently
enacted U.S. tax legislation and the effective settlement of a tax
audit during the quarter.
- Average diluted shares outstanding for the quarter were 150.6
million versus 152.6 million a year ago, reflecting $500 million of share repurchases executed during
the second and third quarters of 2018.
- Working capital turns for the quarter were 5.7, down 0.8 turns
from prior year resulting from higher inventory balances in Tools
& Storage.
Stanley Black & Decker's
President and CEO, James M. Loree,
commented, "The Company delivered 4% organic growth, 14.5%
operating margin and 6% adjusted EPS growth in the quarter while
coping with $135 million of pre-tax
external headwinds (3.9% of sales) from input cost inflation,
currency and tariffs. During the quarter, the 2018 impact of
these external pressures increased by $50
million, causing us to trim our 2018 EPS outlook by
$0.25 at the mid-point, still up 9%
year-over-year. We are taking cost actions totaling
$250 million as well as additional
pricing actions to preserve our ability to produce 2019 earnings
growth. The cost actions will be substantially complete by
year-end 2018 and the majority of the pricing actions will be
implemented in early first quarter 2019.
"We have an outstanding array of revenue growth catalysts in
place for 2019 and beyond to support continued strong financial
performance and we will not allow the financial benefit from them
to be eroded by external factors outside of our control. The
catalysts include (1) the accelerating Craftsman program rollout
which we now expect to deliver $1
billion in incremental revenue significantly faster than
prior expectations, (2) a new exclusive brand partnership with a
major home center (announced in a separate release), (3) our
growing e-commerce share gains, (4) a robust emerging market growth
program, (5) growing revenue synergies from the Lenox/Irwin
acquisition and (6) continued revenue benefits from FlexVolt and
new innovations. In addition, the recently announced IES
transaction should provide an additional $300 - $400 million
source of 2019 inorganic growth.
"Our seasoned, capable management team has stepped up with
agility and speed to address these external issues which could have
otherwise potentially cast a cloud over this outstanding growth
story."
3Q'18 Segment
Results
|
($ in
M)
|
|
|
Sales
|
Profit
|
Charges1
|
Profit Ex-
Charges1
|
Profit
Rate
|
Profit
Rate Ex-
Charges1
|
|
|
|
|
|
|
|
Tools &
Storage
|
$2,448
|
$356.2
|
$49.7
|
$405.9
|
14.6%
|
16.6%
|
|
|
|
|
|
|
|
Industrial
|
$562
|
$88.4
|
$6.2
|
$94.6
|
15.7%
|
16.8%
|
|
|
|
|
|
|
|
Security
|
$485
|
$47.4
|
$6.6
|
$54.0
|
9.8%
|
11.1%
|
1 See
Merger And Acquisition (M&A) Related Charges On Page
5
|
- Tools & Storage net sales increased 3% versus 3Q'17 due to
volume (+5%), and price (+1%) partially offset by currency (-3%).
The impact of pricing expanded 50 basis points sequentially
reflecting the incremental benefit from our 3Q pricing actions.
Each region contributed to the strong organic growth for the
quarter with emerging markets +10%, North
America +6% and Europe +3%.
Emerging markets growth was due to continued benefits from
executing our mid-price-point product and e-commerce strategies as
well as the impact from pricing actions. North America organic growth was driven by
continued benefits from new product innovation, the rollout of the
Craftsman brand and price realization, partially offset by the
unfavorable volume impact of brand transitions at a major home
center. Europe growth was
supported by new products and successful commercial actions
overcoming market pressure and customer transitions in the UK.
Overall Tools & Storage segment profit rate was 16.6%,
excluding charges, down from the 3Q'17 rate of 17.3%, as the
benefits from volume leverage, pricing and cost control were more
than offset by the impacts from currency, commodity inflation and
tariffs.
- Industrial net sales increased 10% versus 3Q'17 due to
acquisitions (+11%) partially offset by currency (-1%). Engineered
Fastening organic revenues were up 1% as industrial &
automotive fastener penetration gains were partially offset by the
expected impact from lower automotive system volumes.
Infrastructure organic revenues were down 6% due to anticipated
lower pipeline project activity in Oil & Gas partially offset
by growth within Hydraulic Tools. Overall Industrial segment profit
rate was 16.8%, excluding charges, down from the 3Q'17 rate of
18.0%, as productivity gains and cost control were more than offset
by commodity inflation and the modestly dilutive impact from the
acquisition of Nelson Fasteners.
- Security net sales increased 1% versus 3Q'17 as bolt-on
commercial electronic security acquisitions (+3%) and price (+1%)
were partially offset by currency (-2%) and lower volume (-1%).
North America organic growth
declined 1% as higher volumes within automatic doors were offset by
lower installations in commercial electronic security. Europe was flat organically as strength within
the Nordics was offset by weakness in France and the UK. Overall Security segment
profit rate, excluding charges, improved 110 basis points
sequentially to 11.1%, which was down 20 basis points versus the
prior year rate, reflecting investments to support the business
transformation in commercial electronic security partially offset
by a focus on cost containment.
2018 Outlook & Cost Reduction Program
Management is revising its 2018 EPS outlook to $5.90 - $6.00 from
$7.00 - $7.20 on a GAAP basis due to restructuring
charges associated with the cost reduction program announced today,
in addition to the factors below. The Company is reducing its
adjusted EPS range to $8.10 -
$8.20 from $8.30 - $8.50 and
its free cash flow conversion estimate to approximately
90%.
The following reflects the key assumption changes to the
Company's prior adjusted EPS outlook:
- Higher input costs, including tariffs, FX & commodities (-
~$0.25)
- Lower expected organic growth (- ~$0.15)
- Lower anticipated tax rate and other below the line items (+
~$0.15)
Donald Allan Jr., Executive Vice
President and CFO, commented, "Our 2018 guidance now contemplates
$370 million of commodity, currency
and tariff headwinds and delivers strong organic growth of 6% and
adjusted earnings per share growth of 9%. We are pleased with
our expected 2018 performance given the magnitude of the
headwinds.
"As we shift to 2019, we are now preparing for the carry over
effect of the 2018 headwinds. We will continue to pass on
these input cost increases to our customers as price
increases. Additionally, we are taking actions to adjust our
supply chain and cost structure. We anticipate the cost
reduction program to deliver $250
million in annual cost savings in 2019. The pre-tax
restructuring charge is expected to be approximately $125 million and is anticipated to be booked
during the fourth quarter of 2018.
"We continue to take the appropriate actions to protect our
margins and our competitiveness in the face of these external
headwinds and position the business for EPS expansion once again in
2019. The organization remains focused on strong day-to-day
execution and operational excellence and we believe the Company is
well-positioned to deliver sustained above-market organic growth
with operating leverage, strong free cash flow conversion and
top-quartile shareholder returns over the long-term."
Merger And Acquisition ("M&A") Related And Other
Charges
Total M&A related and other charges in 3Q'18 were
$85.4 million, primarily related to
restructuring, deal and integration costs, as well as a non-cash
fair value adjustment and inventory step-up charge. Gross
margin included $3.3 million of these
charges while SG&A included $63.6
million. Other, net and Restructuring included
$8.4 million and $10.1 million of these charges,
respectively.
The Company will host a conference call with investors today,
October 25, 2018, at 8:30 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
3258959. 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 3258959. 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
Michelle Hards
Director, Investor Relations
michelle.hards@sbdinc.com
(860) 827-3913
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) 259-7669
Tim Perra
Vice President, Public Affairs
tim.perra@sbdinc.com
(860) 826-3260
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 12 to 15 for 2018 and 2017, are considered relevant to aid
analysis of the Company's margin and earnings results aside from
the material impact of the acquisition-related charges, non-cash
fair value adjustment, gains or losses on sales of businesses,
one-time environmental settlement charge, and a one-time tax charge
related to the recently enacted U.S. tax legislation.
CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995
Statements in this press release that are not historical,
including but not limited to those regarding the Company's ability
to deliver: (i) financial performance in-line with 2018 guidance
and (ii) sustained above-market organic growth with operating
leverage, strong free cash flow conversion and top-quartile
shareholder returns over the long-term, (collectively, the
"Results"); are "forward-looking statements" and subject to risk
and uncertainty.
The Company's ability to deliver the Results as described above
is based on current expectations and involves inherent risks and
uncertainties, including factors listed below and other factors
that could delay, divert, or change any of them, and could cause
actual outcomes and results to differ materially from current
expectations. In addition to the risks, uncertainties and other
factors discussed in this press release, the risks, uncertainties
and other factors that could cause or contribute to actual results
differing materially from those expressed or implied in the
forward-looking statements include, without limitation, those set
forth under Item 1A Risk Factors of the Company's Annual Report on
Form 10-K and any material changes thereto set forth in any
subsequent Quarterly Reports on Form 10-Q, or those contained in
the Company's other filings with the Securities and Exchange
Commission, and those set forth below.
The Company's ability to deliver the Results is dependent, or
based, upon: (i) the Company's ability to deliver successful
innovation in its products and services; (ii) the Company's ability
to invest in product, brand and commercialization of the Craftsman
brand and the continued successful integration of Newell Tools and Nelson Fasteners; (iii) the
Company's ability to deliver organic growth; (iv) the Company's
ability to limit the impact from: commodity inflation; foreign
currency headwinds; and the impact of any tariffs on imported
goods, including section 301 tariffs and section 232 steel and
aluminum tariffs ; (v) closed acquisitions, cost and price actions
and improved productivity; and share repurchases (vi) core
(non M&A) restructuring charges; (vii) 2018 core tax rate;
(viii) the Company's ability to identify, successfully close and
integrate appropriate acquisition opportunities, within desired
timeframes at reasonable cost, including the recently announced IES
transaction ; (ix) successful integration of existing and any newly
acquired businesses and formation of new business platforms; (x)
the continued acceptance of technologies used in the Company's
products and services, including DEWALT FLEXVOLTâ„¢ product; (xi) the
Company's ability to manage existing franchisee relationships;
(xii) the Company's ability to minimize costs associated with any
sale or discontinuance of a business or product line, including any
severance, restructuring, legal or other costs; (xiii) the proceeds
realized with respect to any business or product line disposals;
(xiv) the extent of any asset impairments with respect to any
businesses or product lines that are sold or discontinued; (xv) the
success of the Company's efforts to manage freight costs, steel and
other commodity costs as well as capital expenditures; (xvi) the
Company's ability to sustain or increase prices in order to, among
other things, offset or mitigate the impact of steel, aluminum,
freight, energy, non-ferrous commodity and other commodity costs
and any inflation increases and/or currency impacts; (xvii) the
Company's ability to generate free cash flow and maintain a strong
debt to capital ratio; (xviii) the Company's ability to identify
and effectively execute productivity improvements and cost
reductions, while minimizing any associated restructuring charges;
(xix) the Company's ability to obtain favorable settlement of tax
audits; (xx) the ability of the Company to generate earnings
sufficient to realize future income tax benefits during periods
when temporary differences become deductible; (xxi) the continued
ability of the Company to access credit markets under satisfactory
terms; (xxii) the Company's ability to negotiate satisfactory price
and payment terms under which the Company buys and sells goods,
services, materials and products; (xxiii) the Company's ability to
successfully develop, market and achieve sales from new products
and services; and (xxiv) the ability of the Company to proactively
manage the impact of the legislative changes brought about by the
U.S. Tax Cuts and Jobs Act.
The Company's ability to deliver the Results is also dependent
upon: (i) the success of the Company's marketing and sales efforts,
including the ability to develop and market new and innovative
products at the right price points in both existing and new
markets; (ii) the ability of the Company to maintain or improve
production rates in the Company's manufacturing facilities, respond
to significant changes in product demand and fulfill demand for new
and existing products; (iii) the Company's ability to continue
improvements in working capital through effective management of
accounts receivable and inventory levels; (iv) the ability to
continue successfully managing and defending claims and litigation;
(v) the success of the Company's efforts to mitigate any adverse
earnings impact resulting from significant currency fluctuations;
(vi) the geographic distribution of the Company's earnings; (vii)
the commitment to and success of the Stanley Fulfillment System
including, core innovation, breakthrough innovation, digital and
commercial excellence and functional transformation; and (viii)
successful implementation with expected results of cost reduction
programs.
The Company's ability to achieve the Results will also be
affected by external factors. These external factors include:
challenging global geopolitical and macroeconomic environment,
possibly including impact from "Brexit" or other similar actions
from other EU member states; the economic environment of emerging
markets, particularly Latin
America, Russia,
China and Turkey; pricing pressure and other changes
within competitive markets; the continued consolidation of
customers particularly in consumer channels; inventory management
pressures on the Company's customers; the impact tightened credit
markets may have on the Company or its customers or suppliers; 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; increasing
competition; changes in laws, regulations and policies that affect
the Company, including, but not limited to trade, monetary, tax and
fiscal policies and laws; the timing and extent of any inflation or
deflation; the impact of poor weather conditions on sales; currency
exchange fluctuations; the impact of dollar/foreign currency
exchange and interest rates on the competitiveness of products and
the Company's debt program; the strength of the U.S. and European
economies; the impact from demand changes within world-wide markets
associated with homebuilding and remodeling; the impact of events
that cause or may cause disruption in the Company's supply,
manufacturing, distribution and sales networks such as war,
terrorist activities, and political unrest, including hostilities
on the Korean Peninsula; and recessionary or expansive trends in
the economies of the world in which the Company operates. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances that
may arise after the date hereof.
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited,
Millions of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
$
3,494.8
|
|
$
3,359.4
|
|
$ 10,347.7
|
|
$
9,502.4
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
2,256.4
|
|
2,106.4
|
|
6,656.5
|
|
5,970.1
|
|
|
Gross
margin
|
|
1,238.4
|
|
1,253.0
|
|
3,691.2
|
|
3,532.3
|
|
|
% of Net
Sales
|
|
35.4%
|
|
37.3%
|
|
35.7%
|
|
37.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
798.9
|
|
768.9
|
|
2,390.3
|
|
2,203.4
|
|
|
% of Net
Sales
|
|
22.9%
|
|
22.9%
|
|
23.1%
|
|
23.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
439.5
|
|
484.1
|
|
1,300.9
|
|
1,328.9
|
|
|
% of Net
Sales
|
|
12.6%
|
|
14.4%
|
|
12.6%
|
|
14.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other -
net
|
|
59.4
|
|
60.5
|
|
236.7
|
|
216.3
|
|
|
Loss (gain) on sales
of businesses
|
|
-
|
|
3.2
|
|
0.8
|
|
(265.1)
|
|
|
Pension
settlement
|
|
-
|
|
-
|
|
-
|
|
12.8
|
|
|
Restructuring
charges
|
|
21.8
|
|
19.1
|
|
58.1
|
|
42.9
|
|
|
Income from
operations
|
|
358.3
|
|
401.3
|
|
1,005.3
|
|
1,322.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest -
net
|
|
53.4
|
|
46.9
|
|
154.2
|
|
135.9
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE
INCOME TAXES
|
|
304.9
|
|
354.4
|
|
851.1
|
|
1,186.1
|
|
|
Income
taxes
|
|
56.6
|
|
79.9
|
|
139.3
|
|
240.3
|
|
NET
EARNINGS
|
|
248.3
|
|
274.5
|
|
711.8
|
|
945.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net gain (loss)
attributable to non-controlling interests
|
0.5
|
|
-
|
|
(0.2)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
ATTRIBUTABLE TO COMMON SHAREOWNERS
|
$
247.8
|
|
$
274.5
|
|
$
712.0
|
|
$
945.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.67
|
|
$
1.83
|
|
$
4.77
|
|
$
6.33
|
|
|
Diluted
|
|
$
1.65
|
|
$
1.80
|
|
$
4.68
|
|
$
6.22
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS PER
SHARE
|
|
$
0.66
|
|
$
0.63
|
|
$
1.92
|
|
$
1.79
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE SHARES OUTSTANDING (in
thousands)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
147,964
|
|
149,689
|
|
149,311
|
|
149,464
|
|
|
Diluted
|
|
150,599
|
|
152,622
|
|
152,225
|
|
152,106
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
September
29,
|
|
December
30,
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
368.7
|
|
$
637.5
|
|
Accounts and notes
receivable, net
|
|
2,236.2
|
|
1,628.7
|
|
Inventories,
net
|
|
2,649.7
|
|
2,018.4
|
|
Other current
assets
|
|
300.8
|
|
274.4
|
|
Total current assets
|
|
5,555.4
|
|
4,559.0
|
|
Property, plant and
equipment, net
|
|
1,846.2
|
|
1,742.5
|
|
Goodwill and other
intangibles, net
|
|
12,554.1
|
|
12,283.5
|
|
Other
assets
|
|
492.0
|
|
512.7
|
|
Total assets
|
|
$
20,447.7
|
|
$
19,097.7
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREOWNERS' EQUITY
|
|
|
|
|
Short-term
borrowings
|
|
$
1,408.1
|
|
$
5.3
|
|
Current maturities of
long-term debt
|
|
979.6
|
|
977.5
|
|
Accounts
payable
|
|
2,320.2
|
|
2,021.0
|
|
Accrued
expenses
|
|
1,344.1
|
|
1,387.7
|
|
Total current liabilities
|
|
6,052.0
|
|
4,391.5
|
|
Long-term
debt
|
|
2,830.6
|
|
2,828.2
|
|
Other long-term
liabilities
|
|
3,480.0
|
|
3,573.0
|
|
Stanley Black &
Decker, Inc. shareowners' equity
|
8,082.2
|
|
8,302.2
|
|
Non-controlling
interests' equity
|
|
2.9
|
|
2.8
|
|
Total liabilities and shareowners' equity
|
$
20,447.7
|
|
$
19,097.7
|
STANLEY
BLACK & DECKER, INC. AND SUBSIDIARIES
|
SUMMARY OF CASH
FLOW ACTIVITY
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
$
248.3
|
|
$
274.5
|
|
$
711.8
|
|
$
945.8
|
|
|
Depreciation and
amortization
|
|
|
129.7
|
|
120.7
|
|
381.0
|
|
338.0
|
|
|
Loss (gain) on sales
of businesses
|
|
|
-
|
|
3.2
|
|
0.8
|
|
(265.1)
|
|
|
Changes in working
capital1
|
|
|
(287.8)
|
|
(456.9)
|
|
(1,017.1)
|
|
(1,253.9)
|
|
|
Other
|
|
|
|
101.3
|
|
174.1
|
|
(36.4)
|
|
188.5
|
|
|
Net cash provided
by (used in) operating activities
|
|
|
191.5
|
|
115.6
|
|
40.1
|
|
(46.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING AND
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Capital and software
expenditures
|
|
|
(109.4)
|
|
(91.0)
|
|
(327.4)
|
|
(277.9)
|
|
|
(Payments) proceeds
from sales of businesses, net of cash sold
|
|
|
(1.1)
|
|
-
|
|
(3.0)
|
|
745.3
|
|
|
Business
acquisitions, net of cash acquired
|
|
|
(15.1)
|
|
(152.0)
|
|
(521.9)
|
|
(2,582.1)
|
|
|
Net investment hedge
settlements
|
|
|
(5.1)
|
|
(27.9)
|
|
15.2
|
|
(31.6)
|
|
|
Proceeds related to
deferred purchase price receivable
|
|
|
-
|
|
241.3
|
|
-
|
|
469.1
|
|
|
Stock purchase
contract fees
|
|
|
(10.1)
|
|
(9.9)
|
|
(30.3)
|
|
(9.9)
|
|
|
Net short-term
borrowings (repayments)
|
|
|
309.5
|
|
(64.4)
|
|
1,445.1
|
|
499.2
|
|
|
Premium paid on
equity option
|
|
|
-
|
|
-
|
|
(57.3)
|
|
(25.1)
|
|
|
Proceeds from
issuance of preferred stock
|
|
|
-
|
|
-
|
|
-
|
|
727.5
|
|
|
Proceeds from
issuances of common stock
|
|
|
10.2
|
|
14.6
|
|
32.8
|
|
47.5
|
|
|
Purchases of common
stock for treasury
|
|
|
(301.8)
|
|
(0.6)
|
|
(514.5)
|
|
(16.2)
|
|
|
Cash dividends on
common stock
|
|
|
(97.4)
|
|
(94.7)
|
|
(286.5)
|
|
(267.9)
|
|
|
Effect of exchange
rate changes on cash
|
|
|
5.8
|
|
22.3
|
|
(54.1)
|
|
81.5
|
|
|
Other
|
|
|
|
(11.7)
|
|
(9.5)
|
|
(24.6)
|
|
(6.6)
|
|
|
Net cash used in
investing and financing activities
|
|
|
(226.2)
|
|
(171.8)
|
|
(326.5)
|
|
(647.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash,
cash equivalents and restricted cash
|
|
|
(34.7)
|
|
(56.2)
|
|
(286.4)
|
|
(693.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
|
403.4
|
|
539.5
|
|
655.1
|
|
1,177.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
|
$
368.7
|
|
$
483.3
|
|
$
368.7
|
|
$
483.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Computation2
|
|
|
|
|
|
|
|
|
|
|
Operating cash
flow
|
|
|
$
191.5
|
|
$
115.6
|
|
$
40.1
|
|
$
(46.7)
|
|
Less: Capital and
software expenditures
|
|
|
(109.4)
|
|
(91.0)
|
|
(327.4)
|
|
(277.9)
|
|
Free cash flow
(before dividends)
|
|
|
$
82.1
|
|
$
24.6
|
|
$
(287.3)
|
|
$
(324.6)
|
|
Impact of recently
adopted accounting standards3
|
|
|
|
|
241.3
|
|
|
|
514.5
|
|
Free cash flow
(before dividends), as previously reported3
|
|
|
|
|
$
265.9
|
|
|
|
$
189.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Cash, Cash Equivalents and Restricted Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 29,
2018
|
|
December 30,
2017
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
368.7
|
|
$
637.5
|
|
|
|
|
|
Restricted cash
included in Other current assets
|
|
|
-
|
|
17.6
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
$
368.7
|
|
$
655.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
3
|
Free cash flow as
reported in the third quarter of 2017 was an inflow of $265.9
million and $189.9 million for the three and nine months ended
September 30, 2017, respectively. As a result of the adoption
of Accounting Standards Update ("ASU") 2016-15, "Classification of
Certain Cash Receipts and Cash Payments" and ASU 2016-18,
"Restricted Cash," free cash flow has decreased by $241.3 million
and $514.5 million for the three and nine months ended September
30, 2017, respectively.
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
BUSINESS SEGMENT
INFORMATION
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
2,448.0
|
|
$
2,369.2
|
|
$
7,231.6
|
|
$
6,571.5
|
|
Industrial
|
|
562.0
|
|
510.9
|
|
1,639.3
|
|
1,494.0
|
|
Security
|
|
484.8
|
|
479.3
|
|
1,476.8
|
|
1,436.9
|
|
Total
|
|
$
3,494.8
|
|
$
3,359.4
|
|
$
10,347.7
|
|
$
9,502.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
356.2
|
|
$
394.1
|
|
$
1,056.2
|
|
$
1,050.5
|
|
Industrial
|
|
88.4
|
|
92.2
|
|
254.4
|
|
272.0
|
|
Security
|
|
47.4
|
|
54.0
|
|
141.0
|
|
156.5
|
|
Segment
Profit
|
|
492.0
|
|
540.3
|
|
1,451.6
|
|
1,479.0
|
|
Corporate
Overhead
|
|
(52.5)
|
|
(56.2)
|
|
(150.7)
|
|
(150.1)
|
|
Total
|
|
$
439.5
|
|
$
484.1
|
|
$
1,300.9
|
|
$
1,328.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
14.6%
|
|
16.6%
|
|
14.6%
|
|
16.0%
|
|
Industrial
|
|
15.7%
|
|
18.0%
|
|
15.5%
|
|
18.2%
|
|
Security
|
|
9.8%
|
|
11.3%
|
|
9.5%
|
|
10.9%
|
|
Segment
Profit
|
|
14.1%
|
|
16.1%
|
|
14.0%
|
|
15.6%
|
|
Corporate
Overhead
|
|
(1.5%)
|
|
(1.7%)
|
|
(1.5%)
|
|
(1.6%)
|
|
Total
|
|
12.6%
|
|
14.4%
|
|
12.6%
|
|
14.0%
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER
2018
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges1
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
1,238.4
|
|
$
3.3
|
|
$
1,241.7
|
|
|
% of Net
Sales
|
|
35.4%
|
|
|
|
35.5%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
798.9
|
|
(63.6)
|
|
$
735.3
|
|
|
% of Net
Sales
|
|
22.9%
|
|
|
|
21.0%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
439.5
|
|
66.9
|
|
506.4
|
|
|
% of Net
Sales
|
|
12.6%
|
|
|
|
14.5%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
304.9
|
|
85.4
|
|
390.3
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
56.6
|
|
19.5
|
|
76.1
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
247.8
|
|
65.9
|
|
313.7
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
1.65
|
|
$
0.43
|
|
$
2.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges relate primarily to inventory step-up, integration and
consulting costs, and a non-cash fair value adjustment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER
2017
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges &
Other2
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
1,253.0
|
|
$
9.6
|
|
$
1,262.6
|
|
|
% of Net
Sales
|
|
37.3%
|
|
|
|
37.6%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
768.9
|
|
(7.4)
|
|
$
761.5
|
|
|
% of Net
Sales
|
|
22.9%
|
|
|
|
22.7%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
484.1
|
|
17.0
|
|
501.1
|
|
|
% of Net
Sales
|
|
14.4%
|
|
|
|
14.9%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
354.4
|
|
33.3
|
|
387.7
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
79.9
|
|
9.3
|
|
89.2
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
274.5
|
|
24.0
|
|
298.5
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
1.80
|
|
$
0.15
|
|
$
1.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relates primarily to inventory step-up,
integration and consulting costs, and gains or losses on sales of
businesses.
|
|
3
|
The normalized 2018
and 2017 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
charges, non-cash fair value adjustment, and gains or losses on
sales of businesses, as applicable.
|
|
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
2018
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges &
Other1
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
3,691.2
|
|
$
13.8
|
|
$
3,705.0
|
|
|
% of Net
Sales
|
|
35.7%
|
|
|
|
35.8%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
2,390.3
|
|
(105.5)
|
|
$
2,284.8
|
|
|
% of Net
Sales
|
|
23.1%
|
|
|
|
22.1%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
1,300.9
|
|
119.3
|
|
1,420.2
|
|
|
% of Net
Sales
|
|
12.6%
|
|
|
|
13.7%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
851.1
|
|
237.2
|
|
1,088.3
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
139.3
|
|
30.0
|
|
169.3
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
712.0
|
|
207.2
|
|
919.2
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
4.68
|
|
$
1.36
|
|
$
6.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
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, and a tax charge related
to recently enacted U.S. tax legislation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2017
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges &
Other2
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
3,532.3
|
|
$
42.5
|
|
$
3,574.8
|
|
|
% of Net
Sales
|
|
37.2%
|
|
|
|
37.6%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
2,203.4
|
|
(26.8)
|
|
$
2,176.6
|
|
|
% of Net
Sales
|
|
23.2%
|
|
|
|
22.9%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
1,328.9
|
|
69.3
|
|
1,398.2
|
|
|
% of Net
Sales
|
|
14.0%
|
|
|
|
14.7%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
1,186.1
|
|
(134.9)
|
|
1,051.2
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
240.3
|
|
8.8
|
|
249.1
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
945.8
|
|
(143.7)
|
|
802.1
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
6.22
|
|
$
(0.95)
|
|
$
5.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relates primarily to inventory step-up,
integration and consulting costs and gains or losses on sales of
businesses.
|
|
3
|
The normalized 2018
and 2017 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
charges, non-cash fair value adjustment, gain or loss on sales of
businesses, environmental remediation settlement, and a tax charge
related to recently enacted U.S. tax legislation, as
applicable.
|
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP SEGMENT PROFIT FINANCIAL MEASURES TO
CORRESPONDING
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER
2018
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges1
|
|
Normalized2
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
356.2
|
|
$
49.7
|
|
$
405.9
|
|
|
|
Industrial
|
|
88.4
|
|
6.2
|
|
94.6
|
|
|
|
Security
|
|
47.4
|
|
6.6
|
|
54.0
|
|
|
|
Segment
Profit
|
|
492.0
|
|
62.5
|
|
554.5
|
|
|
|
Corporate
Overhead
|
|
(52.5)
|
|
4.4
|
|
(48.1)
|
|
|
|
Total
|
|
$
439.5
|
|
$
66.9
|
|
$
506.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
14.6%
|
|
|
|
16.6%
|
|
|
|
Industrial
|
|
15.7%
|
|
|
|
16.8%
|
|
|
|
Security
|
|
9.8%
|
|
|
|
11.1%
|
|
|
|
Segment
Profit
|
|
14.1%
|
|
|
|
15.9%
|
|
|
|
Corporate
Overhead
|
|
(1.5%)
|
|
|
|
(1.4%)
|
|
|
|
Total
|
|
12.6%
|
|
|
|
14.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER
2017
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges1
|
|
Normalized2
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
394.1
|
|
$
16.8
|
|
$
410.9
|
|
|
|
Industrial
|
|
92.2
|
|
-
|
|
92.2
|
|
|
|
Security
|
|
54.0
|
|
-
|
|
54.0
|
|
|
|
Segment
Profit
|
|
540.3
|
|
16.8
|
|
557.1
|
|
|
|
Corporate
Overhead
|
|
(56.2)
|
|
0.2
|
|
(56.0)
|
|
|
|
Total
|
|
$
484.1
|
|
$
17.0
|
|
$
501.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
16.6%
|
|
|
|
17.3%
|
|
|
|
Industrial
|
|
18.0%
|
|
|
|
18.0%
|
|
|
|
Security
|
|
11.3%
|
|
|
|
11.3%
|
|
|
|
Segment
Profit
|
|
16.1%
|
|
|
|
16.6%
|
|
|
|
Corporate
Overhead
|
|
(1.7%)
|
|
|
|
(1.7%)
|
|
|
|
Total
|
|
14.4%
|
|
|
|
14.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges relate primarily to inventory step-up, integration and
consulting costs, and a non-cash fair value adjustment, as
applicable.
|
2
|
The normalized 2018
and 2017 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 charges and non-cash fair value adjustment, as
applicable.
|
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
2018
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges1
|
|
Normalized2
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
1,056.2
|
|
$
82.2
|
|
$
1,138.4
|
|
|
|
Industrial
|
|
254.4
|
|
19.1
|
|
273.5
|
|
|
|
Security
|
|
141.0
|
|
9.9
|
|
150.9
|
|
|
|
Segment
Profit
|
|
1,451.6
|
|
111.2
|
|
1,562.8
|
|
|
|
Corporate
Overhead
|
|
(150.7)
|
|
8.1
|
|
(142.6)
|
|
|
|
Total
|
|
$
1,300.9
|
|
$
119.3
|
|
$
1,420.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
14.6%
|
|
|
|
15.7%
|
|
|
|
Industrial
|
|
15.5%
|
|
|
|
16.7%
|
|
|
|
Security
|
|
9.5%
|
|
|
|
10.2%
|
|
|
|
Segment
Profit
|
|
14.0%
|
|
|
|
15.1%
|
|
|
|
Corporate
Overhead
|
|
(1.5%)
|
|
|
|
(1.4%)
|
|
|
|
Total
|
|
12.6%
|
|
|
|
13.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2017
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges1
|
|
Normalized2
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
1,050.5
|
|
$
68.2
|
|
$
1,118.7
|
|
|
|
Industrial
|
|
272.0
|
|
-
|
|
272.0
|
|
|
|
Security
|
|
156.5
|
|
0.9
|
|
157.4
|
|
|
|
Segment
Profit
|
|
1,479.0
|
|
69.1
|
|
1,548.1
|
|
|
|
Corporate
Overhead
|
|
(150.1)
|
|
0.2
|
|
(149.9)
|
|
|
|
Total
|
|
$
1,328.9
|
|
$
69.3
|
|
$
1,398.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
16.0%
|
|
|
|
17.0%
|
|
|
|
Industrial
|
|
18.2%
|
|
|
|
18.2%
|
|
|
|
Security
|
|
10.9%
|
|
|
|
11.0%
|
|
|
|
Segment
Profit
|
|
15.6%
|
|
|
|
16.3%
|
|
|
|
Corporate
Overhead
|
|
(1.6%)
|
|
|
|
(1.6%)
|
|
|
|
Total
|
|
14.0%
|
|
|
|
14.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges relate primarily to inventory step-up, integration and
consulting costs, and a non-cash fair value adjustment, as
applicable.
|
2
|
The normalized 2018
and 2017 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 charges and non-cash fair value adjustment, as
applicable.
|
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SOURCE Stanley Black &
Decker