NEW BRITAIN, Conn.,
July 20, 2018 /PRNewswire/
-- Stanley Black & Decker (NYSE: SWK) today
announced second quarter 2018 financial results.
- 2Q'18 Revenues Totaled $3.6
Billion, Up 11% Versus Prior Year, Headlined By 7% Organic
Growth
- Price Actions In Response To Commodity Inflation And Currency
Yielded 1 Point Of Organic Growth
- 2Q'18 Diluted GAAP EPS Was $1.93;
Excluding Charges, 2Q'18 Diluted EPS Was $2.57, As Price, Lower Expenses And Volume
Leverage More Than Offset The Dilutive Earnings Impact Of Commodity
Inflation And Currency
- Completed $200 Million Share
Repurchase In April 2018
- Revising 2018 Full Year Diluted GAAP EPS Guidance Range To
$7.00 - $7.20 From $7.40 -
$7.60 Reflecting The Impact Of The
Recently Announced EPA Settlement
- Reiterating Adjusted EPS Guidance Range Of $8.30 - $8.50 And
Free Cash Flow Conversion Of Approximately 100%
2Q'18 Key Points:
- Net sales for the quarter were $3.6
billion, up 11% versus prior year, with positive volume
(+6%), acquisitions (+3%), price (+1%) and currency (+1%).
- Gross margin rate for the quarter was 35.3%. Excluding charges,
the gross margin rate was 35.6%, down 210 basis points from prior
year as volume leverage, productivity and price were more than
offset by an anticipated $50 million
of commodity inflation and $20
million in foreign exchange pressure which emerged during
the last 8 weeks of the quarter.
- SG&A expenses were 22.1% of sales. Excluding charges,
SG&A expenses were 21.4% of sales compared to 22.4% in 2Q'17,
reflecting tight cost management and volume leverage which was
partially offset by SFS 2.0 growth investments.
- Restructuring charges for the quarter were $13.4 million. Excluding charges, restructuring
charges for the quarter were $8.9
million compared to $6.3
million in 2Q'17.
- Other, net totaled $119.3 million
for the quarter which includes a $77.7
million charge related to the recently announced EPA
settlement. Excluding charges, Other, net totaled $32.2 million compared to $49.7 million in 2Q'17, reflecting a favorable
resolution of a prior claim, among other items.
- Tax rate was 0.3%. Excluding charges, tax rate was 7.0% versus
the 23.5% in 2Q'17 reflecting the effective settlement of a tax
audit during the quarter. This settlement was initially forecasted
to occur in 3Q'18 and does not impact full year tax rate
expectations.
- Working capital turns for the quarter were 6.6, down 0.7 turns
from prior year resulting from higher inventory balances in Tools
& Storage in anticipation of new product launches, including
Craftsman.
Stanley Black & Decker's
President and CEO, James M. Loree,
commented, "We delivered a strong second quarter performance,
successfully overcoming approximately $70
million of commodity and currency pressure. Total
revenues were up 11%, with each business contributing.
Organic growth accelerated to 7%, headlined by an impressive 10%
growth from Tools & Storage as well as Industrial outperforming
our expectations.
"The underlying markets remain healthy and provide a favorable
backdrop as we execute our robust pipeline of organic growth
initiatives: the Lenox and Irwin revenue synergies, FlexVolt,
emerging markets, e-commerce and the rollout of the Craftsman
brand. We will continue to evaluate further near-term capital
allocation actions to create shareholder value including
acquisition opportunities and incremental share repurchases,
consistent with our long-term capital allocation strategy.
"We are at a moment in time when company-specific growth
catalysts, which are as strong as any time in 20 years, enable us
to vault over difficult prior year revenue comps. At the same
time, we are operating with the agility required to successfully
navigate through a growing series of exogenous shocks, including
cost inflation, FX volatility and tariffs.
"It is a credit to the breadth, depth and maturity of our
management team that we continue to deliver strong financial
results and a great setup for 2019 and beyond."
2Q'18 Segment
Results
|
|
($ in
M)
|
|
|
Sales
|
Profit
|
Charges1
|
Profit Ex-
Charges1
|
Profit
Rate
|
Profit
Rate Ex-
Charges1
|
|
|
|
|
|
|
|
Tools &
Storage
|
$2,568
|
$398.6
|
$17.8
|
$416.4
|
15.5%
|
16.2%
|
|
|
|
|
|
|
|
Industrial
|
$573
|
$85.5
|
$10.9
|
$96.4
|
14.9%
|
16.8%
|
|
|
|
|
|
|
|
Security
|
$503
|
$48.1
|
$
2.0
|
$50.1
|
9.6%
|
10.0%
|
1 See
Merger And Acquisition (M&A) Related Charges On Page
5
|
- Tools & Storage net sales increased 11% versus 2Q'17 due to
volume (+9%), price (+1%) and currency (+1%). Each region
contributed to the 10% organic growth for the quarter with emerging
markets +17%, North America +10%
and Europe +5%. Emerging markets
growth was largely due to mid-price-point product releases, higher
e-commerce volumes, continued benefits from the Russia and Turkey go-to-market model changes and positive
price. North America organic
growth accelerated as new product innovation, including DEWALT
FlexVolt, the initial rollout of the Craftsman brand, a recovery in
outdoor products and pricing actions all delivered growth on top of
a continued healthy U.S. tool market. Europe once again delivered share gains with
growth supported by new products and successful commercial actions.
Overall Tools & Storage segment profit rate was 16.2%,
excluding charges, down from the 2Q'17 rate of 17.6%, as the
benefits from volume leverage, pricing, productivity and cost
control were more than offset by the impacts from commodity
inflation and currency.
- Industrial net sales increased 14% versus 2Q'17 due to
acquisitions (+11%) and currency (+3%). Engineered Fastening
organic revenues were +3% as significant automotive &
industrial fastener penetration gains were partially offset by the
anticipated impact from lower automotive system shipments.
Infrastructure organic revenues were down 10% as higher volumes in
Hydraulic Tools were offset by expected lower pipeline project
activity in Oil & Gas. Overall Industrial segment profit rate
was 16.8%, excluding charges, down from the 2Q'17 rate of 18.8%, as
productivity gains and cost control were offset by the impact of
commodity inflation, growth investments and the modestly dilutive
impact from the acquisition of Nelson Fasteners.
- Security net sales increased 6% versus 2Q'17 as bolt-on
commercial electronic security acquisitions (+4%), currency (+3%)
and price (+1%) were partially offset by lower volume (-2%).
North America organic growth
declined 2% as higher volumes within automatic doors and Healthcare
were offset by lower volume and a difficult comparable in
commercial electronic security. Europe was flat organically as strength within
the Nordics was offset by anticipated weakness in France. Overall Security segment profit rate
was 10.0%, excluding charges, down 100 basis points versus the
prior year rate, which reflects investments to support the business
transformation in commercial electronic security partially offset
by a continued focus on cost containment.
Updated 2018 Outlook
Management is revising its 2018 EPS outlook to $7.00 - $7.20 from
$7.40 - $7.60 on a GAAP basis reflecting the recently
announced settlement with the Environmental Protection Agency
regarding the remediation of the Centredale Superfund site.
More detail can be found in the 8-K filed by the Company on
July 9, 2018.
The Company is reiterating its adjusted EPS range of
$8.30 - $8.50 and its free cash flow conversion estimate
of approximately 100%.
The following reflects the key assumption changes to the
Company's prior EPS outlook:
- Incremental price, cost and productivity actions (+~
$0.48)
- Higher organic volume expectations (+1 point or +~$0.12)
- Benefits from the $200 million
share repurchase executed in 2Q (+~ $0.10)
- Foreign currency impacts from the strengthening of the U.S.
dollar during the second quarter (-~$0.40)
- Higher commodity inflation expectations, including the impact
from the initial $34 billion of
section 301 tariffs (-~ $0.30)
Donald Allan Jr., Executive Vice
President and CFO, commented, "We are taking price and cost actions
to protect our margins in the face of approximately $320 million of transitory headwinds while
delivering strong organic growth of 7% and adjusted earnings per
share growth of 11% - 14% in 2018. The organization remains
focused on strong day-to-day execution and operational excellence,
which includes price realization, productivity and cost management,
the rollout of the Craftsman brand and the successful integration
of our recent acquisitions. 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 2Q'18 were
$126.7 million, primarily related to
restructuring, deal and integration costs, as well as non-cash
inventory step-up charges and the recently announced EPA
settlement. Gross margin included $8.8
million of these charges while SG&A included
$25.5 million. Other, net and
Restructuring included $87.1 million
and $4.5 million of these charges,
respectively. M&A charges in 2Q'18 also included a
$0.8 million charge related to
divestitures.
The Company will host a conference call with investors today,
July 20, 2018, 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
7568278. 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 7568278. 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) 827-3575
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, 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: (i) achieve full year 2018 GAAP EPS of $7.00 – $7.20 and
Adjusted EPS of $8.30 - $8.50; (ii) generate 2018 free cash flow
conversion approximating 100%; (iii) deliver 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 (including successful brand launch in the second half of
2018) and the continued successful integration of Newell Tools while remaining focused on being
one of the world's leading innovators, continuing to deliver
top-quartile financial performance and elevating our commitment to
social responsibility ; (iii) the Company's ability to deliver
overall organic growth of approximately 7.0% in 2018; (iv) the
Company's ability to limit the impact from: commodity inflation of
approximately $205 million; foreign
currency headwinds of approximately $80
million; and the first $34
billion of section 301 tariffs and section 232 steel and
aluminum tariffs of approximately $35
million ; (v) net impact from: closed acquisitions, cost and
price actions and improved productivity being approximately +$1.53
to $1.63 EPS in 2018; and share
repurchase executed in second quarter being approximately
+$0.10 (vi) core (non M&A) restructuring charges being
approximately $50 million in 2018;
(vii) 2018 core tax rate being approximately 18%; (viii) the
Company's ability to identify, close and integrate appropriate
acquisition opportunities, within desired timeframes at reasonable
cost; (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 FLEXVOLT™ product; (xi) the
Company's ability to manage existing Sonitrol franchisee and MAC
Tools 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; (xxiv)
adjustments to the provisional estimates recorded in 2017 for the
enacted U.S. Tax Cuts and Jobs Act based on legislative
developments and refined calculations; and (xxv) 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 Chinese Renminbi,
Canadian Dollar, Euro, British Pound, Brazilian Real or other
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 as well as the impact of any U.S.
tariffs on imported goods; 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
$
3,643.6
|
|
$
3,286.7
|
|
$
6,852.9
|
|
$
6,143.0
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
2,356.5
|
|
2,073.4
|
|
4,400.1
|
|
3,863.7
|
|
|
Gross
margin
|
|
1,287.1
|
|
1,213.3
|
|
2,452.8
|
|
2,279.3
|
|
|
% of Net
Sales
|
|
35.3%
|
|
36.9%
|
|
35.8%
|
|
37.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
805.8
|
|
744.2
|
|
1,591.4
|
|
1,434.5
|
|
|
% of Net Sales
|
|
22.1%
|
|
22.6%
|
|
23.2%
|
|
23.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
481.3
|
|
469.1
|
|
861.4
|
|
844.8
|
|
|
% of Net
Sales
|
|
13.2%
|
|
14.3%
|
|
12.6%
|
|
13.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other -
net
|
|
119.3
|
|
55.3
|
|
177.3
|
|
155.8
|
|
|
Loss (gain) on sales
of businesses
|
|
0.8
|
|
0.9
|
|
0.8
|
|
(268.3)
|
|
|
Pension
settlement
|
|
-
|
|
0.3
|
|
-
|
|
12.8
|
|
|
Restructuring
charges
|
|
13.4
|
|
8.0
|
|
36.3
|
|
23.8
|
|
|
Income from
operations
|
|
347.8
|
|
404.6
|
|
647.0
|
|
920.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest -
net
|
|
53.4
|
|
46.3
|
|
100.8
|
|
89.0
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE
INCOME TAXES
|
|
294.4
|
|
358.3
|
|
546.2
|
|
831.7
|
|
|
Income
taxes
|
|
1.0
|
|
80.7
|
|
82.7
|
|
160.4
|
|
NET
EARNINGS
|
|
293.4
|
|
277.6
|
|
463.5
|
|
671.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to non-controlling interests
|
|
(0.2)
|
|
-
|
|
(0.7)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
ATTRIBUTABLE TO COMMON SHAREOWNERS
|
$
293.6
|
|
$
277.6
|
|
$
464.2
|
|
$
671.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
1.96
|
|
$
1.86
|
|
$
3.09
|
|
$
4.49
|
|
|
Diluted
|
|
$
1.93
|
|
$
1.82
|
|
$
3.03
|
|
$
4.42
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS PER
SHARE
|
|
$
0.63
|
|
$
0.58
|
|
$
1.26
|
|
$
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE SHARES OUTSTANDING (in
thousands)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
149,748
|
|
149,514
|
|
150,101
|
|
149,353
|
|
|
Diluted
|
|
152,494
|
|
152,226
|
|
153,124
|
|
151,862
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
30,
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
385.8
|
|
$
637.5
|
|
Accounts and notes
receivable, net
|
|
2,151.4
|
|
1,628.7
|
|
Inventories,
net
|
|
2,444.2
|
|
2,018.4
|
|
Other current
assets
|
|
341.2
|
|
274.4
|
|
Total current assets
|
|
5,322.6
|
|
4,559.0
|
|
Property, plant and
equipment, net
|
|
1,817.1
|
|
1,742.5
|
|
Goodwill and other
intangibles, net
|
|
12,544.4
|
|
12,283.5
|
|
Other
assets
|
|
495.5
|
|
512.7
|
|
Total assets
|
|
$
20,179.6
|
|
$
19,097.7
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREOWNERS' EQUITY
|
|
|
|
|
Short-term
borrowings
|
|
$
1,101.5
|
|
$
5.3
|
|
Current maturities of
long-term debt
|
|
978.9
|
|
977.5
|
|
Accounts
payable
|
|
2,288.5
|
|
2,021.0
|
|
Accrued
expenses
|
|
1,270.0
|
|
1,387.7
|
|
Total current liabilities
|
|
5,638.9
|
|
4,391.5
|
|
Long-term
debt
|
|
2,831.2
|
|
2,828.2
|
|
Other long-term
liabilities
|
|
3,521.7
|
|
3,573.0
|
|
Stanley Black &
Decker, Inc. shareowners' equity
|
8,185.4
|
|
8,302.2
|
|
Non-controlling
interests' equity
|
|
2.4
|
|
2.8
|
|
Total liabilities and shareowners' equity
|
$
20,179.6
|
|
$
19,097.7
|
STANLEY
BLACK & DECKER, INC. AND SUBSIDIARIES
|
SUMMARY OF CASH
FLOW ACTIVITY
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
$
293.4
|
|
$
277.6
|
|
$
463.5
|
|
$
671.3
|
|
|
Depreciation and
amortization
|
|
|
127.7
|
|
115.8
|
|
251.3
|
|
217.3
|
|
|
Loss (gain) on sales
of businesses
|
|
|
0.8
|
|
0.9
|
|
0.8
|
|
(268.3)
|
|
|
Changes in working
capital1
|
|
|
(185.0)
|
|
(263.7)
|
|
(729.3)
|
|
(797.0)
|
|
|
Other
|
|
|
|
(38.9)
|
|
21.2
|
|
(137.7)
|
|
14.4
|
|
|
Net cash provided
by (used in) operating activities
|
|
|
198.0
|
|
151.8
|
|
(151.4)
|
|
(162.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING AND
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Capital and software
expenditures
|
|
|
(111.7)
|
|
(122.2)
|
|
(218.0)
|
|
(186.9)
|
|
|
Proceeds from
issuances of common stock
|
|
|
9.5
|
|
15.6
|
|
22.6
|
|
32.9
|
|
|
Proceeds from
issuance of preferred stock
|
|
|
-
|
|
727.5
|
|
-
|
|
727.5
|
|
|
(Payments) proceeds
from sales of businesses, net of cash sold
|
|
|
(1.7)
|
|
0.5
|
|
(1.9)
|
|
745.3
|
|
|
Business
acquisitions, net of cash acquired
|
|
|
(505.6)
|
|
5.3
|
|
(506.8)
|
|
(2,430.1)
|
|
|
Net short-term
borrowings (repayments)
|
|
|
753.6
|
|
(593.1)
|
|
1,135.6
|
|
563.6
|
|
|
Net investment hedge
settlements
|
|
|
37.8
|
|
(24.4)
|
|
20.3
|
|
(3.7)
|
|
|
Cash dividends on
common stock
|
|
|
(94.2)
|
|
(86.5)
|
|
(189.1)
|
|
(173.2)
|
|
|
Purchases of common
stock for treasury
|
|
|
(201.3)
|
|
(2.1)
|
|
(212.7)
|
|
(15.6)
|
|
|
Premium paid on
equity option
|
|
|
-
|
|
(25.1)
|
|
(57.3)
|
|
(25.1)
|
|
|
Proceeds related to
deferred purchase price receivable
|
|
|
-
|
|
104.7
|
|
-
|
|
227.8
|
|
|
Effect of exchange
rate changes on cash
|
|
|
(87.8)
|
|
21.1
|
|
(59.9)
|
|
59.2
|
|
|
Other
|
|
|
|
(16.4)
|
|
(11.6)
|
|
(33.1)
|
|
2.9
|
|
|
Net cash (used in)
provided by investing and financing activities
|
|
|
(217.8)
|
|
9.7
|
|
(100.3)
|
|
(475.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease)
increase in cash, cash equivalents and restricted
cash
|
|
|
(19.8)
|
|
161.5
|
|
(251.7)
|
|
(637.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
|
423.2
|
|
378.0
|
|
655.1
|
|
1,177.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
|
$
403.4
|
|
$
539.5
|
|
$
403.4
|
|
$
539.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Computation2
|
|
|
|
|
|
|
|
|
|
|
Operating cash
flow
|
|
|
$
198.0
|
|
$
151.8
|
|
$
(151.4)
|
|
$
(162.3)
|
|
Less: Capital and
software expenditures
|
|
|
(111.7)
|
|
(122.2)
|
|
(218.0)
|
|
(186.9)
|
|
Free cash flow
(before dividends)
|
|
|
$
86.3
|
|
$
29.6
|
|
$
(369.4)
|
|
$
(349.2)
|
|
Impact of recently
adopted accounting standards3
|
|
|
|
|
104.7
|
|
|
|
273.2
|
|
Free cash flow
(before dividends), as previously reported3
|
|
|
|
|
$
134.3
|
|
|
|
$
(76.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Cash, Cash Equivalents and Restricted Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2018
|
|
December 30,
2017
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
385.8
|
|
$
637.5
|
|
|
|
|
|
Restricted cash
included in Other current assets
|
|
|
17.6
|
|
17.6
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
|
|
$
403.4
|
|
$
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 second quarter of 2017 was an inflow of $134.3
million and an outflow of $76.0 million for the three and six
months ended July 1, 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 $104.7
million and $273.2 million for the three and six months ended July
1, 2017, respectively.
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
BUSINESS SEGMENT
INFORMATION
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
2,567.8
|
|
$
2,307.4
|
|
$
4,783.6
|
|
$
4,202.3
|
|
Industrial
|
|
573.1
|
|
503.4
|
|
1,077.3
|
|
983.1
|
|
Security
|
|
502.7
|
|
475.9
|
|
992.0
|
|
957.6
|
|
Total
|
|
$
3,643.6
|
|
$
3,286.7
|
|
$
6,852.9
|
|
$
6,143.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
398.6
|
|
$
371.9
|
|
$
700.0
|
|
$
656.4
|
|
Industrial
|
|
85.5
|
|
94.7
|
|
166.0
|
|
179.8
|
|
Security
|
|
48.1
|
|
51.8
|
|
93.6
|
|
102.5
|
|
Segment
Profit
|
|
532.2
|
|
518.4
|
|
959.6
|
|
938.7
|
|
Corporate
Overhead
|
|
(50.9)
|
|
(49.3)
|
|
(98.2)
|
|
(93.9)
|
|
Total
|
|
$
481.3
|
|
$
469.1
|
|
$
861.4
|
|
$
844.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
15.5%
|
|
16.1%
|
|
14.6%
|
|
15.6%
|
|
Industrial
|
|
14.9%
|
|
18.8%
|
|
15.4%
|
|
18.3%
|
|
Security
|
|
9.6%
|
|
10.9%
|
|
9.4%
|
|
10.7%
|
|
Segment
Profit
|
|
14.6%
|
|
15.8%
|
|
14.0%
|
|
15.3%
|
|
Corporate
Overhead
|
|
(1.4%)
|
|
(1.5%)
|
|
(1.4%)
|
|
(1.5%)
|
|
Total
|
|
13.2%
|
|
14.3%
|
|
12.6%
|
|
13.8%
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER
2018
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges &
Other1
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
1,287.1
|
|
$
8.8
|
|
$
1,295.9
|
|
|
% of Net
Sales
|
|
35.3%
|
|
|
|
35.6%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
805.8
|
|
(25.5)
|
|
$
780.3
|
|
|
% of Net
Sales
|
|
22.1%
|
|
|
|
21.4%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
481.3
|
|
34.3
|
|
515.6
|
|
|
% of Net
Sales
|
|
13.2%
|
|
|
|
14.2%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
294.4
|
|
126.7
|
|
421.1
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
1.0
|
|
28.5
|
|
29.5
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
293.6
|
|
98.2
|
|
391.8
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
1.93
|
|
$
0.64
|
|
$
2.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relates primarily to inventory step-up,
integration and consulting costs, and an environmental remediation
settlement.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER
2017
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges2
|
|
Normalized3
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
$
1,213.3
|
|
$
26.1
|
|
$
1,239.4
|
|
|
% of Net
Sales
|
|
36.9%
|
|
|
|
37.7%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
744.2
|
|
(8.7)
|
|
$
735.5
|
|
|
% of Net
Sales
|
|
22.6%
|
|
|
|
22.4%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
469.1
|
|
34.8
|
|
503.9
|
|
|
% of Net
Sales
|
|
14.3%
|
|
|
|
15.3%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
358.3
|
|
43.0
|
|
401.3
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
80.7
|
|
13.6
|
|
94.3
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
277.6
|
|
29.4
|
|
307.0
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
1.82
|
|
$
0.19
|
|
$
2.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges relate primarily to inventory step-up, integration and
consulting costs.
|
|
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, gain or loss on sales of businesses, and environmental
remediation settlement, 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
|
|
$
2,452.8
|
|
$
10.5
|
|
$
2,463.3
|
|
|
% of Net
Sales
|
|
35.8%
|
|
|
|
35.9%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
1,591.4
|
|
(41.9)
|
|
$
1,549.5
|
|
|
% of Net
Sales
|
|
23.2%
|
|
|
|
22.6%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
861.4
|
|
52.4
|
|
913.8
|
|
|
% of Net
Sales
|
|
12.6%
|
|
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
546.2
|
|
151.8
|
|
698.0
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
82.7
|
|
10.5
|
|
93.2
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
464.2
|
|
141.3
|
|
605.5
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
3.03
|
|
$
0.92
|
|
$
3.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relates primarily to inventory step-up,
integration and consulting costs, 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
|
|
$
2,279.3
|
|
$
32.9
|
|
$
2,312.2
|
|
|
% of Net
Sales
|
|
37.1%
|
|
|
|
37.6%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
1,434.5
|
|
(19.4)
|
|
$
1,415.1
|
|
|
% of Net
Sales
|
|
23.4%
|
|
|
|
23.0%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
844.8
|
|
52.3
|
|
897.1
|
|
|
% of Net
Sales
|
|
13.8%
|
|
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
831.7
|
|
(168.2)
|
|
663.5
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
160.4
|
|
(0.5)
|
|
159.9
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common shareowners
|
671.3
|
|
(167.7)
|
|
503.6
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock
|
$
4.42
|
|
$
(1.10)
|
|
$
3.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relates primarily to inventory step-up,
integration and consulting costs and gain 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, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER
2018
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges1
|
|
Normalized2
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
$
398.6
|
|
$
17.8
|
|
$
416.4
|
|
|
|
Industrial
|
|
85.5
|
|
10.9
|
|
96.4
|
|
|
|
Security
|
|
48.1
|
|
2.0
|
|
50.1
|
|
|
|
Segment
Profit
|
|
532.2
|
|
30.7
|
|
562.9
|
|
|
|
Corporate
Overhead
|
|
(50.9)
|
|
3.6
|
|
(47.3)
|
|
|
|
Total
|
|
$
481.3
|
|
$
34.3
|
|
$
515.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
15.5%
|
|
|
|
16.2%
|
|
|
|
Industrial
|
|
14.9%
|
|
|
|
16.8%
|
|
|
|
Security
|
|
9.6%
|
|
|
|
10.0%
|
|
|
|
Segment
Profit
|
|
14.6%
|
|
|
|
15.4%
|
|
|
|
Corporate
Overhead
|
|
(1.4%)
|
|
|
|
(1.3%)
|
|
|
|
Total
|
|
13.2%
|
|
|
|
14.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER
2017
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges1
|
|
Normalized2
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
371.9
|
|
$
34.1
|
|
$
406.0
|
|
|
|
Industrial
|
|
94.7
|
|
-
|
|
94.7
|
|
|
|
Security
|
|
51.8
|
|
0.7
|
|
52.5
|
|
|
|
Segment
Profit
|
|
518.4
|
|
34.8
|
|
553.2
|
|
|
|
Corporate
Overhead
|
|
(49.3)
|
|
-
|
|
(49.3)
|
|
|
|
Total
|
|
$
469.1
|
|
$
34.8
|
|
$
503.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
16.1%
|
|
|
|
17.6%
|
|
|
|
Industrial
|
|
18.8%
|
|
|
|
18.8%
|
|
|
|
Security
|
|
10.9%
|
|
|
|
11.0%
|
|
|
|
Segment
Profit
|
|
15.8%
|
|
|
|
16.8%
|
|
|
|
Corporate
Overhead
|
|
(1.5%)
|
|
|
|
(1.5%)
|
|
|
|
Total
|
|
14.3%
|
|
|
|
15.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges relate primarily to inventory step-up, integration and
consulting costs.
|
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.
|
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
|
|
$
700.0
|
|
$
32.5
|
|
$
732.5
|
|
|
|
Industrial
|
|
166.0
|
|
12.9
|
|
178.9
|
|
|
|
Security
|
|
93.6
|
|
3.3
|
|
96.9
|
|
|
|
Segment
Profit
|
|
959.6
|
|
48.7
|
|
1,008.3
|
|
|
|
Corporate
Overhead
|
|
(98.2)
|
|
3.7
|
|
(94.5)
|
|
|
|
Total
|
|
$
861.4
|
|
$
52.4
|
|
$
913.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
14.6%
|
|
|
|
15.3%
|
|
|
|
Industrial
|
|
15.4%
|
|
|
|
16.6%
|
|
|
|
Security
|
|
9.4%
|
|
|
|
9.8%
|
|
|
|
Segment
Profit
|
|
14.0%
|
|
|
|
14.7%
|
|
|
|
Corporate
Overhead
|
|
(1.4%)
|
|
|
|
(1.4%)
|
|
|
|
Total
|
|
12.6%
|
|
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2017
|
|
|
|
|
|
Reported
|
|
Acquisition-
Related
Charges1
|
|
Normalized2
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
656.4
|
|
$
51.4
|
|
$
707.8
|
|
|
|
Industrial
|
|
179.8
|
|
-
|
|
179.8
|
|
|
|
Security
|
|
102.5
|
|
0.9
|
|
103.4
|
|
|
|
Segment
Profit
|
|
938.7
|
|
52.3
|
|
991.0
|
|
|
|
Corporate
Overhead
|
|
(93.9)
|
|
-
|
|
(93.9)
|
|
|
|
Total
|
|
$
844.8
|
|
$
52.3
|
|
$
897.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
as a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Storage
|
|
15.6%
|
|
|
|
16.8%
|
|
|
|
Industrial
|
|
18.3%
|
|
|
|
18.3%
|
|
|
|
Security
|
|
10.7%
|
|
|
|
10.8%
|
|
|
|
Segment
Profit
|
|
15.3%
|
|
|
|
16.1%
|
|
|
|
Corporate
Overhead
|
|
(1.5%)
|
|
|
|
(1.5%)
|
|
|
|
Total
|
|
13.8%
|
|
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges relate primarily to inventory step-up, integration and
consulting costs.
|
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.
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/stanley-black--decker-reports-2q-2018-results-300684129.html
SOURCE Stanley Black &
Decker