Stanley Black & Decker, Inc. Announces Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended December 31, 2011; Provides Earnings Guidance for the Year of 2012
January 26, 2012 at 03:11 am IST
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Stanley Black & Decker, Inc. announced unaudited consolidated financial results for the fourth quarter and year ended December 31, 2011. For the quarter, the company reported net sales of $2,791.9 million against $2,394.4 million a year ago. Income from operations was $207.0 million against $199.8 million a year ago. Earnings from continuing operations before income taxes were $176.9 million against $168.6 million a year ago. Net earnings from continuing operations were $174.3 million or $1.05 per diluted share against $139.9 million or $0.83 per diluted share a year ago. Net earnings from continuing operations attributable to common shareowners were $174.8 million or $0.99 per diluted share against $140.4 million or $0.81 per diluted share a year ago. Net cash provided by operating activities was $544.2 million against $353.8 million a year ago. Capital and software expenditures was $105.7 million against $82.4 million a year ago. Normalized earnings from continuing operations before income taxes was $260.5 million against $207.3 million a year ago. Normalized income taxes on continuing operations was $33.4 million against $26.7 million a year ago. Normalized net earnings from continuing operations was $227.6 million or $1.36 per diluted share against $181.1 million or $1.07 per diluted share a year ago. Normalized net cash provided by operating activities was $615.8 million against $533.6 million a year ago.
For the year, the company reported net sales of $10,376.4 million against $8,343.9 million a year ago. Income from operations was $893.1 million against $340.4 million a year ago. Earnings from continuing operations before income taxes were $779.8 million against $239.8 million a year ago. Net earnings from continuing operations were $691.2 million or $4.06 per diluted share against $202.1 million or $1.35 per diluted share a year ago. Net earnings from continuing operations attributable to common shareowners were $674.6 million or $3.97 per diluted share against $198.2 million or $1.32 per diluted share a year ago. Net cash provided by operating activities was $998.9 million against $739.3 million a year ago. Capital and software expenditures was $302.1 million against $185.5 million a year ago. Normalized earnings from continuing operations before income taxes was $1,035.7 million against $778.2 million a year ago. Normalized income taxes on continuing operations was $144.9 million against $155 million a year ago. Normalized net earnings from continuing operations was $890.9 million or $5.24 per diluted share against $623.2 million or $4.15 per diluted share a year ago. Normalized net cash provided by operating activities was $1,217.3 million against $1,120.9 million a year ago.
The company expects full year 2012 EPS to be in the range of $5.75 - $6.00, excluding M&A related charges, based on the following assumptions: Organic net sales to increase 1-2% from a 2011 pro forma (to include Niscayah) revenue base of $11 billion. This includes the impact of revenue synergies from the Black & Decker merger. As previously communicated, the company expects to realize $115 million in cost synergies related to the Black & Decker merger and $45 million due to the Niscayah acquisition in 2012, which together should drive $0.70 of EPS. The tax rate will be approximately 22-23%, creating a $0.55 headwind compared to the 2011 rate of 14.0%. Interest expense to approximate $130 million.
Stanley Black & Decker, Inc. specializes in the design, manufacturing and marketing of tools and engineering solutions for professional, industrial and construction and consumer use. Net sales break down by family of products as follows:
- electric tools and accessories (71.1%): tools and electric devices (drills wire, sanders, saws, grinders, batteries, etc.), garden tools (shears, cutting edge, trimmers, aerators , grinders, chainsaws, etc.), vacuum cleaners, lamps, lights, battery chargers, starter batteries, power converters, hand tools (measuring and leveling tools, planes, hammers, knives, blades, screwdrivers, saws, etc.), consumer mechanics tools (wrenches and sockets), plastic tool boxes, pneumatic tools and fasteners (nail guns, staplers, staples, etc.);
- industrial products (16.2%): professional and automotive mechanics tools (wrenches, sockets, electronic diagnostic tools, etc.), storage systems, plumbing, heating and air conditioning tools (pipe wrenches, pliers, tubing cutters, etc.), hydraulic tools, etc.;
- access and security products (12.7%): automatic doors, door closers, emergency exit devices, locking mechanisms, integrated security devices, etc.
Net sales are distributed geographically as follows: the United States (60.5%), Canada (4.7%), Americas (4.2%), France (4%), Europe (19.2%) and Asia (7.4%).
Stanley Black & Decker, Inc. Announces Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended December 31, 2011; Provides Earnings Guidance for the Year of 2012