The Stanley Works (SWK, Financial) filed Quarterly Report for the period ended 2011-10-01.
Stanley Works has a market cap of $11.24 billion; its shares were traded at around $66.77 with a P/E ratio of 14.36 and P/S ratio of 1.34. The dividend yield of Stanley Works stocks is 2.46%.
Net sales from continuing operations were $7.640 billion in the first nine months of 2011, representing a $1.643 billion or 27% increase, versus $5.997 billion in the first nine months of 2010. The Merger provided a 15% increase to net sales while other acquisitions (net of divestitures), primarily CRC-Evans and Niscayah, contributed a 5% increase in net sales. Organic sales volume provided an additional 4% and the favorable effects of foreign currency translation resulted in the remaining 3% growth versus the 2010 period. Geographic unit volumes increased 5% in the Americas (22% in Latin America), 2% in Europe and 5% in Asia for the year-to-date period. By segment for the first nine months of 2011, CDIY contributed a 3% organic volume increase, Industrial 12% and Security 1%. The factors affecting the year-to-date organic volume performance are primarily the same as those discussed previously related to the third quarter.
The corporate overhead element of SG&A, which is not allocated to the business segments, amounted to $55 million in each of the third quarters of 2011 and 2010, representing 2.1% of net sales in 2011 and 2.3% of net sales in 2010. Excluding merger and acquisition-related charges, the corporate overhead element of SG&A was $37 million and $48 million in the third quarters of 2011 and 2010, respectively, or 1.4% of net sales in 2011 and 2.0% of net sales in 2010. The decrease in expense from the third quarter of 2010 pertains mainly to a reduction in executive compensation costs associated with the Merger. On a year-to-date basis, the corporate overhead element of SG&A amounted to $172 million in the first nine months of 2011 versus $183 million in the first nine months of 2010. Excluding merger and acquisition-related charges, the corporate overhead element of SG&A was $122 million (1.6% of net sales) and $111 million (1.9% of net sales) in the first nine months of 2011 and 2010, respectively. The increase in spend is primarily attributable to the inclusion of a full nine months of Black & Decker in the current year.
Income Taxes: The Company recognized income tax expense of $33.4 million and $84.4 million for the three and nine month periods ended October 1, 2011, resulting in an effective tax rate of 17.7% and 14.2%, respectively. The effective tax rate differs from the statutory tax rate for the three and nine month periods ended October 1, 2011 primarily due to a portion of the Companys earnings realized in lower-taxed foreign jurisdictions, the realization of benefits attributable to the reduction of certain foreign jurisdiction valuation allowances and the resolution of certain tax positions pertaining to prior years. The income tax expense for the nine month period includes tax benefits of $69.2 million for the favorable settlement of certain tax contingencies partially offset by the inclusion of $17.5 million of uncertain tax positions related to ongoing operational and legal entity integrations. The effective tax rates for the three and nine month periods ended October 2, 2010 were 26.7% and 13.2%, respectively. The effective tax rate differed from the statutory tax rate for the three month period ended October 2, 2010 primarily due to various non-deductible transaction costs and other restructuring costs associated with the Merger, which were partially offset by a favorable effect from the geographic distribution of earnings. The effective tax rate differed from the statutory tax rate for the nine months ended October 2, 2010 primarily due to various non-deductible transaction costs and other restructuring costs associated with the Merger, which were primarily offset by the inclusion of a $35.7 million tax benefit attributable to the favorable settlement of certain tax contingencies. Excluding merger and acquisition related charges and the favorable settlement of tax contingencies, the effective income tax rates for the three months ended October 1, 2011 and October 2, 2010 were 20.0% and 27.0%, respectively. Excluding merger and acquisition-related charges and the favorable settlement of tax contingencies, the effective income tax rates for the nine months ended October 1, 2011 and October 2, 2010 were 23.2% and 28.7%, respectively.
Year-to-date net sales in the Industrial segment were $1.891 billion in 2011 compared to $1.333 billion in 2010, an increase of 42%. The impact of the Merger and other acquisitions (primarily CRC-Evans) provided a 26% increase in net sales. Organic growth provided an additional 12% and favorable foreign currency contributed 4% for the first nine months of 2011. The factors contributing to the year-to-date organic growth performance are largely consistent with those discussed pertaining to the third quarter, as the segment demonstrated strength in all businesses and geographic regions. On a pro-forma basis, the Industrial segment net sales increased 25%, with the acquisition impact, primarily from CRC-Evans, accounting for 10% of the increase, organic growth providing 11% of the increase, along with a 4% benefit from foreign currency translation.
Read the The complete Report
Stanley Works has a market cap of $11.24 billion; its shares were traded at around $66.77 with a P/E ratio of 14.36 and P/S ratio of 1.34. The dividend yield of Stanley Works stocks is 2.46%.
Highlight of Business Operations:
Net Sales: Net sales were $2.636 billion in the third quarter of 2011 compared to $2.369 billion in the third quarter of 2010, representing an increase of $267 million or 11%. Organic sales volume provided a 4% increase in net sales, the impact of acquisitions (primarily Niscayah and CRC-Evans), net of divestitures, provided an additional 4% increase in net sales while the favorable effects of foreign currency translation in all regions, but most significantly in Europe, contributed an additional 3% to net sales. The primary drivers of the organic volume growth continues to be new product introductions resulting in share gains and continued high growth rates in emerging markets, inclusive of continued revenue synergy realizations from the Merger. On a geographic basis, organic sales increased 5% in the Americas (23% in Latin America and 3% in the U.S.), 3% in Europe and 9% in Asia. Excluding the engineered fastening business in Japan and China, where it has experienced the continued effects of the first quarter 2011 Japanese earthquake and tsunami, organic sales in Asia were up 19% as compared to the third quarter of 2010. On a sequential basis, sales volumes within those parts of Asia impacted by the Japanese natural disasters have slightly grown as expected. By segment, organic sales volume increased 3% in CDIY and 10% in Industrial, while organic volume was flat in Security. CDIYs organic volume growth was primarily driven by strength in professional power tools via new product introductions and increased promotional activity on older generation products, partially offset by lower sales volume in hand tools and fastening largely due to soft end markets in the independent and retail channels as well as the ongoing impact of lower volume from Pfister resulting from the loss of business at a major customer in the first quarter of 2011. Organic sales volume growth in the Industrial segment was strong in each major business component and in most geographic regions, led by North America and emerging markets, due primarily to the success of new products and increased market share gains. Within the Security segment, overall organic sales growth was flat, which reflects 12% organic sales growth in the Healthcare Solutions business associated with strong sales in the patient security and radio frequency identification (RFID)-enabled systems product lines, offset by lower installation revenues in electronic security and delays in the remodeling expenditures at a large mechanical access solutions customer.Net sales from continuing operations were $7.640 billion in the first nine months of 2011, representing a $1.643 billion or 27% increase, versus $5.997 billion in the first nine months of 2010. The Merger provided a 15% increase to net sales while other acquisitions (net of divestitures), primarily CRC-Evans and Niscayah, contributed a 5% increase in net sales. Organic sales volume provided an additional 4% and the favorable effects of foreign currency translation resulted in the remaining 3% growth versus the 2010 period. Geographic unit volumes increased 5% in the Americas (22% in Latin America), 2% in Europe and 5% in Asia for the year-to-date period. By segment for the first nine months of 2011, CDIY contributed a 3% organic volume increase, Industrial 12% and Security 1%. The factors affecting the year-to-date organic volume performance are primarily the same as those discussed previously related to the third quarter.
The corporate overhead element of SG&A, which is not allocated to the business segments, amounted to $55 million in each of the third quarters of 2011 and 2010, representing 2.1% of net sales in 2011 and 2.3% of net sales in 2010. Excluding merger and acquisition-related charges, the corporate overhead element of SG&A was $37 million and $48 million in the third quarters of 2011 and 2010, respectively, or 1.4% of net sales in 2011 and 2.0% of net sales in 2010. The decrease in expense from the third quarter of 2010 pertains mainly to a reduction in executive compensation costs associated with the Merger. On a year-to-date basis, the corporate overhead element of SG&A amounted to $172 million in the first nine months of 2011 versus $183 million in the first nine months of 2010. Excluding merger and acquisition-related charges, the corporate overhead element of SG&A was $122 million (1.6% of net sales) and $111 million (1.9% of net sales) in the first nine months of 2011 and 2010, respectively. The increase in spend is primarily attributable to the inclusion of a full nine months of Black & Decker in the current year.
Income Taxes: The Company recognized income tax expense of $33.4 million and $84.4 million for the three and nine month periods ended October 1, 2011, resulting in an effective tax rate of 17.7% and 14.2%, respectively. The effective tax rate differs from the statutory tax rate for the three and nine month periods ended October 1, 2011 primarily due to a portion of the Companys earnings realized in lower-taxed foreign jurisdictions, the realization of benefits attributable to the reduction of certain foreign jurisdiction valuation allowances and the resolution of certain tax positions pertaining to prior years. The income tax expense for the nine month period includes tax benefits of $69.2 million for the favorable settlement of certain tax contingencies partially offset by the inclusion of $17.5 million of uncertain tax positions related to ongoing operational and legal entity integrations. The effective tax rates for the three and nine month periods ended October 2, 2010 were 26.7% and 13.2%, respectively. The effective tax rate differed from the statutory tax rate for the three month period ended October 2, 2010 primarily due to various non-deductible transaction costs and other restructuring costs associated with the Merger, which were partially offset by a favorable effect from the geographic distribution of earnings. The effective tax rate differed from the statutory tax rate for the nine months ended October 2, 2010 primarily due to various non-deductible transaction costs and other restructuring costs associated with the Merger, which were primarily offset by the inclusion of a $35.7 million tax benefit attributable to the favorable settlement of certain tax contingencies. Excluding merger and acquisition related charges and the favorable settlement of tax contingencies, the effective income tax rates for the three months ended October 1, 2011 and October 2, 2010 were 20.0% and 27.0%, respectively. Excluding merger and acquisition-related charges and the favorable settlement of tax contingencies, the effective income tax rates for the nine months ended October 1, 2011 and October 2, 2010 were 23.2% and 28.7%, respectively.
Year-to-date net sales in the Industrial segment were $1.891 billion in 2011 compared to $1.333 billion in 2010, an increase of 42%. The impact of the Merger and other acquisitions (primarily CRC-Evans) provided a 26% increase in net sales. Organic growth provided an additional 12% and favorable foreign currency contributed 4% for the first nine months of 2011. The factors contributing to the year-to-date organic growth performance are largely consistent with those discussed pertaining to the third quarter, as the segment demonstrated strength in all businesses and geographic regions. On a pro-forma basis, the Industrial segment net sales increased 25%, with the acquisition impact, primarily from CRC-Evans, accounting for 10% of the increase, organic growth providing 11% of the increase, along with a 4% benefit from foreign currency translation.
Read the The complete Report
