Stanley Updates 2009 Full Year Guidance
05 Novembro 2009 - 7:10PM
PR Newswire (US)
Will Record One Time Charge Of $18.0 Million In Fourth Quarter 2009
Related To Black & Decker Transaction No Change In Operational
Outlook NEW BRITAIN, Conn., Nov. 5 /PRNewswire-FirstCall/ -- The
Stanley Works (NYSE:SWK) today updated its full year 2009 guidance
to reflect one time costs associated with its proposed merger with
The Black & Decker Corporation (NYSE:BDK), which was announced
November 2, 2009. The Company expects to record a one time charge
in the fourth quarter of 2009 of $18.0 million, reflecting fees and
expenses related to the Black & Decker transaction, the
majority of which are non tax-deductible. As a result, the Company
is revising its previous full year 2009 earnings per share guidance
of $2.84-$2.94 per share to $2.61-$2.71 per share. Management
continues to expect gross margins of 40% and free cash flow to be
in excess of $300 million for the full year. The revision in the
Company's guidance does not reflect any change in its operational
outlook. The Stanley Works, an S&P 500 company, is a
diversified worldwide supplier of tools and engineered solutions
for professional, industrial, construction and do-it-yourself use,
and security solutions for commercial applications. More
information about The Stanley Works can be found at
http://www.stanleyworks.com/ and
http://www.stanleyblackanddecker.com/. Free cash flow is defined as
cash flow from operations less capital and software expenditures.
Free cash flow does not reflect, among other things, deductions for
mandatory debt service, other borrowing activity, discretionary
dividends on the company's common stock and acquisitions. The
company believes this an important measure of its liquidity, of its
ability to fund future growth and to provide a return to the
shareowners. 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) generate full year 2009 EPS in the
range of $2.61 - 2.71 per fully diluted share; (ii) generate free
cash flow to exceed $300 million for 2009; and (iii) achieve gross
margins of 40% (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, 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 upon: (i) the Company's ability to tailor products and
services with customers' needs; (ii) stabilization in the Company's
end markets; (iii) weaker U.S. dollar versus other major
currencies, lower restructuring charges and a more favorable
effective tax rate; (iv) achieving full year 2009 gross margins of
approximately 40%; (v) successful integration of businesses and
acquisitions(including the completion of the merger with, and
integration of, Black & Decker); (vi) the continued acceptance
of technologies used in the Company's products and services; (vii)
the Company's ability to manage existing Sonitrol franchisee and
Mac Tools distributor relationships; (viii) the Company's ability
to minimize costs associated with any sale or discontinuance, or
acquisition, of a business or product line, including any
severance, restructuring, legal or other costs (including limiting
the fees and cost of the Black & Decker transaction to $18
million in 2009); (ix) the proceeds realized with respect to any
business or product line disposals; (x) the extent of any asset
impairments with respect to any businesses or product lines that
are sold or discontinued; (xi) the success of the Company's efforts
to manage freight costs, steel and other commodity costs; (xii) the
Company's ability to sustain or increase prices in order to, among
other things, offset or mitigate the impact of steel, freight,
energy, non-ferrous commodity and other commodity costs and any
inflation increases; (xiii) the Company's ability to generate free
cash flow and maintain a strong debt to capital ratio; (xiv) the
Company's ability to identify and effectively execute productivity
improvements and cost reductions, while minimizing any associated
restructuring charges; (xv) the Company's ability to obtain
favorable settlement of routine tax audits; (xvi) the ability of
the Company to generate earnings sufficient to realize future
income tax benefits during periods when temporary differences
become deductible; (xvii) the continued ability of the Company to
access credit markets under satisfactory terms; and (xviii) the
Company's ability to negotiate satisfactory payment terms under
which the Company buys and sells goods, services, materials and
products. The Company's ability to deliver the Results is also
dependent upon: (i) the success of the Company's marketing and
sales efforts; (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 cost increases generated by, for example, increases in the cost
of energy or significant Chinese Renminbi or other currency
appreciation; (vi) the geographic distribution of the Company's
earnings; and (vii) the commitment to and success of the Stanley
Fulfillment System. The Company's ability to achieve the Results
will also be affected by external factors. These external factors
include: 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 the 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 in 2009; 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 extent to which
world-wide markets associated with homebuilding and remodeling
continue to deteriorate; the impact of events that cause or may
cause disruption in the Company's manufacturing, distribution and
sales networks such as war, terrorist activities, and political
unrest; and recessionary or expansive trends in the economies of
the world in which the Company operates, including, but not limited
to, the extent and duration of the current recession in the US
economy. 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. DATASOURCE: The
Stanley Works CONTACT: Kate White, Director of Investor Relations,
+1-860-827-3833, Web Site: http://www.stanleyworks.com/
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