Global Cost Reduction Program Delivered
$875 Million of Pre-Tax Run-Rate
Savings Since Initiation; On-Track for Expected $2 Billion Run-Rate Savings by 2025
Gross Margin Expanded Sequentially and Versus
Prior Year Due to Ongoing Inventory Optimization Actions and Lower
Supply Chain Costs
Generated Cash from Operating Activities of
Approximately $440 Million and Free
Cash Flow* of Approximately $360
Million in the Third Quarter Driven by Inventory Reductions;
Inventory Reduced by Approximately $1.7
Billion Since Mid-2022
NEW
BRITAIN, Conn., Oct. 27,
2023 /PRNewswire/ -- Stanley
Black & Decker (NYSE: SWK), a worldwide leader in tools
and outdoor, today announced third quarter 2023 financial results.
- Third Quarter Revenues of $4.0
Billion, Down Versus Prior Year Primarily Due to Lower
Outdoor and DIY Volume as Well as Attachment Tool Customer
Destocking
- Third Quarter Gross Margin Was 26.8%; Third Quarter Adjusted
Gross Margin* Was 27.6%, Up 290 Basis Points Versus Prior Year and
400 Basis Points Sequentially
- Third Quarter Operating Margin Was 6.7%; Third Quarter Adjusted
Operating Margin* Was 8.3%, Up 210 Basis Points Versus Prior
Year
- Third Quarter GAAP EPS Was $0.03;
Third Quarter Adjusted EPS* Was $1.05
- Updating 2023 EPS Guidance Ranges: Full Year GAAP EPS Now
Expected to be ($1.45) to
($1.00) (From ($1.25) to ($0.50)), Raising Adjusted EPS* to $1.10 to $1.40
(From $0.70 to $1.30); Maintaining Free Cash Flow* Range of
$0.6 Billion to $0.9 Billion
Donald Allan, Jr., Stanley
Black & Decker's President & CEO, commented, "We
successfully advanced our strategic business transformation in the
third quarter. Our focused execution resulted in improvements
versus prior year in adjusted gross margins* and earnings per
share* as well as free cash flow*. These performance
improvements provide a solid foundation for additional investments
in innovation and market activation to capture the compelling
long-term growth opportunities in the markets we serve."
"Stanley Black & Decker today
is a more streamlined business, built on the strength of our people
and culture, with intensified focus on the core market leadership
positions in Tools & Outdoor and Industrial. We are planning
for the operating backdrop to remain dynamic; therefore we are
maximizing cost efficiencies in our control and focusing on
innovation-led share gain opportunities with our powerful brands.
Our progress to date is encouraging, and I am confident that by
executing our strategy we are positioning the Company to deliver
higher levels of organic growth*, profitability and cash flow as
well as strong long-term shareholder returns."
*Non-GAAP Financial
Measure As Further Defined On Page 6
|
The Company's primary areas of strategic focus remain
unchanged:
- Advancing innovation, electrification, and global market
penetration to achieve organic revenue growth* of 2 to 3x the
market
- Streamlining and simplifying the organization, and investing in
initiatives that more directly impact our customers and end
users
- Returning adjusted gross margins* to historical 35%+ levels by
accelerating the operations and supply chain transformation to
improve fill rates and better match inventory with customer
demand
- Prioritizing cash flow generation and inventory
optimization
3Q'23 Key Points:
- Net sales for the quarter were $4.0
billion, down 4% versus prior year due to lower volume
(-3%), price (-1%) and the Oil & Gas divestiture (-1%),
moderately offset by currency (+1%).
- Inventory at the end of the quarter was $5.0 billion, down approximately $300 million from the prior quarter and
$1.7 billion since mid-2022 as the
Company's inventory reduction program yields results and supply
chain conditions improved.
- Gross margin for the quarter was 26.8%. Adjusted gross margin*
was 27.6%, up 400 basis points sequentially from second quarter
2023. Adjusted gross margin* was up 290 basis points versus the
prior year rate of 24.7% as lower inventory destocking costs,
supply chain transformation benefits and lower shipping costs more
than offset the impact from lower organic revenue*.
- SG&A expenses were 20.1% of sales for the quarter.
Excluding charges, third quarter adjusted SG&A expenses* were
$765 million or 19.3% of sales, which
was relatively flat versus the prior year on an absolute dollar
basis but up from 18.4% of sales in the prior year due to lower
sales.
3Q'23 Segment Results
($ in M)
|
|
|
Sales
|
Operating
Profit
|
Charges1
|
Adjusted
Operating
Profit*
|
Operating
Margin
|
Adjusted
Operating
Margin*
|
Tools & Outdoor
|
$3,355
|
$273.4
|
$39.4
|
$312.8
|
8.1 %
|
9.3 %
|
|
|
|
|
|
|
|
Industrial
|
$599
|
$ 62.5
|
$10.5
|
$ 73.0
|
10.4 %
|
12.2 %
|
|
1 See
Acquisition-Related And Other Charges On Page 5
|
*Non-GAAP Financial
Measure As Further Defined On Page 6
|
|
- Tools & Outdoor net sales were down 4% versus third quarter
2022 as volume (-3%) and price to support regained margin accretive
cordless promotions (-2%) were moderately offset by currency (+1%).
The overall organic revenue* decline (-5%) was primarily the result
of lower consumer outdoor and DIY market demand. Regional
year-over-year organic revenue* included: North America (-5%), Europe (-3%) and Emerging markets (-4%). Third
quarter U.S. retail point-of-sale demand remained above
pre-pandemic 2019 levels, supported by strength in professional
demand and price. The Tools & Outdoor segment adjusted
operating margin* was 9.3%. The segment adjusted operating margin*
expanded 250 basis points versus third quarter 2022 as reduced
sell-through of high-cost inventory, supply chain transformation
savings and reduced shipping costs were partially offset by lower
organic revenue*.
- Industrial net sales were down 4% versus third quarter 2022 as
price (+2%) and currency (+1%) were more than offset by volume
(-4%) and the Oil & Gas divestiture (-3%). Engineered Fastening
organic revenues* were up 6%, with double digit growth in aerospace
and high-single digit growth in automotive, which was partially
offset by customer destocking in industrial markets. Attachment
Tools organic revenues* were down 26% due to continued customer
inventory reductions. The Industrial segment adjusted operating
margin* was 12.2%, up 110 basis points versus prior year, due to
price realization and cost control.
*Non-GAAP Financial
Measure As Further Defined On Page 6
|
Global Cost Reduction Program Update
The Company continued executing a series of initiatives to
generate cost savings and reduce inventory, with the ultimate
objective of driving long-term growth, improving profitability, and
generating strong cash flow. The Global Cost Reduction
Program is expected to optimize the Company's cost base and
generate savings to fund investments that accelerate growth in the
core businesses. These initiatives are positioned to modestly
exceed the initial 2023 pre-tax run-rate cost savings target of
$1 billion by the end of 2023 and is
on-track to grow to approximately $2
billion by year-end 2025.
Year-to-date, the Company remains ahead of plan and achieved
$675 million of pre-tax run-rate
savings from lower headcount, indirect spend reductions and the
supply chain transformation. The Company also reduced inventory by
approximately $880 million versus
fourth quarter 2022 ending balance and is on track to deliver
approximately $1 billion of inventory
reduction in 2023 to support free cash flow generation. Since
inception, the Global Cost Reduction Program has generated
$875 million in pre-tax run-rate
savings and the Company has reduced inventory by $1.7 billion.
2023 Outlook
Patrick D. Hallinan, Executive
Vice President and CFO, commented, "We are creating strong momentum
with our cost reduction program, delivering $880 million in inventory reduction and
$675 million of pre-tax run-rate cost
savings year-to-date, both ahead of our initial plans. Our
consistent, diligent execution enabled us to increase our 2023
adjusted earnings per share* outlook and forms the foundation for
continued adjusted gross margin* improvements in 2024. The whole
organization is focused on sustaining the operational cost
efficiency needed to return our adjusted gross margins* to greater
than 35% to enable additional organic growth* investments. Along
with margin expansion, cash generation and balance sheet strength
remain top priorities as we continue positioning the Company for
long-term growth and value creation."
Management is revising its guidance ranges and expects 2023 GAAP
EPS to be in the range of ($1.45) to
($1.00) (From ($1.25) to ($0.50))
incorporating a third quarter $124
million pre-tax non-cash impairment charge related to the
Irwin and Troy-Bilt trade names. The Company is raising the
expected 2023 adjusted EPS* to be between $1.10 to $1.40, (Up
from $0.70 to $1.30). The Company is reiterating its target for
2023 free cash flow* generation to approximate $0.6 billion to $0.9
billion, significantly ahead of net income, due to ongoing
inventory reductions.
The difference between 2023 GAAP and adjusted EPS* guidance is
approximately $2.40 to $2.55, consisting of charges primarily due to the
supply chain transformation under the Global Cost Reduction
Program, non-cash asset impairment charges and integration-related
charges.
*Non-GAAP Financial
Measure As Further Defined On Page 6
|
Acquisition-Related and Other Charges
Total pre-tax acquisition-related and other charges in the third
quarter of 2023 were $191.0 million,
primarily related to a non-cash impairment charge, footprint
actions and other costs related to the supply chain transformation.
Gross profit included $32.2 million
of charges while SG&A included $29.4
million. Other, net included a net benefit of $5.5 million and Restructuring included
$10.9 million of charges. In
addition, the Company recognized a $124.0
million non-cash asset impairment charge in the third
quarter of 2023.
Earnings Webcast
Stanley Black & Decker will
host a webcast with investors today, October
27, 2023, at 8:00 am ET.
A slide presentation, which will accompany the call, will be
available on the "Investors" section of the Company's website at
www.stanleyblackanddecker.com/investors and will remain available
after the call.
The call will be available through a live, listen-only webcast
or teleconference. Links to access the webcast, register for
the teleconference, and view the accompanying slide presentation
will be available on the "Investors" section of the Company's
website, www.stanleyblackanddecker.com/investors under the
subheading "News & Events." A replay will also be
available two hours after the call and can be accessed on the
"Investors" section of Stanley Black
& Decker's website.
About Stanley Black &
Decker
Headquartered in the USA,
Stanley Black & Decker (NYSE:
SWK) is a global leader in tools and outdoor operating
manufacturing facilities worldwide. Guided by its purpose – for
those who make the world – the Company's more than 50,000 diverse
and high-performing employees produce innovative, award-winning
power tools, hand tools, storage, digital tool solutions, lifestyle
products, outdoor products, engineered fasteners and other
industrial equipment to support the world's makers, creators,
tradespeople and builders. The Company's iconic brands include
DEWALT®, BLACK+DECKER®, CRAFTSMAN®, STANLEY®, CUB CADET® and
HUSTLER®. Recognized for its leadership in environmental, social
and governance (ESG), Stanley Black
& Decker strives to be a force for good in support of its
communities, employees, customers and other stakeholders. To learn
more visit: www.stanleyblackanddecker.com.
Investor
Contacts:
|
|
Dennis Lange
|
Christina
Francis
|
Vice President,
Investor Relations
|
Director, Investor
Relations
|
dennis.lange@sbdinc.com
|
christina.francis@sbdinc.com
|
(860)
827-3833
|
(860)
438-3470
|
|
|
Media
Contacts:
|
|
Debora
Raymond
|
|
Vice President, Public
Relations
|
|
debora.raymond@sbdinc.com
|
|
(203)
640-8054
|
|
|
|
Non-GAAP Financial Measures
Organic revenue or organic sales is defined as the difference
between total current and prior year sales less the impact of
companies acquired and divested in the past twelve months and any
foreign currency impacts. Organic revenue growth, organic sales
growth or organic growth is organic revenue or organic sales
divided by prior year sales. Gross profit is defined as sales less
cost of sales. Gross margin is gross profit as a percentage of
sales. Operating profit is defined as sales less cost of sales and
selling, general and administrative expenses. Operating margin is
operating profit as a percentage of sales. Gross profit, gross
margin, SG&A, operating profit and operating margin are shown
both inclusive and exclusive of acquisition-related and other
charges. Management uses gross profit, gross margin, operating
profit and operating margin as key measures to assess the
performance of the Company as a whole, as well as the related
measures at the segment level. Adjusted earnings per share or
adjusted EPS, is diluted GAAP EPS excluding the impacts of
acquisition-related and other charges. 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 and is useful information for
investors. 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 Non-GAAP statement of operations and
business segment information is reconciled to GAAP on pages 12
through 15 and in the appendix to the earnings conference call
slides available at http://www.stanleyblackanddecker.com/investors.
The Company considers the use of the Non-GAAP financial measures
above relevant to aid analysis and understanding of the Company's
results, business trends and outlook measures aside from the
material impact of acquisition-related and other charges and
ensures appropriate comparability to operating results of prior
periods.
The Company also provides expectations for the non-GAAP
financial measures of adjusted EPS, presented on a basis excluding
acquisition-related and other charges, as well as free cash flow.
Forecasted adjusted EPS is reconciled to GAAP on page 5. Due to
high variability and difficulty in predicting items that impact
cash flow from operations, a reconciliation of forecasted free cash
flow to its most directly comparable GAAP estimate has been
omitted. The Company believes such a reconciliation would also
imply a degree of precision that is inappropriate for this
forward-looking measure.
CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995
This document contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements other than statements of historical fact are
"forward-looking statements" for purposes of federal and state
securities laws, including, but not limited to, any projections or
guidance of earnings, revenue or other financial items; any
statements of the plans, strategies and objectives of management
for future operations; any statements concerning proposed new
products, services or developments; any statements regarding future
economic conditions or performance; any statements of belief; and
any statements of assumptions underlying any of the foregoing.
Forward-looking statements may include, among others, the words
"may," "will," "estimate," "intend," "could," "project," "plan,"
"continue," "believe," "expect," "anticipate", "run-rate",
"annualized", "forecast", "commit", "goal", "target" or any other
similar words.
Although the Company believes that the expectations reflected in
any of its forward-looking statements are reasonable, actual
results could differ materially from those projected or assumed in
any of its forward-looking statements. The Company's future
financial condition and results of operations, as well as any
forward-looking statements, are subject to change and to inherent
risks and uncertainties, such as those disclosed or incorporated by
reference in the Company's filings with the Securities and Exchange
Commission.
Important factors that could cause the Company's actual results,
performance and achievements, or industry results to differ
materially from estimates or projections contained in its
forward-looking statements include, among others, the following:
(i) successfully developing, marketing and achieving sales from new
products and services and the continued acceptance of current
products and services; (ii) macroeconomic factors, including global
and regional business conditions, commodity prices, inflation and
deflation, interest rate volatility, currency exchange rates, and
uncertainties in the global financial markets related to the recent
failures of several financial institutions; (iii) laws, regulations
and governmental policies affecting the Company's activities in the
countries where it does business, including those related to
tariffs, taxation, data privacy, anti-bribery, anti-corruption,
government contracts and trade controls such as section 301 tariffs
and section 232 steel and aluminum tariffs; (iv) the economic,
political, cultural and legal environment in Europe and the emerging markets in which the
Company generates sales, particularly Latin America, China and Turkey; (v) realizing the anticipated benefits
of mergers, acquisitions, joint ventures, strategic alliances or
divestitures; (vi) pricing pressure and other changes within
competitive markets; (vii) availability and price of raw materials,
component parts, freight, energy, labor and sourced finished goods;
(viii) the impact that the tightened credit markets and any
discontinuation, reform or replacement of LIBOR and other benchmark
rates may have on the Company or its customers or suppliers; (ix)
the extent to which the Company has to write off accounts
receivable, inventory or other assets or experiences supply chain
disruptions in connection with bankruptcy filings by customers or
suppliers; (x) the Company's ability to identify and effectively
execute productivity improvements and cost reductions; (xi)
potential business and distribution disruptions, including those
related to physical security threats, information technology or
cyber-attacks, epidemics, pandemics, sanctions, political unrest,
war, including the Russia/Ukraine conflict, terrorism or natural
disasters, as well the continuing impact from the COVID-19
pandemic; (xii) the continued consolidation of customers,
particularly in consumer channels, and the Company's continued
reliance on significant customers; (xiii) managing franchisee
relationships; (xiv) the impact of poor weather conditions and
climate change and risks related to the transition to a
lower-carbon economy, such as the Company's ability to successfully
adopt new technology, meet market-driven demands for carbon neutral
and renewable energy technology, or to comply with more stringent
and increasingly complex environmental regulations or requirements
for its manufacturing facilities and business operations; (xv)
failure to meet environmental, social and governance (ESG)
expectations or standards, or achieve its ESG goals; (xvi)
maintaining or improving production rates in the Company's
manufacturing facilities, responding to significant changes in
customer preferences, product demand and fulfilling demand for new
and existing products, and learning, adapting and integrating new
technologies into products, services and processes; (xvii) changes
in the competitive landscape in the Company's markets; (xviii) the
Company's non-U.S. operations, including sales to non-U.S.
customers; (xix) the impact from demand changes within world-wide
markets associated with homebuilding and remodeling; (xx) potential
adverse developments in new or pending litigation and/or government
investigations; (xxi) the incurrence of debt and changes in the
Company's ability to obtain debt on commercially reasonable terms
and at competitive rates; (xxii) substantial pension and other
postretirement benefit obligations; (xxiii) potential regulatory
liabilities, including environmental, privacy, data breach, workers
compensation and product liabilities; (xxiv) attracting, developing
and retaining senior management and other key employees, managing a
workforce in many jurisdictions, labor shortages, work stoppages or
other labor disruptions; (xxv) the Company's ability to keep
abreast with the pace of technological change; (xxvi) changes in
accounting estimates; (xxvii) the Company's ability to protect its
intellectual property rights and to maintain its public reputation
and the strength of its brands; and (xxviii) the Company's ability
to implement, and achieve the expected benefits (including cost
savings and reduction in working capital) from, its Global Cost
Reduction Program including: continuing to advance innovation,
electrification and global market penetration to achieve organic
revenue growth of 2-3 times the market; streamlining and
simplifying the organization, and investing in initiatives that
more directly impact the Company's customers and end users;
returning adjusted gross margins to historical 35%+ levels by
accelerating the operations and supply chain transformation to
improve fill rates and better match inventory with customer demand;
prioritizing cash flow generation and inventory optimization;
leveraging strategic sourcing and contract manufacturing;
consolidating facilities and optimizing the distribution network;
executing the SBD Operating Model to deliver operational excellence
through efficiency, simplified organizational design and inventory
optimization; and platforming products and implementing initiatives
to drive a SKU reduction.
Additional factors that could cause actual results to differ
materially from forward-looking statements are set forth in the
Annual Report on Form 10-K and in the Quarterly Report on Form
10-Q, including under the heading "Risk Factors," "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and in the Condensed Consolidated Financial Statements
and the related Notes.
Forward-looking statements in this press release speak only as
of the date hereof, and forward-looking statements in documents
that are incorporated by reference herein speak only as of the date
of those documents. The Company does not undertake any obligation
or intention to update or revise any forward-looking statements,
whether as a result of future events or circumstances, new
information or otherwise, except as required by law.
STANLEY BLACK &
DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, Millions
of Dollars Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
$ 3,953.9
|
|
$
4,119.6
|
|
$
12,044.6
|
|
$ 12,960.6
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
2,893.3
|
|
3,101.5
|
|
9,216.4
|
|
9,430.0
|
|
|
Gross profit
|
|
1,060.6
|
|
1,018.1
|
|
2,828.2
|
|
3,530.6
|
|
|
% of Net
Sales
|
|
26.8 %
|
|
24.7 %
|
|
23.5 %
|
|
27.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
794.3
|
|
799.8
|
|
2,456.7
|
|
2,612.8
|
|
|
% of Net
Sales
|
|
20.1 %
|
|
19.4 %
|
|
20.4 %
|
|
20.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
266.3
|
|
218.3
|
|
371.5
|
|
917.8
|
|
|
% of Net
Sales
|
|
6.7 %
|
|
5.3 %
|
|
3.1 %
|
|
7.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other - net
|
|
94.0
|
|
69.1
|
|
224.3
|
|
210.2
|
|
|
Loss on sales of
businesses
|
|
-
|
|
8.6
|
|
7.6
|
|
8.4
|
|
|
Asset impairment
charges
|
|
124.0
|
|
-
|
|
124.0
|
|
168.4
|
|
|
Restructuring
charges
|
|
10.9
|
|
68.6
|
|
27.6
|
|
140.8
|
|
|
Income (loss) from
operations
|
|
37.4
|
|
72.0
|
|
(12.0)
|
|
390.0
|
|
|
Interest -
net
|
|
94.4
|
|
76.3
|
|
284.9
|
|
199.9
|
|
(LOSS) EARNINGS
FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(57.0)
|
|
(4.3)
|
|
(296.9)
|
|
190.1
|
|
|
Income taxes on
continuing operations
|
|
(61.7)
|
|
(40.9)
|
|
(291.3)
|
|
(80.8)
|
|
NET EARNINGS
(LOSS) FROM CONTINUING OPERATIONS
|
4.7
|
|
36.6
|
|
(5.6)
|
|
270.9
|
|
|
Less: Net earnings
attributable to non-controlling interests
|
-
|
|
-
|
|
-
|
|
0.2
|
|
NET EARNINGS
(LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON
SHAREOWNERS
|
$
4.7
|
|
$
36.6
|
|
$
(5.6)
|
|
$
270.7
|
|
|
Add: Contract
adjustment payments accretion
|
|
-
|
|
0.3
|
|
-
|
|
1.0
|
|
NET EARNINGS
(LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON
SHAREOWNERS - DILUTED
|
$
4.7
|
|
$
36.9
|
|
$
(5.6)
|
|
$
271.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
discontinued operations before income taxes (including 2023 pre-tax
loss on Security sale of $0.8 million and 2022
pre-tax gain on Security sale of $1,220.0 million)
|
-
|
|
1,204.9
|
|
(0.8)
|
|
1,233.5
|
|
|
Income taxes on
discontinued operations (including 2023 income taxes of $0.3
million for loss on Security sale and 2022 income taxes of
$390.7 million for gain on Security sale)
|
-
|
|
396.9
|
|
(0.3)
|
|
396.7
|
|
NET EARNINGS
(LOSS) FROM DISCONTINUED OPERATIONS
|
$
-
|
|
$
808.0
|
|
$
(0.5)
|
|
$
836.8
|
|
NET EARNINGS
(LOSS) ATTRIBUTABLE TO COMMON SHAREOWNERS -
DILUTED
|
$
4.7
|
|
$
844.9
|
|
$
(6.1)
|
|
$
1,108.5
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
(LOSS) ATTRIBUTABLE TO STANLEY BLACK & DECKER,
INC.
|
$
4.7
|
|
$
844.6
|
|
$
(6.1)
|
|
$
1,107.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS
(LOSS) PER SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
0.03
|
|
$
0.25
|
|
$
(0.04)
|
|
$
1.82
|
|
|
Discontinued
operations
|
|
$
-
|
|
$
5.60
|
|
$
-
|
|
$
5.64
|
|
|
Total basic earnings (loss)
per share of common stock
|
$
0.03
|
|
$
5.85
|
|
$
(0.04)
|
|
$
7.46
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
(LOSS) PER SHARE OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
0.03
|
|
$
0.24
|
|
$
(0.04)
|
|
$
1.72
|
|
|
Discontinued
operations
|
|
$
-
|
|
$
5.26
|
|
$
-
|
|
$
5.30
|
|
|
Total diluted earnings
(loss) per share of common stock
|
$
0.03
|
|
$
5.50
|
|
$
(0.04)
|
|
$
7.02
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS PER
SHARE OF COMMON STOCK
|
|
$
0.81
|
|
$
0.80
|
|
$
2.41
|
|
$
2.38
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE
SHARES OUTSTANDING (in thousands)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
149,799
|
|
144,379
|
|
149,687
|
|
148,384
|
|
|
Diluted
|
|
150,545
|
|
153,600
|
|
149,687
|
|
157,966
|
STANLEY BLACK &
DECKER, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
347.8
|
|
$
395.6
|
|
Accounts and notes
receivable, net
|
|
1,623.3
|
|
1,231.0
|
|
Inventories,
net
|
|
4,977.7
|
|
5,861.1
|
|
Other current
assets
|
|
430.3
|
|
487.0
|
|
Total current assets
|
|
7,379.1
|
|
7,974.7
|
|
Property, plant and
equipment, net
|
|
2,200.7
|
|
2,353.1
|
|
Goodwill and other
intangibles, net
|
|
12,669.1
|
|
12,977.5
|
|
Other assets
|
|
1,848.2
|
|
1,658.0
|
|
Total assets
|
|
$
24,097.1
|
|
$
24,963.3
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREOWNERS' EQUITY
|
|
|
|
|
Short-term
borrowings
|
|
$
1,500.2
|
|
$
2,102.9
|
|
Current maturities of
long-term debt
|
|
1.1
|
|
1.2
|
|
Accounts
payable
|
|
2,252.6
|
|
2,344.4
|
|
Accrued
expenses
|
|
1,909.4
|
|
2,120.7
|
|
Total current liabilities
|
|
5,663.3
|
|
6,569.2
|
|
Long-term
debt
|
|
6,099.2
|
|
5,352.9
|
|
Other long-term
liabilities
|
|
3,005.2
|
|
3,327.0
|
|
Stanley Black &
Decker, Inc. shareowners' equity
|
9,327.3
|
|
9,712.1
|
|
Non-controlling
interests' equity
|
|
2.1
|
|
2.1
|
|
Total liabilities and shareowners' equity
|
$
24,097.1
|
|
$
24,963.3
|
STANLEY BLACK
& DECKER, INC. AND SUBSIDIARIES
|
SUMMARY OF CASH FLOW
ACTIVITY
|
(Unaudited,
Millions of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations
|
|
|
$
4.7
|
|
$
36.6
|
|
$
(5.6)
|
|
$
270.9
|
|
|
Net earnings (loss)
from discontinued operations
|
|
|
-
|
|
808.0
|
|
(0.5)
|
|
836.8
|
|
|
Depreciation and
amortization
|
|
|
151.1
|
|
138.0
|
|
476.7
|
|
425.1
|
|
|
Loss on sales of
businesses
|
|
|
-
|
|
8.6
|
|
7.6
|
|
8.4
|
|
|
(Gain) loss on sale of
discontinued operations
|
|
|
-
|
|
(1,220.0)
|
|
0.8
|
|
(1,220.0)
|
|
|
Asset impairment
charges
|
|
|
124.0
|
|
-
|
|
124.0
|
|
168.4
|
|
|
Changes in working
capital1
|
|
|
155.6
|
|
(393.3)
|
|
253.3
|
|
(2,297.4)
|
|
|
Other
|
|
|
|
8.5
|
|
196.5
|
|
(434.3)
|
|
(302.8)
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
443.9
|
|
(425.6)
|
|
422.0
|
|
(2,110.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING AND
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Capital and software
expenditures
|
|
|
(79.9)
|
|
(114.4)
|
|
(216.4)
|
|
(399.9)
|
|
|
Proceeds from sales of
businesses, net of cash sold
|
|
|
-
|
|
4,146.9
|
|
(5.7)
|
|
4,147.1
|
|
|
Business acquisitions,
net of cash acquired
|
|
|
-
|
|
(26.5)
|
|
-
|
|
(72.1)
|
|
|
Proceeds from debt
issuances, net of fees
|
|
|
(0.6)
|
|
-
|
|
745.3
|
|
992.6
|
|
|
Stock purchase contract
fees
|
|
|
-
|
|
(9.9)
|
|
-
|
|
(29.5)
|
|
|
Credit facility
borrowings
|
|
|
-
|
|
-
|
|
-
|
|
2,500.0
|
|
|
Credit facility
repayments
|
|
|
-
|
|
(2,500.0)
|
|
-
|
|
(2,500.0)
|
|
|
Net short-term
commercial paper (repayments) borrowings
|
|
|
(266.4)
|
|
(763.4)
|
|
(594.3)
|
|
328.0
|
|
|
Proceeds from issuances
of common stock
|
|
|
4.4
|
|
3.4
|
|
11.5
|
|
23.0
|
|
|
Purchases of common
stock for treasury
|
|
|
(1.2)
|
|
(4.6)
|
|
(6.8)
|
|
(2,318.7)
|
|
|
Craftsman contingent
consideration
|
|
|
-
|
|
(11.4)
|
|
(18.0)
|
|
(32.5)
|
|
|
Termination of interest
rate swaps
|
|
|
-
|
|
-
|
|
-
|
|
22.7
|
|
|
Cash dividends on
common stock
|
|
|
(121.3)
|
|
(115.5)
|
|
(360.8)
|
|
(345.8)
|
|
|
Effect of exchange rate
changes on cash
|
|
|
(23.6)
|
|
(78.2)
|
|
(28.7)
|
|
(95.8)
|
|
|
Other
|
|
|
|
0.9
|
|
5.7
|
|
(0.9)
|
|
11.3
|
|
|
Net cash (used in)
provided by investing and financing activities
|
|
|
(487.7)
|
|
532.1
|
|
(474.8)
|
|
2,230.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease) increase
in cash, cash equivalents and restricted cash
|
|
|
(43.8)
|
|
106.5
|
|
(52.8)
|
|
119.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
|
395.9
|
|
308.1
|
|
404.9
|
|
294.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
|
$
352.1
|
|
$
414.6
|
|
$
352.1
|
|
$
414.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Computation2
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
$
443.9
|
|
$
(425.6)
|
|
$
422.0
|
|
$
(2,110.6)
|
|
Less: capital and
software expenditures
|
|
|
(79.9)
|
|
(114.4)
|
|
(216.4)
|
|
(399.9)
|
|
Free cash flow (before
dividends)
|
|
|
$
364.0
|
|
$
(540.0)
|
|
$
205.6
|
|
$
(2,510.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash, Cash Equivalents and
Restricted Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
347.8
|
|
$
395.6
|
|
|
|
|
|
Restricted cash
included in Other current assets
|
|
|
4.3
|
|
9.3
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
|
$
352.1
|
|
$
404.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, and is useful information for
investors. 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.
|
STANLEY BLACK &
DECKER, INC. AND SUBSIDIARIES
|
BUSINESS SEGMENT
INFORMATION
|
(Unaudited, Millions
of Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD
QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
3,355.3
|
|
$
3,494.7
|
|
$
10,212.9
|
|
$
11,040.8
|
|
Industrial
|
|
598.6
|
|
624.8
|
|
1,831.7
|
|
1,919.5
|
|
Segment Net
Sales
|
|
3,953.9
|
|
4,119.5
|
|
12,044.6
|
|
12,960.3
|
|
Corporate
Overhead
|
|
-
|
|
0.1
|
|
-
|
|
0.3
|
|
Total
|
|
$
3,953.9
|
|
$
4,119.6
|
|
$
12,044.6
|
|
$
12,960.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
273.4
|
|
$
228.4
|
|
$
394.1
|
|
$
968.5
|
|
Industrial
|
|
62.5
|
|
68.4
|
|
201.5
|
|
168.0
|
|
Segment
Profit
|
|
335.9
|
|
296.8
|
|
595.6
|
|
1,136.5
|
|
Corporate
Overhead
|
|
(69.6)
|
|
(78.5)
|
|
(224.1)
|
|
(218.7)
|
|
Total
|
|
$
266.3
|
|
$
218.3
|
|
$
371.5
|
|
$
917.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as
a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
8.1 %
|
|
6.5 %
|
|
3.9 %
|
|
8.8 %
|
|
Industrial
|
|
10.4 %
|
|
10.9 %
|
|
11.0 %
|
|
8.8 %
|
|
Segment
Profit
|
|
8.5 %
|
|
7.2 %
|
|
4.9 %
|
|
8.8 %
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER
2023
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges &
Other1
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
1,060.6
|
|
$
32.2
|
|
$
1,092.8
|
|
|
% of Net
Sales
|
|
26.8 %
|
|
|
|
27.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
794.3
|
|
(29.4)
|
|
764.9
|
|
|
% of Net
Sales
|
|
20.1 %
|
|
|
|
19.3 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
266.3
|
|
61.6
|
|
327.9
|
|
|
% of Net
Sales
|
|
6.7 %
|
|
|
|
8.3 %
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings from
continuing operations before income taxes
|
(57.0)
|
|
191.0
|
|
134.0
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on
continuing operations
|
|
(61.7)
|
|
37.5
|
|
(24.2)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations attributable to common shareowners -
Diluted
|
4.7
|
|
153.5
|
|
158.2
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock - Continuing operations
|
$
0.03
|
|
$
1.02
|
|
$
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relate primarily to a non-cash impairment charge
related to the Irwin and Troy-Bilt trade names, footprint actions
and
other costs associated with the supply chain transformation, and
restructuring.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER
2022
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges &
Other2
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
1,018.1
|
|
$
(2.5)
|
|
$
1,015.6
|
|
|
% of Net
Sales
|
|
24.7 %
|
|
|
|
24.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
799.8
|
|
(41.3)
|
|
758.5
|
|
|
% of Net
Sales
|
|
19.4 %
|
|
|
|
18.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
218.3
|
|
38.8
|
|
257.1
|
|
|
% of Net
Sales
|
|
5.3 %
|
|
|
|
6.2 %
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings from
continuing operations before income taxes
|
(4.3)
|
|
118.7
|
|
114.4
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on
continuing operations
|
|
(40.9)
|
|
39.4
|
|
(1.5)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations attributable to common shareowners -
Diluted
|
36.9
|
|
79.3
|
|
116.2
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock - Continuing operations
|
$
0.24
|
|
$
0.52
|
|
$
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relate primarily to restructuring and
integration-related costs.
|
|
3
|
The non-GAAP 2023 and
2022 information, as reconciled to GAAP above, is considered
relevant to aid analysis and understanding of the Company's
results,
business trends and outlook measures aside from the material impact
of acquisition-related and other charges and ensures appropriate
comparability to
operating results of prior periods.
|
|
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
2023
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges &
Other1
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
2,828.2
|
|
$
157.0
|
|
$
2,985.2
|
|
|
% of Net
Sales
|
|
23.5 %
|
|
|
|
24.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
2,456.7
|
|
(75.5)
|
|
2,381.2
|
|
|
% of Net
Sales
|
|
20.4 %
|
|
|
|
19.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
371.5
|
|
232.5
|
|
604.0
|
|
|
% of Net
Sales
|
|
3.1 %
|
|
|
|
5.0 %
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings from
continuing operations before income taxes
|
(296.9)
|
|
368.9
|
|
72.0
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on
continuing operations
|
|
(291.3)
|
|
282.6
|
|
(8.7)
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) earnings
from continuing operations attributable to common shareowners -
Diluted
|
(5.6)
|
|
86.3
|
|
80.7
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings
per share of common stock - Continuing operations
|
$
(0.04)
|
|
$
0.58
|
|
$
0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relate primarily to a non-cash impairment charge
related to the Irwin and Troy-Bilt trade names, footprint actions
and other
costs associated with the supply chain transformation,
restructuring and integration-related costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2022
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges &
Other2
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
3,530.6
|
|
$
102.9
|
|
$
3,633.5
|
|
|
% of Net
Sales
|
|
27.2 %
|
|
|
|
28.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
2,612.8
|
|
(153.1)
|
|
2,459.7
|
|
|
% of Net
Sales
|
|
20.2 %
|
|
|
|
19.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
917.8
|
|
256.0
|
|
1,173.8
|
|
|
% of Net
Sales
|
|
7.1 %
|
|
|
|
9.1 %
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
190.1
|
|
588.2
|
|
778.3
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on
continuing operations
|
|
(80.8)
|
|
121.7
|
|
40.9
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations attributable to common shareowners -
Diluted
|
271.7
|
|
466.5
|
|
738.2
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock - Continuing operations
|
$
1.72
|
|
$
2.95
|
|
$
4.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relate primarily to a non-cash asset impairment
charge related to the Oil & Gas business, restructuring,
integration-related
costs, non-cash inventory step-up charges, a voluntary retirement
program and the Russia business closure.
|
|
3
|
The non-GAAP 2023 and
2022 information, as reconciled to GAAP above, is considered
relevant to aid analysis and understanding of the Company's
results,
business trends and outlook measures aside from the material impact
of acquisition-related and other charges and ensures appropriate
comparability to
operating results of prior periods.
|
|
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
2023
|
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges and
Other1
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
273.4
|
|
$
39.4
|
|
$
312.8
|
|
|
|
Industrial
|
|
62.5
|
|
10.5
|
|
73.0
|
|
|
|
Segment
Profit
|
|
335.9
|
|
49.9
|
|
385.8
|
|
|
|
Corporate
Overhead
|
|
(69.6)
|
|
11.7
|
|
(57.9)
|
|
|
|
Total
|
|
$
266.3
|
|
$
61.6
|
|
$
327.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as
a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
8.1 %
|
|
|
|
9.3 %
|
|
|
|
Industrial
|
|
10.4 %
|
|
|
|
12.2 %
|
|
|
|
Segment
Profit
|
|
8.5 %
|
|
|
|
9.8 %
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relate primarily to footprint actions and other
costs associated with the
supply chain transformation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THIRD QUARTER
2022
|
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges and
Other2
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
228.4
|
|
$
10.6
|
|
$
239.0
|
|
|
|
Industrial
|
|
68.4
|
|
1.0
|
|
69.4
|
|
|
|
Segment
Profit
|
|
296.8
|
|
11.6
|
|
308.4
|
|
|
|
Corporate
Overhead
|
|
(78.5)
|
|
27.2
|
|
(51.3)
|
|
|
|
Total
|
|
$
218.3
|
|
$
38.8
|
|
$
257.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as
a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
6.5 %
|
|
|
|
6.8 %
|
|
|
|
Industrial
|
|
10.9 %
|
|
|
|
11.1 %
|
|
|
|
Segment
Profit
|
|
7.2 %
|
|
|
|
7.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relate primarily to integration-related
costs.
|
|
3
|
The non-GAAP 2023 and
2022 business segment information, as reconciled to GAAP above, is
considered
relevant to aid analysis and understanding of the Company's
results, business trends and outlook measures aside
from the material impact of acquisition-related and other charges
and ensures appropriate comparability to
operating results of prior periods.
|
|
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
2023
|
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges and
Other1
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
394.1
|
|
$
174.4
|
|
$
568.5
|
|
|
|
Industrial
|
|
201.5
|
|
19.3
|
|
220.8
|
|
|
|
Segment
Profit
|
|
595.6
|
|
193.7
|
|
789.3
|
|
|
|
Corporate
Overhead
|
|
(224.1)
|
|
38.8
|
|
(185.3)
|
|
|
|
Total
|
|
$
371.5
|
|
$
232.5
|
|
$
604.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as
a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
3.9 %
|
|
|
|
5.6 %
|
|
|
|
Industrial
|
|
11.0 %
|
|
|
|
12.1 %
|
|
|
|
Segment
Profit
|
|
4.9 %
|
|
|
|
6.6 %
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relate primarily to footprint actions and other
costs associated with the supply
chain transformation and integration-related costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
2022
|
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges and
Other2
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
SEGMENT
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
968.5
|
|
$
205.6
|
|
$
1,174.1
|
|
|
|
Industrial
|
|
168.0
|
|
6.4
|
|
174.4
|
|
|
|
Segment
Profit
|
|
1,136.5
|
|
212.0
|
|
1,348.5
|
|
|
|
Corporate
Overhead
|
|
(218.7)
|
|
44.0
|
|
(174.7)
|
|
|
|
Total
|
|
$
917.8
|
|
$
256.0
|
|
$
1,173.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as
a Percentage of Net Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
8.8 %
|
|
|
|
10.6 %
|
|
|
|
Industrial
|
|
8.8 %
|
|
|
|
9.1 %
|
|
|
|
Segment
Profit
|
|
8.8 %
|
|
|
|
10.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relate primarily to integration-related costs,
non-cash inventory step-up
charges, a voluntary retirement program and the Russia business
closure.
|
|
3
|
The non-GAAP 2023 and
2022 business segment information, as reconciled to GAAP above, is
considered relevant
to aid analysis and understanding of the Company's results,
business trends and outlook measures aside from the
material impact of acquisition-related and other charges and
ensures appropriate comparability to operating results
of prior periods.
|
|
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SOURCE Stanley Black &
Decker