Global Cost Reduction Program Delivered
$230 Million of Pre-Tax Run-Rate
Savings in Second Quarter 2023; On-Track for Expected $1 Billion Run-Rate Savings by End of
2023
Delivered Second Consecutive Quarter of
Sequential Gross Margin Improvement
Strong Progress on Inventory Reduction, With
Incremental $375 Million Reduction in
Second Quarter 2023; Approximately $1.4
Billion Inventory Reduction Since Mid-2022
NEW
BRITAIN, Conn., Aug. 1, 2023
/PRNewswire/ -- Stanley Black &
Decker (NYSE: SWK), a worldwide leader in tools and outdoor,
today announced second quarter 2023 financial results.
- Second Quarter Revenues of $4.2
Billion, Down Versus Prior Year Due to Lower Consumer
Outdoor and DIY Volume as well as the Oil & Gas Business
Divestiture
- Second Quarter Diluted GAAP EPS Was $1.18; Excluding Charges and Timing of Certain
Tax Benefits, Second Quarter Adjusted Diluted EPS* Was ($0.11), as the Company Continues Prioritizing
Inventory Reduction and Cash Generation
- Free Cash Flow* in the Second Quarter was Approximately
$200 Million Primarily Driven by
Inventory Reduction
- Narrowing 2023 Guidance Ranges With Full Year Diluted GAAP EPS
of ($1.25) to ($0.50) (From ($1.65) to $0.60),
Adjusted Diluted EPS* of $0.70 to
$1.30 (From $0.00 to $2.00) and
Free Cash Flow* to Approximate $0.6
Billion to $0.9 Billion (From
$0.5 Billion to $1.0 Billion)
Donald Allan, Jr., Stanley Black & Decker's President &
CEO, commented, "We continued to make significant progress against
our strategic business transformation in the second quarter
highlighted by strong execution against our cost savings program,
continued inventory reduction, sequential gross margin improvement
and numerous advances in our supply chain optimization initiative.
While the operating backdrop remains dynamic with some underlying
consumer softness, we continue to see strong demand in the
professional construction, automotive and aerospace markets as well
as further stabilization across global supply chains.
"As we've transformed Stanley
Black & Decker into a more streamlined business, we are
operating with more focus and core market leadership positions in
Tools & Outdoor and Industrial, built on the strength of our
people and culture. The compelling long-term opportunities in the
markets we serve along with the progress we've made transforming
our business, including our improved cost position, gives us the
confidence to pursue growth investments in the second half of this
year. We believe these investments will help capture the market
opportunity and accelerate our growth and margin expansion. We are
proud of our progress to date, and I am confident that by executing
our strategy we are positioning Stanley
Black & Decker for strong long-term growth, cash flow
generation, profitability, and shareholder return."
*Non-GAAP Financial
Measure As Further Defined On Page 6
|
The Company's primary areas of strategic focus are:
- 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
2Q'23 Key Points:
- Net sales for the quarter were $4.2
billion, down 5% versus prior year as price realization
(+1%) was more than offset by lower volume (-5%) and the Oil &
Gas divestiture (-1%).
- Inventory at the end of the quarter was $5.3 billion, down approximately $375 million from the prior quarter and
$1.4 billion over the last twelve
months as the Company continued benefiting from improving supply
chain conditions and planned production curtailments.
- Gross margin for the quarter was 22.4%. Adjusted gross margin*
was 23.6%, up 50 basis points sequentially from first quarter 2023.
Adjusted gross margin* was down versus the prior year rate of 27.9%
as price realization was more than offset by a 4 to 5 point impact
from production curtailments, selling through high-cost inventory
and lower volumes.
- SG&A expenses were 20.1% of sales for the quarter.
Excluding charges, second quarter adjusted SG&A expenses* were
$812 million or 19.5% of sales.
Adjusted SG&A expenses* were down on an absolute basis versus
the prior year reflecting cost control actions but up versus the
prior year rate of 18.7% due to lower sales.
2Q'23 Segment Results
($ in M)
|
|
|
Sales
|
Profit
|
Charges1
|
Profit Ex-
Charges*
|
Profit Rate
|
Profit Rate
Ex-
Charges*
|
Tools &
Outdoor
|
$3,542
|
$102.0
|
$55.8
|
$157.8
|
2.9 %
|
4.5 %
|
|
|
|
|
|
|
|
Industrial
|
$617
|
$71.6
|
$8.5
|
$80.1
|
11.6 %
|
13.0 %
|
|
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 5% versus second
quarter 2022 as price realization (+1%) was more than offset by
volume (-6%). The overall organic* decline (-5%) was a result of
lower consumer outdoor and DIY market demand and modestly reduced
channel inventory. Regional year-over-year organic* revenue
included: North America (-6%),
Europe (-1%) and Emerging markets
(-3%). Second quarter U.S. retail point-of-sale demand was above
pre-pandemic 2019 levels, supported by strength in professional
demand and price. The Tools & Outdoor segment profit rate*,
excluding charges, was 4.5%. The segment profit rate*, excluding
charges, declined from 10.8% in second quarter 2022 as price
realization was more than offset by selling through high-cost
inventory, production curtailment costs and lower volume.
- Industrial net sales were down 5% versus second quarter 2022 as
price (+4%) was more than offset by volume (-1%), currency (-1%)
and the Oil & Gas divestiture (-7%). Engineered Fastening
organic* revenues were up 8%, with double digit growth in aerospace
and automotive, which was partially offset by softer industrial
markets. Attachment Tools organic* revenues were down 14% due to
customer destocking. The Industrial segment profit rate*, excluding
charges, was 13.0%, up 370 basis points versus prior year, due to
price realization and cost control.
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 remain on track to generate
run-rate cost savings of approximately $1
billion by the end of 2023, growing to approximately
$2 billion by 2025.
Year-to-date, the Company is ahead of plan and achieved
$460 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 $575 million versus
fourth quarter 2022 ending balances and is on track to deliver
$700 million to $900 million of inventory reductions in 2023 to
support free cash flow generation. Since inception, the Global Cost
Reduction Program generated $660
million in pre-tax run-rate savings and the Company has
reduced inventory by $1.4
billion.
*Non-GAAP Financial
Measure As Further Defined On Page 6
|
2023 Outlook
Patrick D. Hallinan, Executive
Vice President and CFO, commented, "In the first half, we reduced
inventory by $575 million and
generated $460 million of pre-tax run
rate cost savings, both modestly ahead of our plan. The progress
we've made sets the business up for continued gross margin
improvement in the second half of 2023. Looking forward, as
we continue to plan around a range of 2023 demand outcomes, we are
executing our transformation to deliver the cost savings that are
largely within our control and create flexibility to fund growth
investments. Cash generation, gross margin improvement and balance
sheet strength remain our top priorities as we continue positioning
the Company for long-term growth and value creation."
Management is narrowing its guidance ranges and expects 2023
GAAP EPS to be in the range of ($1.25) to ($0.50)
(From ($1.65) to $0.60). Adjusted EPS* is expected to be
between $0.70 to $1.30, (From $0.00
to $2.00). Free cash flow* is
expected to be approximately $0.6
billion to $0.9 billion (from
$0.5 billion to $1.0 billion), significantly ahead of net income,
as the Company focuses on serving its customers and executing its
transformation while leveraging the SBD Operating Model to drive
working capital efficiency. The Company continues to prioritize
free cash flow generation and intends to make investments to
support faster organic growth. Management's guidance reflects a
range of demand for the balance of 2023, that will be discussed in
more detail on today's earnings call.
The difference between 2023 GAAP and adjusted EPS* guidance is
approximately $1.80 to $1.95, consisting of other charges primarily due
to the supply chain transformation under the Global Cost Reduction
Program 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
second quarter of 2023 were $71.1
million, primarily related to footprint actions and other
costs related to the supply chain transformation. Gross profit
included $51.4 million of these
charges while SG&A included $25.4
million. Other, net included a net benefit of $10.3 million and Restructuring included
$4.6 million of charges.
Earnings Webcast
The Company will host a webcast with investors today,
August 1, 2023, at 8:00 am ET. A slide presentation, which
will accompany the call, will be available on the "Investors"
section of Stanley Black &
Decker'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 Stanley Black & Decker'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 worldwide 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®,
HUSTLER® and TROY-BILT®. 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
Vice President, Investor Relations
dennis.lange@sbdinc.com
(860) 827-3833
Cort Kaufman
Senior Director, Investor Relations
cort.kaufman@sbdinc.com
(860) 515-2741
Christina Francis
Director, Investor Relations
christina.francis@sbdinc.com
(860) 438-3470
Media Contacts:
Debora
Raymond
Vice President, Public Relations
debora.raymond@sbdinc.com
(203) 640-8054
Non-GAAP Financial Measures
Organic sales growth, or
organic growth, 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
divided by prior year 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. Operating profit and operating margin are shown both
inclusive and exclusive of acquisition-related and other charges.
Management uses 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. Diluted EPS,
excluding charges, 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 and
preferred 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 4. 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" 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, Russia, China
and Turkey; (v) realizing the
anticipated benefits of mergers, acquisitions, joint ventures,
strategic alliances or divestitures, including the divestitures of
the Security and Oil & Gas businesses; (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 our 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, as well as shifting resources to
prioritize investments believed to have a positive and more direct
impact to customers; accelerating the operations and supply chain
transformation to improve fill rates and better match the needs of
its customers while improving adjusted gross margins back to
historical 35%+ levels; 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
$ 4,158.9
|
|
$
4,393.0
|
|
$ 8,090.7
|
|
$
8,841.0
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
3,226.8
|
|
3,185.9
|
|
6,323.1
|
|
6,328.5
|
|
|
Gross
profit
|
|
932.1
|
|
1,207.1
|
|
1,767.6
|
|
2,512.5
|
|
|
% of Net Sales
|
|
22.4 %
|
|
27.5 %
|
|
21.8 %
|
|
28.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
837.3
|
|
852.7
|
|
1,662.4
|
|
1,813.0
|
|
|
% of Net Sales
|
|
20.1 %
|
|
19.4 %
|
|
20.5 %
|
|
20.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
94.8
|
|
354.4
|
|
105.2
|
|
699.5
|
|
|
% of Net Sales
|
|
2.3 %
|
|
8.1 %
|
|
1.3 %
|
|
7.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other - net
|
|
66.6
|
|
79.1
|
|
130.3
|
|
141.1
|
|
|
(Gain) loss on sales of
businesses
|
|
-
|
|
(0.2)
|
|
7.6
|
|
(0.2)
|
|
|
Asset impairment
charge
|
|
-
|
|
168.4
|
|
-
|
|
168.4
|
|
|
Restructuring
charges
|
|
4.6
|
|
19.5
|
|
16.7
|
|
72.2
|
|
|
Income (loss) from operations
|
|
23.6
|
|
87.6
|
|
(49.4)
|
|
318.0
|
|
|
Interest -
net
|
|
99.4
|
|
71.7
|
|
190.5
|
|
123.6
|
|
(LOSS) EARNINGS FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES
|
(75.8)
|
|
15.9
|
|
(239.9)
|
|
194.4
|
|
|
Income taxes on
continuing operations
|
|
(253.3)
|
|
(62.8)
|
|
(229.6)
|
|
(39.9)
|
|
NET EARNINGS (LOSS) FROM CONTINUING
OPERATIONS
|
177.5
|
|
78.7
|
|
(10.3)
|
|
234.3
|
|
|
Less: Net earnings
attributable to non-controlling interests
|
-
|
|
0.1
|
|
-
|
|
0.2
|
|
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS
ATTRIBUTABLE TO COMMON
SHAREOWNERS
|
$
177.5
|
|
$
78.6
|
|
$
(10.3)
|
|
$
234.1
|
|
|
Add: Contract
adjustment payments accretion
|
|
-
|
|
0.4
|
|
-
|
|
0.7
|
|
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS
ATTRIBUTABLE TO COMMON
SHAREOWNERS - DILUTED
|
$
177.5
|
|
$
79.0
|
|
$
(10.3)
|
|
$
234.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings from
discontinued operations before income taxes (including 2023 pre-tax
loss on
Security sale of $0.8 million)
|
(0.8)
|
|
6.4
|
|
(0.8)
|
|
28.6
|
|
|
Income taxes on
discontinued operations
|
(0.3)
|
|
(2.6)
|
|
(0.3)
|
|
(0.2)
|
|
NET (LOSS) EARNINGS FROM DISCONTINUED
OPERATIONS
|
$
(0.5)
|
|
$
9.0
|
|
$
(0.5)
|
|
$
28.8
|
|
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON
SHAREOWNERS - DILUTED
|
$
177.0
|
|
$
88.0
|
|
$
(10.8)
|
|
$
263.6
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS (LOSS) ATTRIBUTABLE TO STANLEY BLACK
& DECKER, INC.
|
$
177.0
|
|
$
87.6
|
|
$
(10.8)
|
|
$
262.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS (LOSS) PER SHARE OF COMMON
STOCK
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
1.19
|
|
$
0.54
|
|
$
(0.07)
|
|
$
1.56
|
|
|
Discontinued
operations
|
|
$
-
|
|
$
0.06
|
|
$
-
|
|
$
0.19
|
|
|
Total basic earnings (loss)
per share of common stock
|
$
1.18
|
|
$
0.60
|
|
$
(0.07)
|
|
$
1.75
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS (LOSS) PER SHARE OF COMMON
STOCK
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
1.18
|
|
$
0.51
|
|
$
(0.07)
|
|
$
1.47
|
|
|
Discontinued
operations
|
|
$
-
|
|
$
0.06
|
|
$
-
|
|
$
0.18
|
|
|
Total diluted earnings
(loss) per share of common stock
|
$
1.18
|
|
$
0.57
|
|
$
(0.07)
|
|
$
1.65
|
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS PER SHARE OF COMMON
STOCK
|
|
$
0.80
|
|
$
0.79
|
|
$
1.60
|
|
$
1.58
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE SHARES OUTSTANDING (in
thousands)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
149,687
|
|
145,353
|
|
149,631
|
|
150,385
|
|
|
Diluted
|
|
150,227
|
|
154,814
|
|
149,631
|
|
160,127
|
STANLEY BLACK & DECKER, INC. AND
SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(Unaudited, Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
July 1,
|
|
December 31,
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
391.4
|
|
$
395.6
|
|
Accounts and notes
receivable, net
|
|
1,706.7
|
|
1,231.0
|
|
Inventories,
net
|
|
5,282.9
|
|
5,861.1
|
|
Other current
assets
|
|
458.7
|
|
487.0
|
|
Total current assets
|
|
7,839.7
|
|
7,974.7
|
|
Property, plant and
equipment, net
|
|
2,245.7
|
|
2,353.1
|
|
Goodwill and other
intangibles, net
|
|
12,890.3
|
|
12,977.5
|
|
Other assets
|
|
1,957.5
|
|
1,658.0
|
|
Total assets
|
|
$
24,933.2
|
|
$
24,963.3
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREOWNERS'
EQUITY
|
|
|
|
|
Short-term
borrowings
|
|
$
1,784.0
|
|
$
2,102.9
|
|
Current maturities of
long-term debt
|
|
1.1
|
|
1.2
|
|
Accounts
payable
|
|
2,413.9
|
|
2,344.4
|
|
Accrued
expenses
|
|
1,940.6
|
|
2,120.7
|
|
Total current liabilities
|
|
6,139.6
|
|
6,569.2
|
|
Long-term
debt
|
|
6,099.9
|
|
5,352.9
|
|
Other long-term
liabilities
|
|
3,157.8
|
|
3,327.0
|
|
Stanley Black &
Decker, Inc. shareowners' equity
|
9,533.8
|
|
9,712.1
|
|
Non-controlling
interests' equity
|
|
2.1
|
|
2.1
|
|
Total liabilities and shareowners' equity
|
$
24,933.2
|
|
$
24,963.3
|
STANLEY BLACK & DECKER, INC. AND
SUBSIDIARIES
|
SUMMARY OF CASH FLOW ACTIVITY
|
(Unaudited, Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations
|
|
|
$
177.5
|
|
$
78.7
|
|
$
(10.3)
|
|
$
234.3
|
|
|
Net (loss) earnings
from discontinued operations
|
|
|
(0.5)
|
|
9.0
|
|
(0.5)
|
|
28.8
|
|
|
Depreciation and
amortization
|
|
|
164.4
|
|
143.4
|
|
325.6
|
|
287.1
|
|
|
(Gain) loss on sales of
businesses
|
|
|
-
|
|
(0.2)
|
|
7.6
|
|
(0.2)
|
|
|
Loss on sale of
discontinued operations
|
|
|
0.8
|
|
-
|
|
0.8
|
|
-
|
|
|
Asset impairment
charge
|
|
|
-
|
|
168.4
|
|
-
|
|
168.4
|
|
|
Changes in working
capital1
|
|
|
278.9
|
|
(568.0)
|
|
97.7
|
|
(1,904.1)
|
|
|
Other
|
|
|
|
(356.7)
|
|
(275.2)
|
|
(442.8)
|
|
(499.3)
|
|
|
Net cash provided by (used in) operating
activities
|
|
|
264.4
|
|
(443.9)
|
|
(21.9)
|
|
(1,685.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING AND FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Capital and software
expenditures
|
|
|
(68.3)
|
|
(145.7)
|
|
(136.5)
|
|
(285.5)
|
|
|
Business acquisitions,
net of cash acquired
|
|
|
-
|
|
(9.1)
|
|
-
|
|
(45.6)
|
|
|
Proceeds from debt
issuances, net of fees
|
|
|
(1.3)
|
|
(2.2)
|
|
745.9
|
|
992.6
|
|
|
Stock purchase contract
fees
|
|
|
-
|
|
(9.8)
|
|
-
|
|
(19.6)
|
|
|
Credit facility
borrowings
|
|
|
-
|
|
-
|
|
-
|
|
2,250.0
|
|
|
Net short-term
commercial paper (repayments) borrowings
|
|
|
(42.0)
|
|
746.6
|
|
(327.9)
|
|
1,341.4
|
|
|
Proceeds from issuances
of common stock
|
|
|
4.0
|
|
5.9
|
|
7.1
|
|
19.6
|
|
|
Purchases of common
stock for treasury
|
|
|
(0.8)
|
|
(1.1)
|
|
(5.6)
|
|
(2,314.1)
|
|
|
Craftsman contingent
consideration
|
|
|
(8.9)
|
|
(11.3)
|
|
(18.0)
|
|
(21.1)
|
|
|
Termination of interest
rate swaps
|
|
|
-
|
|
-
|
|
-
|
|
22.7
|
|
|
Cash dividends on
common stock
|
|
|
(119.7)
|
|
(114.0)
|
|
(239.5)
|
|
(230.3)
|
|
|
Effect of exchange rate
changes on cash
|
|
|
(14.2)
|
|
(22.4)
|
|
(5.1)
|
|
(17.6)
|
|
|
Other
|
|
|
|
(8.0)
|
|
(5.4)
|
|
(7.5)
|
|
5.8
|
|
|
Net cash (used in) provided by investing and
financing activities
|
|
|
(259.2)
|
|
431.5
|
|
12.9
|
|
1,698.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash, cash equivalents and
restricted cash
|
|
|
5.2
|
|
(12.4)
|
|
(9.0)
|
|
13.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash, beginning
of period
|
|
|
390.7
|
|
320.5
|
|
404.9
|
|
294.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash, end of
period
|
|
|
$
395.9
|
|
$
308.1
|
|
$
395.9
|
|
$
308.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
Computation2
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
$
264.4
|
|
$
(443.9)
|
|
$
(21.9)
|
|
$
(1,685.0)
|
|
Less: capital and
software expenditures
|
|
|
(68.3)
|
|
(145.7)
|
|
(136.5)
|
|
(285.5)
|
|
Free cash flow (before
dividends)
|
|
|
$
196.1
|
|
$
(589.6)
|
|
$
(158.4)
|
|
$
(1,970.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash, Cash Equivalents and
Restricted Cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2023
|
|
December 31, 2022
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
391.4
|
|
$
395.6
|
|
|
|
|
|
Restricted cash
included in Other current assets
|
|
|
4.5
|
|
9.3
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
|
$
395.9
|
|
$
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER
|
|
YEAR-TO-DATE
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
NET SALES
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
3,542.2
|
|
$
3,744.9
|
|
$
6,857.6
|
|
$
7,546.1
|
|
Industrial
|
|
616.7
|
|
648.1
|
|
1,233.1
|
|
1,294.7
|
|
Segment Net Sales
|
|
4,158.9
|
|
4,393.0
|
|
8,090.7
|
|
8,840.8
|
|
Corporate
Overhead
|
|
-
|
|
-
|
|
-
|
|
0.2
|
|
Total
|
|
$
4,158.9
|
|
$
4,393.0
|
|
$
8,090.7
|
|
$
8,841.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
102.0
|
|
$
361.6
|
|
$
120.7
|
|
$
740.1
|
|
Industrial
|
|
71.6
|
|
58.3
|
|
139.0
|
|
99.6
|
|
Segment Profit
|
|
173.6
|
|
419.9
|
|
259.7
|
|
839.7
|
|
Corporate
Overhead
|
|
(78.8)
|
|
(65.5)
|
|
(154.5)
|
|
(140.2)
|
|
Total
|
|
$
94.8
|
|
$
354.4
|
|
$
105.2
|
|
$
699.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as a Percentage of Net
Sales
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
2.9 %
|
|
9.7 %
|
|
1.8 %
|
|
9.8 %
|
|
Industrial
|
|
11.6 %
|
|
9.0 %
|
|
11.3 %
|
|
7.7 %
|
|
Segment Profit
|
|
4.2 %
|
|
9.6 %
|
|
3.2 %
|
|
9.5 %
|
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 2023
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges &
Other1
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
932.1
|
|
$
51.4
|
|
$
983.5
|
|
|
% of Net Sales
|
|
22.4 %
|
|
|
|
23.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
837.3
|
|
(25.4)
|
|
811.9
|
|
|
% of Net Sales
|
|
20.1 %
|
|
|
|
19.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
94.8
|
|
76.8
|
|
171.6
|
|
|
% of Net Sales
|
|
2.3 %
|
|
|
|
4.1 %
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before income taxes
|
(75.8)
|
|
71.1
|
|
(4.7)
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on
continuing operations
|
|
(253.3)
|
|
265.5
|
|
12.2
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
from continuing operations attributable to common shareowners -
Diluted
|
177.5
|
|
(194.4)
|
|
(16.9)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share of common stock - Continuing operations
|
$
1.18
|
|
$
(1.29)
|
|
$
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relate primarily to footprint actions and other
costs associated with the supply chain transformation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER 2022
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges &
Other2
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
1,207.1
|
|
$
16.6
|
|
$
1,223.7
|
|
|
% of Net Sales
|
|
27.5 %
|
|
|
|
27.9 %
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
852.7
|
|
(32.9)
|
|
819.8
|
|
|
% of Net Sales
|
|
19.4 %
|
|
|
|
18.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
354.4
|
|
49.5
|
|
403.9
|
|
|
% of Net Sales
|
|
8.1 %
|
|
|
|
9.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
15.9
|
|
248.1
|
|
264.0
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on
continuing operations
|
|
(62.8)
|
|
52.5
|
|
(10.3)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations attributable to common shareowners -
Diluted
|
79.0
|
|
195.6
|
|
274.6
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock - Continuing operations
|
$
0.51
|
|
$
1.26
|
|
$
1.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relate primarily to a non-cash asset impairment
charge related to the Oil & Gas business, integration-related
costs,
non-cash inventory step-up charges and restructuring.
|
|
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
|
|
$
1,767.6
|
|
$
124.8
|
|
$
1,892.4
|
|
|
% of Net Sales
|
|
21.8 %
|
|
|
|
23.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
1,662.4
|
|
(46.1)
|
|
1,616.3
|
|
|
% of Net Sales
|
|
20.5 %
|
|
|
|
20.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
105.2
|
|
170.9
|
|
276.1
|
|
|
% of Net Sales
|
|
1.3 %
|
|
|
|
3.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before income taxes
|
(239.9)
|
|
177.9
|
|
(62.0)
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on
continuing operations
|
|
(229.6)
|
|
245.1
|
|
15.5
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations attributable to common shareowners -
Diluted
|
(10.3)
|
|
(67.2)
|
|
(77.5)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share
of common stock - Continuing operations
|
$
(0.07)
|
|
$
(0.45)
|
|
$
(0.52)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relate primarily to 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
|
|
$
2,512.5
|
|
$
105.4
|
|
$
2,617.9
|
|
|
% of Net Sales
|
|
28.4 %
|
|
|
|
29.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
1,813.0
|
|
(111.8)
|
|
1,701.2
|
|
|
% of Net Sales
|
|
20.5 %
|
|
|
|
19.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
699.5
|
|
217.2
|
|
916.7
|
|
|
% of Net Sales
|
|
7.9 %
|
|
|
|
10.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
194.4
|
|
469.5
|
|
663.9
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes on
continuing operations
|
|
(39.9)
|
|
82.3
|
|
42.4
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations attributable to common shareowners -
Diluted
|
234.8
|
|
387.2
|
|
622.0
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share of common stock - Continuing operations
|
$
1.47
|
|
$
2.41
|
|
$
3.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relate primarily to a non-cash asset impairment
charge related to the Oil & Gas business, non-cash
inventory
step-up charges, restructuring, integration-related costs, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER 2023
|
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges and
Other1
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
102.0
|
|
$
55.8
|
|
$
157.8
|
|
|
|
Industrial
|
|
71.6
|
|
8.5
|
|
80.1
|
|
|
|
Segment Profit
|
|
173.6
|
|
64.3
|
|
237.9
|
|
|
|
Corporate
Overhead
|
|
(78.8)
|
|
12.5
|
|
(66.3)
|
|
|
|
Total
|
|
$
94.8
|
|
$
76.8
|
|
$
171.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as a Percentage of Net
Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
2.9 %
|
|
|
|
4.5 %
|
|
|
|
Industrial
|
|
11.6 %
|
|
|
|
13.0 %
|
|
|
|
Segment Profit
|
|
4.2 %
|
|
|
|
5.7 %
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Acquisition-related
charges and other relate primarily to footprint actions and other
costs associated with the
supply chain transformation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SECOND QUARTER 2022
|
|
|
|
|
|
GAAP
|
|
Acquisition-
Related
Charges and
Other2
|
|
Non-GAAP3
|
|
|
|
|
|
|
|
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
$
361.6
|
|
$
41.3
|
|
$
402.9
|
|
|
|
Industrial
|
|
58.3
|
|
1.9
|
|
60.2
|
|
|
|
Segment Profit
|
|
419.9
|
|
43.2
|
|
463.1
|
|
|
|
Corporate
Overhead
|
|
(65.5)
|
|
6.3
|
|
(59.2)
|
|
|
|
Total
|
|
$
354.4
|
|
$
49.5
|
|
$
403.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as a Percentage of Net
Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
9.7 %
|
|
|
|
10.8 %
|
|
|
|
Industrial
|
|
9.0 %
|
|
|
|
9.3 %
|
|
|
|
Segment Profit
|
|
9.6 %
|
|
|
|
10.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Acquisition-related
charges and other relate primarily to integration-related costs and
non-cash inventory
step-up charges.
|
|
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
|
|
$
120.7
|
|
$
135.0
|
|
$
255.7
|
|
|
|
Industrial
|
|
139.0
|
|
8.8
|
|
147.8
|
|
|
|
Segment Profit
|
|
259.7
|
|
143.8
|
|
403.5
|
|
|
|
Corporate
Overhead
|
|
(154.5)
|
|
27.1
|
|
(127.4)
|
|
|
|
Total
|
|
$
105.2
|
|
$
170.9
|
|
$
276.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as a Percentage of Net
Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
1.8 %
|
|
|
|
3.7 %
|
|
|
|
Industrial
|
|
11.3 %
|
|
|
|
12.0 %
|
|
|
|
Segment Profit
|
|
3.2 %
|
|
|
|
5.0 %
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
740.1
|
|
$
195.0
|
|
$
935.1
|
|
|
|
Industrial
|
|
99.6
|
|
5.4
|
|
105.0
|
|
|
|
Segment Profit
|
|
839.7
|
|
200.4
|
|
1,040.1
|
|
|
|
Corporate
Overhead
|
|
(140.2)
|
|
16.8
|
|
(123.4)
|
|
|
|
Total
|
|
$
699.5
|
|
$
217.2
|
|
$
916.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profit as a Percentage of Net
Sales
|
|
|
|
|
|
|
|
|
Tools &
Outdoor
|
|
9.8 %
|
|
|
|
12.4 %
|
|
|
|
Industrial
|
|
7.7 %
|
|
|
|
8.1 %
|
|
|
|
Segment Profit
|
|
9.5 %
|
|
|
|
11.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
View original content to download
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SOURCE Stanley Black &
Decker