Stanley Black & Decker, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 29, 2012; Provides Earnings Guidance for the First Quarter and Full Year of Fiscal 2013; Provides Expansion Plans
January 24, 2013 at 08:00 am EST
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Stanley Black & Decker, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 29, 2012. For the quarter, the company's net sales were $2,668.5 million against $2,565.4 million a year ago. Income from operations was $164.6 million against $177.6 million a year ago. Earnings from continuing operations before income tax were $128.5 million against $147.4 million a year ago. Net earnings from continuing operations were $130.5 million against $153.3 million a year ago. Net earnings from continuing operations attributable to common shareowners were $130.1 million or $0.79 per diluted share against $153.8 million or $0.92 per diluted share a year ago. Net earnings attributable to common shareowners were $492.1 million or $2.99 per diluted share against $164.0 million or $0.98 per diluted share a year ago. Net cash provided by operating activities was $548.1 million against $543.3 million a year ago. Capital and software expenditures were $126.5 million against $105.7 million a year ago. Normalized earnings from continuing operations before income tax were $259.9 million against $226.4 million a year ago. Normalized net earnings from continuing operations were $225.1 million against $203.4 million a year ago. Normalized diluted earnings per share were $1.37 against $1.22 a year ago. Normalized net cash provided by operating activities was $692.4 million against $607.6 million a year ago. Normalized capital and software expenditures were $96.1 million against $53.8 million a year ago.
For the year, the company's net sales were $10,190.5 million against $9,435.5 million a year ago. Income from operations was $661.7 million against $762.3 million a year ago. Earnings from continuing operations before income tax were $527.6 million against $648.4 million a year ago. Net earnings from continuing operations were $448.7 million against $598.3 million a year ago. Net earnings from continuing operations attributable to common shareowners were $449.5 million or $2.70 per diluted share against $598.4 million or $3.52 per diluted share a year ago. Net earnings attributable to common shareowners were $883.8 million or $5.30 per diluted share against $674.6 million or $3.97 per diluted share a year ago. Net cash provided by operating activities was $966.2 million against $998.9 million a year ago. Capital and software expenditures were $386.0 million against $302.1 million a year ago. Normalized earnings from continuing operations before income tax were $969.8 million against $884.0 million a year ago. Normalized net earnings from continuing operations were $778.7 million against $784.3 million a year ago. Normalized diluted earnings per share were $4.67 against $4.61 a year ago. Normalized net cash provided by operating activities was $1,322.7 million against $1,217.3 million a year ago. Normalized capital and software expenditures were $263.6 million against $213.5 million a year ago. Free cash flow was $1.1 Billion, excluding charges & payments.
The company provided earnings guidance for the fiscal year 2013. The company expects diluted earnings of $5.40 to $5.65 a share. That's a 16% to 21% increase versus 2012, driven by organic growth in the range of 2% to 3%, 100 basis points of which the company believes will be driven by the early returns on some of the organic growth initiatives. About $100 million of operating expense investment over the three-year period, with about $65 million of it this year and about $50 million of onetime capital expenditures, is the price the company is implementing these programs. The company expects tax rate to increase in 2013 to 23% to 24%. The company expects free cash flow to be approximately $1 billion in 2013. Interest expense is to approximate $145 million. Including all charges, the Company expects EPS to approximate $4.62 to $4.87 in 2013. For the full year of 2013 the Company estimates the one-time after tax charges to be approximately $125 million, which includes $30 million for Infastech.
Historically EPS in the first quarter of the year is between 18-19% of full year EPS due to seasonality and that added to the impact of front-end loaded investments in the corporate growth initiatives, first quarter 2013 EPS will be approximately 17.5% of full year EPS.
The company announced it will expand its plant in Brazil and the company will continue to build plants as necessary as the volume begins to build up. There will be a combination of small acquisitions and relatively small capital expenditures for these plants.
Stanley Black & Decker, Inc. specializes in the design, manufacturing and marketing of tools and engineering solutions for professional, industrial and construction and consumer use. Net sales break down by family of products as follows:
- electric tools and accessories (71.1%): tools and electric devices (drills wire, sanders, saws, grinders, batteries, etc.), garden tools (shears, cutting edge, trimmers, aerators , grinders, chainsaws, etc.), vacuum cleaners, lamps, lights, battery chargers, starter batteries, power converters, hand tools (measuring and leveling tools, planes, hammers, knives, blades, screwdrivers, saws, etc.), consumer mechanics tools (wrenches and sockets), plastic tool boxes, pneumatic tools and fasteners (nail guns, staplers, staples, etc.);
- industrial products (16.2%): professional and automotive mechanics tools (wrenches, sockets, electronic diagnostic tools, etc.), storage systems, plumbing, heating and air conditioning tools (pipe wrenches, pliers, tubing cutters, etc.), hydraulic tools, etc.;
- access and security products (12.7%): automatic doors, door closers, emergency exit devices, locking mechanisms, integrated security devices, etc.
Net sales are distributed geographically as follows: the United States (60.5%), Canada (4.7%), Americas (4.2%), France (4%), Europe (19.2%) and Asia (7.4%).
Stanley Black & Decker, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 29, 2012; Provides Earnings Guidance for the First Quarter and Full Year of Fiscal 2013; Provides Expansion Plans