Stanley Black & Decker, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 30, 2017; Provides Earnings Guidance for the Year 2018
January 24, 2018 at 06:00 am
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Stanley Black & Decker, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 30, 2017. For the quarter, the company reported net sales of $3,413.5 million against $2,920.4 million a year ago. Income from operations was $388.4 million against $324.8 million a year ago. Earnings before income taxes were $341.8 million against $282.3 million a year ago. Net earnings were $281.1 million against $255.8 million a year ago. Net earnings attributable to common shareowners were $281.5 million or $1.84 per diluted share against $255.5 million or $1.71 per diluted share a year ago. Net cash provided by operating activities was $950.8 million against $835.2 million a year ago. Capital and software expenditures were $164.5 million against $125.3 million a year ago. Normalized earnings before income taxes was $368.9 million, normalized net income attributable to common shareowners was $334.7 million and normalized diluted earnings per share of common stock of $2.18.
For the year, the company reported net sales of $12,747.2 million against $11,406.9 million a year ago. Income from operations was $1,708.6 million against $1,397.4 million a year ago. Earnings before income taxes were $1,526.1 million against $1,226.1 million a year ago. Net earnings were $1,225.6 million against $964.9 million a year ago. Net earnings attributable to common shareowners were $1,226.0 million or $8.04 per diluted share against $965.3 million or $6.51 per diluted share a year ago. Net cash provided by operating activities was $1,418.6 million against $1,485.2 million a year ago. Capital and software expenditures were $442.4 million against $347.0 million a year ago. Normalized earnings before income taxes was $1,418.3 million, normalized net income attributable to common shareowners was $1,135.5 million and normalized diluted earnings per share of common stock of $7.45.
Management expects its 2018 EPS to be $7.80 - $8.00 on a GAAP basis and $8.30 - $8.50 on an adjusted basis. Free cash flow conversion is expected to approximate 100%. The company expects tax rate to approximate 18% reflecting the recently enacted U.S. tax legislation (approximately +$0.20 EPS).
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. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 30, 2017; Provides Earnings Guidance for the Year 2018
STANLEY BLACK & DECKER, INC. 
