SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 16, 2004
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The Stanley Works
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(Exact name of registrant as specified in charter)
Connecticut 1-5244 06-0548860
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
1000 Stanley Drive, New Britain, Connecticut 06053
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (860) 225-5111
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Not Applicable
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(Former name or former address, if changed since last report)
Exhibit Index is located on Page 4
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Item 7. Financial Statements and Exhibits.
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(c) 20(i) Press Release dated March 16, 2004 regarding first quarter and
full year 2004 earnings guidance.
Item 12. Results of Operation and Financial Condition.
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In a press releases attached to this current report on Form 8-K,
the company provided guidance for the first quarter and full year
2004.
This information is this current report on Form 8-k will not be
deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934 (the "Exchange Act"), or otherwise subject
to the liability of that section, and will not be incorporated by
reference into any registration statement or other document filed
under the Securities Act of 1933 or the Exchange Act, except as
expressly set forth by specific reference in such filing.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
THE STANLEY WORKS
Date: March 16, 2004 By: /s/ Bruce H. Beatt
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Name: Bruce H. Beatt
Title: Vice President, General
Counsel and Secretary
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EXHIBIT INDEX
Current Report on Form 8-K
Dated March 16, 2004
Exhibit No. Page No.
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20(i) 5
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Exhibit 20(i)
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FOR IMMEDIATE RELEASE
STANLEY WORKS RAISING EARNINGS GUIDANCE ON SHARPLY HIGHER REVENUE GROWTH
New Britain, Connecticut, March 16, 2004 ... The Stanley Works (NYSE: SWK)
announced today that January and February 2004 sales from continuing operations
increased in excess of 20 percent over the same two months of 2003 and, aside
from the impacts of recent acquisitions, organic sales growth exceeded 15
percent in the two-month period. The company now expects first quarter organic
sales to increase by a low to mid-teens percentage. Current order rates remain
robust and are consistent with these sales trends.
The favorable sales volume is broad based, evident across virtually all the
company's businesses:
- Robust demand continues from home center and mass merchant customers.
- Industrial tool demand is benefiting from notably improved economic
conditions.
- Security Solutions revenue is up sharply on the strength of service-related
share gains, primarily at national accounts.
- Europe and Asia continue to benefit from favorable currency translations.
As a result, the company expects earnings per fully diluted share to approximate
63-67 cents in the first quarter, significantly higher than the prior estimate
of 49-51 cents from continuing operations provided on January 29, 2004. If
current sales and order trends continue through March, actual results could
potentially exceed this revised guidance.
The company's previous indication was that full year 2004 earnings were expected
to be approximately $2.50 - $2.60 per fully diluted share from continuing
operations. Considering the higher first quarter estimate and the positive
business environment and operational execution, the company expects its full
year earnings estimate to increase by at least the amount of the first quarter
out performance, and likely more. The company will provide second quarter and
updated full year guidance in the first quarter earnings release on April 27,
2004, by which time it is anticipated that commodity price trends (especially
steel) will have stabilized and the timing and amount of related pricing
recovery actions will be fully understood.
First quarter estimates above are from continuing operations and do not include
the pre-tax gain of approximately $100 million from the sale of the company's
residential entry door business to Masonite Corporation on March 2, 2004.
Contact: Gerry Gould
Vice President - Investor Relations
(860) 827-3833
ggould@stanleyworks.com
The Stanley Works, an S&P 500 company, is a worldwide supplier of tools,
hardware and security systems for professional, industrial and consumer use.
More information about The Stanley Works can be found, including corporate press
releases, in the Investor Relations section of the company's corporate web site
at www.stanleyworks.com.
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CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995
Statements in the company's press releases attached to this Current Report on
Form 8-K regarding the company's ability to (i) increase first quarter organic
sales by a low to mid teens percentage; (ii) achieve first quarter earnings per
fully diluted share of approximately $.63 - $.67 or more; (iii) increase full
year earnings estimates by at least the amount of the first quarter out
performance or more; and (iv) benefit from stabilized steel and other commodity
price trends are forward looking and inherently subject to risk and uncertainty.
The company's ability to deliver the results as described above (the "Results")
is based on current expectations and involves inherent risks and uncertainties,
including factors listed below and other factors that could delay, divert, or
change any of them, and could cause actual outcomes and results to differ
materially from current expectations.
The company's ability to deliver the Results is dependent upon (i) the success
of the company in integrating its recently announced acquisitions; (ii) the
success of the company's efforts to decentralize its operations functions,
primarily in its Tools and Access Solutions business groups; (iii) the success
of the company's efforts to reduce its workforce and close certain facilities,
including the resolution of any labor issues related to such activities, the
need to respond to significant changes in product demand while any facility
consolidation is in process and other unforeseen events; (iv) continued
improvements in productivity and cost reductions; (v) the continued improvement
in the payment terms under which the company buys and sells goods, materials and
products; and (vi) the recovery of sales volume attributable to the company's
sale of its residential entry doors business.
The company's ability to deliver the Results is also dependent upon (i) the
continued success of the company's marketing and sales efforts, including the
company's ability to recruit and retain an adequate sales force; (ii) the
continued success of The Home Depot and Wal-Mart sales initiatives as well as
other programs to stimulate demand for company products; (iii) the success of
recruiting programs and other efforts to maintain or expand overall Mac Tools
truck count versus prior years; (iv) the ability of the sales force to adapt to
changes made in the sales organization and achieve adequate customer coverage;
(v) the ability of the company to fulfill demand for its products; and (vi) the
absence of increased pricing pressures from customers and competitors and the
ability to defend market share in the face of price competition.
The company's ability to achieve the Results will also be affected by external
factors. The company's ability to achieve the Results will be dependent upon
stabilization of the price of steel and other commodities and materials. These
external factors will also include pricing pressure and other changes within
competitive markets, the continued consolidation of customers in consumer
channels, inventory management pressures on the company's customers, increasing
competition, changes in trade, monetary, tax and fiscal policies and laws,
inflation, currency exchange fluctuations, the impact of dollar/foreign currency
exchange and interest rates on the competitiveness of products and the company's
debt program, the strength of the U.S. Economy and the impact of events that
cause or may cause disruption in the company's distribution and sales networks
such as war, terrorist activities, political unrest and recessionary or
expansive trends in the economies of the world in which the company operates.
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The company undertakes no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances that may arise
after the date hereof.
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