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): Oct. 5, 1995
The Stanley Works
Exact name of registrant as specified in charter)
Connecticut 1-5224 06-058860
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
1000 Stanley Drive, New Britain, Connecticut 06053
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(203) 225-5111
Not Applicable
(Former name or former address, if changed since last report)
Page 1 of 7 pages
Exhibit Index is located on Page 4
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Item 5. Other Events.
1. On October 5, 1995, the Registrant issued a
press release. On October 9, 1995, the Registrant issued a press
release.
Attached as Exhibit (20)(i) and (20)(ii) are
copies of the Registrant's press releases. These Exhibits are
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
(c) (20)(i) Press release dated October 5, 1995
announcing Stanley's plans to close a
manufacturing plant.
(20)(ii) Press release dated October 9, 1995
announcing Stanley's initial phase of
restructuring.
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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: October 9, 1995 By: Theresa F. Yerkes
-----------------
Name: Theresa F. Yerkes
Title: Vice President &
Controller
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EXHIBIT INDEX
Current Report on Form 8-K
Dated October 5, 1995
Exhibit No. Page
(20)(i) 5
(20)(ii) 6
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Exhibit (20)(i)
FOR IMMEDIATE RELEASE October 5, 1995
STANLEY TOOLS ANNOUNCES PLANS TO CLOSE WORCESTER, MASSACHUSETTS
MANUFACTURING FACILITY
Worcester, Massachusetts...It was announced today that Stanley Tools, a division
of The Stanley Works plans to close its manufacturing facility in Worcester,
Mass. Ralph Centola, Stanley Tools' Vice President of Manufacturing, told
employees assembled at the plant this morning that closure activities will begin
immediately, with completion targeted for early 1996.
Stanley Tools currently employs 124 people at the Worcester facility, which
manufactures locking pliers, box wrenches and power tool accessories. The
company will be discontinuing the manufacture of locking pliers and will
transfer remaining plant operations to its York, Pennsylvania facility which
manufactures similar products.
In his comments, Mr. Centola stated, "Actions such as this are never easy. The
employees of our Worcester Facility are valued individuals who have made
significant contributions to our company. Their welfare is very important to us,
and we are making every effort to provide an effective outplacement assistance
team and program to help them through this transition."
He continued, "The action that we announced today comes as a result of a
critical analysis that we have conducted throughout Stanley Tools to help
streamline our manufacturing processes and eliminate product categories that are
simply not carrying their weight. These steps are being taken throughout the
corporation to enable us to remain competitive as we continue to provide top
quality products and services for our customers."
The company plans to sell the 100,000 square foot building which is located at
149 Washington Street in Worcester.
Stanley Tools is a division of The Stanley Works, a worldwide manufacturer of
tools, hardware and specialty hardware for home improvement, consumer,
industrial and professional use. Stanley is headquartered in New Britain,
Connecticut.
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CONTACT: Patricia McLean
Manager, Corporate Communications
The Stanley Works
(203) 827-3833
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Exhibit (20)(ii)
FOR IMMEDIATE RELEASE October 9, 1995
STANLEY ANNOUNCES INITIAL PHASE OF RESTRUCTURING
New Britain, Connecticut (NYSE:SWK)...Richard H. Ayers, Chairman and Chief
Executive Officer of The Stanley Works today announced that the company will
take third quarter charges in connection with actions now underway to establish
a more cost-efficient base upon which to grow future sales and profits.
Stanley expects these charges to total approximately $44 million, or $.74 per
share.
Mr. Ayers commented, "Several actions are involved. We are closing four
manufacturing plants and three distribution centers resulting in a workforce
reduction of about 450 employees. These activities will result in a
restructuring charge of $30 million. The company will also take a restructuring
charge of $11 million as part of an assessment of individual business segment
performance and potential. This charge will reduce the book value of assets
related to some underperforming businesses. In addition to these restructuring
charges of $41 million, the company announced that it will incur costs of $3
million for related strategic consulting activity."
He continued, "The plant closings reflect the company's decision to exit small,
underperforming businesses such as shoe repair equipment and a line of generic
fastening products. We are also closing a plant connected with our Home Decor
division in France and one associated with our Hand Tools division in the U.S.
These operations have contributed approximately $30 million in sales on an
annual basis.
"The establishment in 1994 of the Stanley Customer Support Division to develop
stronger and more efficient relationships with the company's North American
consumer products customers has resulted in the planned consolidation of order
and distribution management and facilities for our consumer businesses. The
charges identified above reflect the closing of three distribution centers in
order to consolidate into a new and more efficient distribution center that will
handle the shipment of Stanley consumer products. Customer service and credit
and collection activity related to the consumer businesses are also being
consolidated and are included in the charge."
Not included in the expected third quarter charges are costs associated with a
recently announced reduction of approximately 350 employees in the salaried
workforce. The severance related to this activity, along with additional
restructuring charges, will be included in the fourth quarter.
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Page two
Mr. Ayers concluded, "All of the activities announced today are expected to
contribute a $20 million cost reduction in 1996, and a $35 million reduction in
our asset base. Initially, Stanley is concentrating on restructuring activities
to create a solid foundation for long-term growth. There will be additional
restructuring charges as we continue to focus on building a high performance
company. As we progress with our plans, the focus will move toward growth and
expansion, rather than realignment and restructuring. We will continue to
provide information about these developments as they occur."
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CONTACT: Patricia McLean
Manager, Corporate Communications
(203) 827-3833
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