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 15, 1999
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:(860) 225-5111
Not Applicable
(Former name or former address, if changed since last report)
Page 1 of 9 Pages
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
(c) 20(i) Description of new business segment
presentation and discussion of the
restated Business Segment Information for
fiscal years 1998, 1997 and 1996.
(c) 20(ii) Business Segment Information for fiscal
years 1998, 1997 and 1996.
(c) 20(iii) Quarterly Business Segment Information for
fiscal year 1998.
Page 2 of 9 Pages
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 15, 1999 By: Stephen S. Weddle
Name: Stephen S. Weddle
Title: Vice President, General
Counsel and Secretary
Page 3 of 9 Pages
EXHIBIT INDEX
Current Report on Form 8-K
Dated March 15, 1999
Exhibit No. Page
20(i) 5
20(ii) 7
20(iii) 9
Page 4 of 9 Pages
Exhibit (20)(i)
In 1998 the company adopted Statement of Financial
Accounting Standards No. 131, "Disclosures about Segments of
a Business Enterprise and Related Information". As a
result, the company changed its depiction of operating
segments to Tools and Doors. Prior year amounts have been
restated for comparability. The Tools segment includes
carpenters, mechanics, pneumatic and hydraulic tools as well
as tool sets. The Doors segment includes commercial and
residential doors, both automatic and manual, as well as
closet doors and systems, home decor and door and consumer
hardware. The basis of segment reporting is Core Operating
Profit, which excludes restructuring charges, restructuring-
related transition and other non-recurring costs; segment
eliminations are also excluded.
Tools Segment
Net sales increased 4% in 1998, due primarily to the growth
of the MacDirect venture and acquisitions. Growth in
consumer mechanics tools and fastening tools and fasteners
also contributed to higher sales. Operating profit
increased, although as a percent of sales it was slightly
lower than the prior year. Productivity gains from
procurement and restructuring initiatives were offset by
lower margins and absorption on lower fourth quarter sales
and by operating inefficiencies at the Mechanics Tools
wrench and socket plants.
Net sales increased 2% in 1997 over 1996 with particular
strength in fastening tools and fasteners. All product
lines experienced sales growth; however, the gains were
partially offset by price reductions, particularly in
fastening tools. Operating margins increased to 13.7% of
sales from 12.4% due to manufacturing efficiencies from
higher volume and restructuring savings.
Doors Segment
Net sales decreased 4% in 1998 compared to 1997, due to
the divestiture in 1998 of the European automatic door
business as well as the February 1997 divestiture of the US
garage related products business. In addition, all
remaining product lines experienced a sales decline except
for the automatic door business in the US. Operating margin
improved to 9.5%, primarily the result of the divestitures,
restructuring initiatives and reduction in material costs.
Page 5 of 9 Pages
Net sales decreased 7% from 1996 to 1997. The divestiture
of the US garage related products business as well as start
up difficulties in moving hardware products to a new central
distribution facility were the primary contributors.
Operating profit improved to 8.1% from 7.9% due to the
divestiture and benefits from restructuring initiatives.
Page 6 of 9 Pages
Exhibit (20)(ii)
THE STANLEY WORKS AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)
Industry Segments
1998 1997 1996
Net Sales
Tools $2,107.8 $2,023.6 $1,976.2
Doors 621.3 645.9 694.6
Consolidated $2,729.1 $2,669.5 $2,670.8
Operating Profit
Tools $ 278.6 $ 276.8 $ 245.1
Doors 58.9 52.6 54.6
Total 337.5 329.4 299.7
Restructuring, transition
& other costs (85.9) (320.1) (88.3)
Other-net (13.1) (11.3) (14.7)
Interest-net (23.1) (16.6) (22.5)
Earnings (loss)
before income taxes $ 215.4 $ (18.6) $ 174.2
Segment Assets
Tools $1,462.9 $1,227.6 $1,256.9
Doors 279.6 291.5 318.0
Total 1,742.5 1,519.1 1,574.9
Corporate assets 190.4 239.6 84.7
Consolidated $1,932.9 $1,758.7 $1,659.6
Capital Expenditures
Tools $ 53.1 $ 70.2 $ 81.1
Doors 11.6 13.9 20.9
Depreciation &
Amortization
Tools $ 57.2 $ 53.5 $ 52.7
Doors 14.2 11.7 13.2
Page 7 of 9 Pages
Geographic Areas
1998 1997 1996
Net Sales
United States $1,953.4 $1,900.6 $1,909.3
Other Americas 211.9 227.1 209.8
Europe 467.5 423.6 421.8
Asia 96.3 118.2 129.9
Consolidated $2,729.1 $2,669.5 $2,670.8
Long-Lived Assets
United States $ 461.1 $ 479.7 $ 544.8
Other Americas 25.4 31.0 33.1
Europe 284.3 159.8 119.4
Asia 41.7 46.8 51.4
Other 34.0 36.1 -
Consolidated $ 846.5 $ 753.4 $ 748.7
Page 8 of 9 Pages
Exhibit (20)(iii)
THE STANLEY WORKS AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)
1998
First Second Third Fourth Full
Qtr Qtr Qtr Qtr Year
INDUSTRY SEGMENTS
Net Sales
Tools $ 512.5 $ 532.7 $ 535.1 $ 527.5 $2,107.8
Doors 159.4 159.1 154.5 148.3 621.3
Consolidated $ 671.9 $ 691.8 $ 689.6 $ 675.8 $2,729.1
Operating Profit
Tools $ 67.1 $ 79.2 $ 72.0 $ 60.3 $ 278.6
Doors 15.0 13.9 17.2 12.8 58.9
Total 82.1 93.1 89.2 73.1 337.5
Restructuring, transition
& other costs (16.3) (16.3) (25.5) (27.8) (85.9)
Other-net (2.8) (4.1) (2.7) (3.5) (13.1)
Interest-net (4.8) (5.2) (7.4) (5.7) (23.1)
Earnings before
income taxes $ 58.2 $ 67.5 $ 53.6 $ 36.1 $ 215.4
GEOGRAPHIC NET SALES
United States $ 475.3 $ 502.1 $ 493.8 $ 482.2 $1,953.4
Other Americas 55.5 57.0 51.1 48.3 211.9
Europe 119.9 109.6 118.9 119.1 467.5
Asia 21.2 23.1 25.8 26.2 96.3
Consolidated $ 671.9 $ 691.8 $ 689.6 $ 675.8 $2,729.1
Page 9 of 9 Pages
