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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
![[X]](xbox.gif){kind=small}
Quarterly Report Pursuant to Section 13 or 15(d)
of the
Securities Exchange Act of 1934
For the quarterly period ended June 28, 2003.
![[ ]](ebox.gif){kind=small}
Transition Report Pursuant to Section 13 or 15(d)
of
the Securities Exchange Act of 1934
For the transition period from [ ] to [ ]
Commission file number 1-5224
THE STANLEY WORKS
(Exact name of registrant as specified in its charter)
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| CONNECTICUT | |
06-0548860 | ||||
| (State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification Number) |
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| 1000 Stanley Drive New Britain, Connecticut |
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06053 |
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| (Address of principal executive offices) | |
(Zip Code) | ||||
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(860)
225-5111
(Registrant's
telephone number)
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days. Yes
No
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes
No
85,080,425 shares of the registrant's common stock were outstanding as of July 30, 2003.
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PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE STANLEY WORKS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 28, 2003 AND JUNE 29,
2002
(Unaudited,
Millions of Dollars, Except Per Share Amounts)
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Second Quarter | |
Year to Date | |||||||||||||||
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2003 | |
2002 | |
2003 | |
2002 | |||||||||||
| Net sales | |
$ | 699.7 | |
$ | 649.1 | |
$ | 1,365.9 | |
$ | 1,265.8 | ||||||
| Costs and expenses: | |
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| Cost of sales | |
468.7 | |
426.1 | |
916.4 | |
827.3 | ||||||||||
| Selling, general and administrative | |
161.1 | |
135.0 | |
318.0 | |
268.6 | ||||||||||
| Provision for doubtful accounts | |
12.7 | |
(0.1 | ) | |
28.1 | |
1.4 | |||||||||
| Interest expense | |
8.1 | |
6.9 | |
17.1 | |
14.0 | ||||||||||
| Interest income | |
(1.4 | ) | |
(1.0 | ) | |
(2.4 | ) | |
(1.7 | ) | ||||||
| Other, net | |
10.7 | |
(21.0 | ) | |
18.3 | |
(18.9 | ) | ||||||||
| Restructuring charges and asset impairments | |
21.9 | |
— | |
25.0 | |
— | ||||||||||
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681.8 | |
545.9 | |
1,320.5 | |
1,090.7 | |||||||||||
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| Earnings before income taxes | |
17.9 | |
103.2 | |
45.4 | |
175.1 | ||||||||||
| Income taxes | |
5.5 | |
39.9 | |
13.8 | |
62.9 | ||||||||||
| Net earnings | |
$ | 12.4 | |
$ | 63.3 | |
$ | 31.6 | |
$ | 112.2 | ||||||
| Net earnings per share of common stock: | |
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| Basic | |
$ | 0.14 | |
$ | 0.74 | |
$ | 0.37 | |
$ | 1.31 | ||||||
| Diluted | |
$ | 0.14 | |
$ | 0.72 | |
$ | 0.36 | |
$ | 1.28 | ||||||
| Dividends per share | |
$ | 0.26 | |
$ | 0.24 | |
$ | 0.51 | |
$ | 0.48 | ||||||
| Average shares outstanding (in thousands): | |
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| Basic | |
85,555 | |
85,822 | |
86,407 | |
85,677 | ||||||||||
| Diluted | |
86,002 | |
88,111 | |
86,988 | |
87,972 | ||||||||||
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See notes to condensed consolidated financial statements.
2
THE STANLEY WORKS AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
JUNE 28, 2003 AND DECEMBER 28, 2002
(Unaudited, Millions of
Dollars)
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2003 | |
2002 | |||||||
| ASSETS | |
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| Current assets: | |
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| Cash and cash equivalents | |
$ | 127.7 | |
$ | 121.7 | ||||
| Accounts and notes receivable | |
516.1 | |
548.0 | ||||||
| Inventories | |
448.0 | |
414.7 | ||||||
| Other current assets | |
108.1 | |
106.0 | ||||||
| Total current assets | |
1,199.9 | |
1,190.4 | ||||||
| Property, plant and equipment | |
1,322.3 | |
1,318.7 | ||||||
| Less: accumulated depreciation | |
856.8 | |
823.9 | ||||||
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465.5 | |
494.8 | |||||||
| Goodwill | |
420.6 | |
347.9 | ||||||
| Other intangible assets | |
201.0 | ||||||||