The Stanley Works (SWK) announced decent results for the fourth quarter and full-year 2009. For the fourth quarter of 2009, Stanley reported an EPS of $0.67 compared to $0.05 in the year-ago quarter. Reported EPS for the quarter was below the Zacks Consensus Estimate of $0.76. The increase in EPS is attributable to continued success of well-executed productivity projects combined with strict control on costs.
Net revenues decreased to $969.4 million from $1,085.9 million in the fourth quarter of 2008 due to a 16% decline in unit volume. During fiscal year 2009, revenues reached $3,737.1 million, down 15.6% year over year due to a 20% decline in unit volume. Currency translation also negatively impacted revenues by 2%. The decrease was also due to the continued weakness in both U.S. and Europe during 2009.
The Security segment reported a fourth quarter and full-year 2009 revenues of $393 million and 1,560 million, respectively. During the quarter it was down 4%, while during full year it was up 4%.
The Industrial segment reported revenue of $236 million and $882 million during the fourth quarter and full year 2009. It was down 23% and 31% respectively. CDIY segment reported 8% and 22% decline in revenues during the fourth quarter and full-year 2009 and reached $340 million and $1,295 million respectively.
Stanley reported full-year 2009 free cash flow of $446 million, up 6% versus 2008 and expects free cash flow for 2010 to be approximately $300 to $350 million. Stanley expects 2010 EPS in the range of $3.00 to $3.25.
Stanley is expected to close the integration of Black & Decker Corporation (BDK) by the end of first quarter 2010 or the beginning of the second quarter. Management believes that the transaction will support the continued expansion of its global business platform.
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