Stanley Black & Decker revenues up 9%
Net sales of $2.9 billion are attributable to volume (+4%) and acquisitions (+6%), partially offset by currency (-1%); price was flat for the quarter. The gross margin rate for the quarter was 35.5%.
Excluding charges, the gross margin rate was 35.6%, down slightly from the prior year rate of 36.0%, as the favorable impact of volume, productivity and cost synergies was more than offset by emerging market currency pressures and lower Security margins.
SG&A expenses were 24.2% of sales. Excluding charges, SG&A expenses were 22.6% of sales, relatively unchanged from the 4Q'12 level of 22.5%. Operating margin was 11.3% of sales. Excluding charges, operating margin was 13% of sales, down 50 basis points from prior year.
The tax rate was a benefit of 20.6%. Excluding charges, the rate was 22.1%, in line with expectations. Working capital turns for the quarter were 8.0, up 0.4 turns from 4Q'12. Free cash flow was $698 million, excluding $69 million of charges and payments.
Stanley Black & Decker's chairman and CEO, John F. Lundgren, said, "During 2013 we made significant progress driving organic growth throughout the organization and the fourth quarter was no exception as the momentum continued from our organic growth initiatives. CDIY and Industrial delivered strong top and bottom line growth in spite of FX headwinds and on-going challenging global market conditions." ■