2016 Year in Review

Our
Businesses

A Global Diversified Industrial Leader

Industrial $1.8B

  • STANLEY Engineered Fastening
  • Infrastructure

Security $2.1B

  • Commercial Electronic Security
  • Mechanical Access

Tools & Storage $7.5B

  • Power Tools
  • Hand Tools, Accessories & Storage

#1

In Tools and Storage

#2

In Commercial Electronic Security

Global Leader

IN ENGINEERED FASTENING

6

CONSECUTIVE YEARS DOW JONES SUSTAINABILITY INDEX

Tools & Storage

The worldwide leader in tools and storage, we create the tools that build and maintain the world. Tradespeople and Do-It-Yourselfers alike rely on us every day for the toughest, strongest, most innovative hand tools, power tools and storage solutions in the market.

Financial Highlights

(MILLIONS OF DOLLARS)
2016

Revenue
$7,469.2

Segment Profit – $
$1,266.9

Segment Profit – %
17.0%

Business Highlights

  • +7% organic growth and record operating margin rate
  • Successful launch of DEWALT FLEXVOLT system generating ~$100 million of revenues in four months
  • +65% growth year-over-year in Home Products portfolio
  • +8% growth in U.S. retail business year-over-year—double the rate of growth of major retailers
  • +22% growth in the UK and Ireland in a market challenged for growth
  • 1M square foot distribution center opened in Fontana, California; over 900 skylights eliminate need for electric lights during daylight hours
  • $1M single order for Lista workstations, Kuwait University
  • 104% growth in sales of STANLEY tools in Turkey, with new distributorship model

+70%

Organic Growth and record operating margin rate

+70%

Organic Growth and record operating margin rate

Security

We deliver peace of mind with advanced electronic safety, security and monitoring solutions, automatic doors, and sophisticated patient safety, asset tracking and productivity solutions.

Financial Highlights

(MILLIONS OF DOLLARS)
2016

Revenue
$2,097.4

Segment Profit – $
$269.2

Segment Profit – %
12.8%

Business Highlights

  • 1% organic growth led by 2% growth in Europe
  • 140 bps expansion in segment profit rate versus prior year
  • 85th anniversary of the first pneumatic door operator patented for the Stanley Works in 1931
  • 175,000+ apprehensions of criminals since 1977 due to Sonitrol verified electronic security
  • $725M in cash agreement reached to sell mechanical security operations to dormakaba

+1%

Organic Growth and 140 Basis Point Operating Margin Rate Expansion

+1%

Organic Growth and 140 Basis Point Operating Margin Rate Expansion

Industrial

We build the solutions that keep your world running seamlessly—from preferred engineered fastening solutions in the automotive and industrial markets to infrastructure solutions including pipeline construction and hydraulic tools.

Financial Highlights

(MILLIONS OF DOLLARS)
2016

Revenue
$1,840.3

Segment Profit – $
$304.4

Segment Profit – %
16.5%

Business Highlights

  • 9% automotive organic growth by STANLEY Engineered Fastening's Europe and Asia operations
  • Jaguar Land Rover named STANLEY Engineered Fastening as single source supplier of self-piercing rivets and systems for two new Land Rover series
  • +5% gains in productivity year-over-year in 2014, 2015 and 2016 achieved by STANLEY Engineered Fastening
  • ~$25M renewal of single source global agreement through 2019 with major U.S. auto OEM for our stud welding systems
  • Multi-million-dollar installation of a revolutionary CribMaster real-time asset tracking solution for aircraft maintenance and repair operation at a global transportation company; project completed with the assistance of our Digital Accelerator team and other technology partners
  • 15% growth in the fourth quarter by STANLEY Hydraulics—its first quarter of organic growth in nearly two years
  • Third consecutive year of double-digit organic growth in China by STANLEY Hydraulics
  • Launch of LaBounty UPX (universal processor platform) with industry's best power-to-weight ratio
  • +200K pipe welds in 2016, a record for STANLEY Oil & Gas; includes world-record 145 welds on 56” pipe in one day on the TANAP onshore project
  • 345-liter field joint on the Kaombo offshore project by STANLEY Oil & Gas, a new world record

+9%

automotive organic growth in STANLEY Engineered Fastening in Europe and Asia

+9%

automotive organic growth in STANLEY Engineered Fastening in Europe and Asia

https://www.youtube.com/embed/MnFjwUd7l9s?autoplay=1 https://www.youtube.com/embed/T6QiWUR0pGI?autoplay=1 http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/764/467/BD_2IN1_Autosense.ogg http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/764/467/BD_2IN1_Autosense.webm http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/764/467/BD_2IN1_Autosense__445621.mp4 http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/764/467/DIYZ_Slide11_DIYZTestimonials_FINAL.ogg http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/764/467/DIYZ_Slide11_DIYZTestimonials_FINAL.webm http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/764/467/DIYZ_Slide11_DIYZTestimonials_FINAL__871769.mp4 http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/764/467/PF_Overview-Ashley_v6_1920x1080.ogg http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/764/467/PF_Overview-Ashley_v6_1920x1080.webm http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/764/467/PF_Overview-Ashley_v6_1920x1080.mp4 http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/759/586/DEWALT_FLEXVOLT__DCS7485_60V_MAX_Table_Saw_First_Look_[HD,_1280x720p].ogg http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/759/586/DEWALT_FLEXVOLT__DCS7485_60V_MAX_Table_Saw_First_Look_[HD,_1280x720p].webm http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/759/586/DEWALT_FLEXVOLT__DCS7485_60V_MAX_Table_Saw_First_Look_[HD,_1280x720p].mp4 http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/759/586/DEWALT_FLEXVOLT__DHS790_60V_MAX_Miter_Saw_[HD,_1280x720p].ogg http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/759/586/DEWALT_FLEXVOLT__DHS790_60V_MAX_Miter_Saw_[HD,_1280x720p].webm http://pmd367314tn-a.akamaihd.net/Corporate_-_Internal_VMS/759/586/DEWALT_FLEXVOLT__DHS790_60V_MAX_Miter_Saw_[HD,_1280x720p].mp4