Black & Decker 2011 Annual Report Download - page 3

As we look forward in the short term, we believe that
our Company is well-positioned to enjoy the benefits
of a potentially more favorable construction cycle and
overall economic conditions in the U.S. but also poised to
deliver if these benefits don’t materialize and if Europe’s
economic woes worsen to some extent.
For the long term, we expect to continue to deliver
above-average revenue, EPS and cash flow growth while
continuing an investor-friendly orientation to our capital
allocation. We would like to take this opportunity to reit-
erate the mid-decade goals we communicated a year ago
at our analyst meeting:
• $ Billion in Revenue
• Greater than % Operating Margin Rate
• Return on Capital Employed of %
•  Working Capital Turns
• %+ of Revenues from Emerging Markets
We remain confident we are on track to meet, if not
exceed, these goals and that, in doing so, we will continue
to create outstanding and dependable shareholder value.
Our stated strategy of continuous evolution as a diversi-
fied industrial company remains in place, even as we look
to enjoy the benefits of an improving construction cycle as
Total revenues were up .%, on a pro forma basis, to
$. billion. Earnings per share (EPS) grew % to $.*
and our dividend was increased %. Working capital
turns increased % to ., as the tenets of the Stanley
Fulfillment System were further embedded into the
global enterprise.
 was also important because we began to see
tangible evidence of the successful crystallization of the
benefits of merging Stanley and Black & Decker, two iconic
companies in their own right, which together comprise
something very compelling to our customers, inves-
tors and employees. Some might be surprised to learn
that Stanley Black & Decker is a growth company with a
forward-looking approach and a track record to be proud
of. Since , revenues and EPS have grown at a %
and %* compound annual growth rate (CAGR), respec-
tively. We are stewards of capital and focus acutely on
aggressively generating cash, reinvesting it wisely and
returning substantial amounts to our shareholders every
year. Perhaps that is one reason why we have considerably
outperformed the S&P’s total return on each of a
three-, a five- and a ten-year basis. These metrics are
very important to us because we are not satisfied with
simply performing at benchmark. Outperformance is
what we strive for day in and day out and, thus far, we
have delivered.
2011 was a notable year for our Company. It was a year
during which we drove change, growth and value in
virtually every business and region where we compete,
despite very little help from our external markets,
particularly those which are construction-related. It
was also a year in which revenues reached $10 billion
and free cash flow (FCF) exceeded $1 billion* for the
first time in our history.
Letter to Shareholders
Stanley Black and Decker 2011 Annual Report
* Excluding merger and acquisition-related charges and payments.
Pro forma amounts assume that the merger with Black & Decker occurred at the
beginning of 2010.