Black & Decker 2013 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2013 Black & Decker annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Our mission remains to continue to invest in building world-class
franchises with sustainable strategic characteristics that create
exceptional shareholder value, a model that has proven highly
successful for us over the course of the last decade.
In 2013 Stanley Black & Decker faced
a number of challenges, testing our
ability to generate financial returns at
our historical levels. The success of
our organic growth initiatives, solid
growth across our core CDIY and IAR
tools businesses, strong performance
within Stanley Engineered Fastening
and Oil & Gas, and excellent progress
integrating Infastech were overshadowed
by weak operating performance within
our Security segment and significant
emerging markets currency headwinds.
As a result, we have adopted a series
of actions designed to address these
challenges head-on, and enter 2014
with a clear set of priorities to increase
operating efficiencies, drive profitable
organic growth, improve our cash flow
return on investment (CFROI) and increase
value for shareholders through an
enhanced capital return program.
Longer-term, our mission remains to
continue to invest in building world-class
franchises with sustainable strategic
characteristics that create exceptional
shareholder value, a model that has
proven highly successful for us over the
course of the lastdecade.
2013Summary of Results
• Total revenues increased 8% to
$11.0 billion, with organic growth of3%
• Earnings per share was $4.98*
compared to $4.76* in2012
• Free cash flow totaled $854*million
and the dividend was increased during
theyear
• Working capital turns increased to
8.0 from 7.6, as the impact of the
Stanley Fulfillment System continued to
drive gains in operatingefficiencies
• During the year we invested approx-
imately $900million in acquisitions
most notably relating to Infastech
andGQ
• Our Security segment underperformed
against both our expectations in 2013
and the business’ potential; improving
our Security segment is one of our
key near-term operational priorities as
we move into 2014 andbeyond
* Excludingcharges and payments
Letter to Shareholders
01
right
James M. Loree
President &
Chief Operating Officer
left
John F. Lundgren
Chairman &
Chief Executive Officer