Black & Decker 2014 Annual Report Download - page 4

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Stanley Black & Decker 2014 Annual Report
 BUSINESS HIGHLIGHTS
Notable 2014 highlights are summarized
below:
• Generated overall organic growth of
5%. Organic growth in CDIY was 7%
led by its European (+9%) and North
American (+7%) operations, as share
gains were powered by new product
introductions and expanded retail
partnerships. Engineered Fastening
achieved 6% growth driven primarily
by its automotive business volumes,
which consistently outpaced global light
vehicle production. Our IAR business
was up 5% organically as well.
• Improved the Company’s operating
margin 90 basis points over 2013 to
13.6%* overcoming approximately
$85 million of foreign currency
headwinds. Our continued focus on
surgical price actions and controlling
expenses allowed us to realize strong
operating leverage in a challenging
business environment.
• Posted record operating margins in
CDIY and Engineered Fastening. For
the year, CDIY’s operating margin rate
expanded 70 basis points to 15.7%*
and Industrial’s operating margin rate
reached 16.0%,* up 140 basis points
versus the prior year.
• Launched mid-price point tool and
storage products for the emerging
markets. This initiative resulted in
the Company posting organic growth
of 5% within the emerging markets
we serve, outpacing the GDP rates
of such markets by 1–2X amid very
challenging conditions. During the
year we launched approximately 1,000
new mid-price point SKUs within
the emerging markets, generating
revenues of over $30 million.
• Generated approximately $140 million
of revenues from Security’s Vertical
Markets initiative. Both orders and
revenues from this initiative, which
is primarily focused on the retail,
financial, education and healthcare
verticals, have exceeded initial
expectations and we expect continued
success in 2015.
• Stabilized our Security Europe
business. Europe’s operating margin
rate improved sequentially each
quarter during 2014 and its fourth
quarter rate increased versus the
prior year. We also announced, in
December, the decision to divest
Security’s Spain and Italy operations,
allowing us to focus on the regions
within Europe that provide the highest
revenue and margin growth potential.
LEVERAGING OUR
WORLDCLASS FRANCHISES
Tools & Storage: Our consumer,
professional and industrial tools
businesses in the aggregate represent
the world’s largest, best-positioned and
most valuable global tools and storage
franchise. Accordingly, we have recently
taken steps to combine our CDIY and IAR
businesses into a unified organization,
which is expected to unlock yet another
generation of cost and revenue synergy
opportunities across the enterprise.
We have gained share each year since
the merger with Black & Decker through
a relentless commitment to innovation,
leveraging our strong brands and
expanding our customer partnerships.
We have successfully capitalized on
many of the growth opportunities
aorded by the Black & Decker merger,
leveraging our brands, geographies
and scale. IAR has also harnessed
electronics, software and RFID technology
to launch a successful foray into advanced
industrial solutions.
Our recent thrust into emerging markets
through a globally coordinated,
combined CDIY/IAR organization with
increased feet on the street and a
host of new products — designed in
* Excluding charges