Black & Decker 2015 Annual Report Download - page 4

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STANLEY BLACK & DECKER  ANNUAL REPORT02
2015 Business Highlights
• Generated organic growth of %. Tools & Storage organic growth was
%, with above-market growth in all regions — North America (+%),
Europe (+%) and Emerging Markets (+%) — as share gains were powered
by innovative new product introductions, expanded retail partnerships,
e-commerce initiatives, commercial investments in developed markets,
and the success of our mid-price point products in emerging markets.
Engineered Fastening achieved % organic growth, led by its automotive
business and within Security, Europe posted % organic growth — its
best performance in years — while our North America mechanical locks
business grew % organically
• Improved the Company’s operating margin rate by  basis points over
 to .%, overcoming significant foreign currency headwinds.
Our focus on surgical price actions and cost control combined with
commodity deflation allowed us to realize strong operating leverage
in a challenging environment
• Posted a second consecutive year of record operating margin rates in
Tools & Storage and Engineered Fastening. The Tools & Storage operating
margin rate expanded  basis points to .% and Engineered Fastening’s
rate ended in the high teens, up  basis points
• Continued the successful release of mid-price point products across the
emerging markets. This initiative, now in its second year, helped deliver
organic growth in the emerging markets, most notably in Latin America
(+ %), in the face of dicult conditions in many of the markets we
serve. During the year we launched  new power tool models and
significantly expanded the volume of our STANLEY branded oerings
within these markets
• Improved the Security business. The operating process enhancements
and leadership changes we made in our Security Europe business
generated improved operating results: % organic growth for the year
with five consecutive quarters of flat or positive organic growth, year-
over-year operating margin rate improvement each quarter with the rate
approaching % in the fourth quarter, strong orders, a healthy backlog,
and attrition well within our targeted range of %–%. Within North
America, our eorts to improve field eciency and upgrade operational
talent are taking hold, and we ended the year with an improving margin
trend in our commercial electronic security business along with strong
orders and a growing backlog. We also reinvigorated our mechanical
lock business, which grew mid-single digit organically and improved its
operating margin rate by over  basis points
2015 SUMMARY
OF RESULTS
• Total revenues were $11.2 billion,
with organic growth of 6%
• Operating margin rate increased
to 14.2%, a 90 basis point increase
in the face of approximately
$220 million of foreign currency
headwinds
• Earnings per share increased
10% to a record $5.92
• Free cash flow totaled $871 million,
enabling our 48th consecutive
annual dividend increase
• Working capital turns were 9.2X,
continuing our industry-leading
performance