Stanley Works Cuts 2,000 Positions; Closes Three Facilities
The Stanley Works announces that, due to severe weakness in the global economy, it has experienced rapidly deteriorating business conditions in its Construction/Do-It-Yourself (CDIY) and Industrial segments during the quarter. Further, the recent sudden strengthening of the U.S. dollar against major currencies has exerted additional downward pressure on fourth quarter earnings. Consequently, the company now expects full year 2008 earnings per share from continuing operations before fourth quarter charges to be between $3.30 and $3.40, approximately $0.35 to $0.45 lower than previously indicated. Full year 2008 free cash flow is expected to be approximately $450 million.
Given the current variability of economic factors affecting revenue, earnings and cash flow, management has taken proactive steps to prepare for a prolonged and deeper downturn. This will ensure that the company is positioned for success regardless of when a recovery may occur. These actions, the majority of which will be initiated this month, include the elimination of approximately 2,000 positions (10 percent of the current employee base), the closure of three manufacturing facilities and the elimination of certain layers of management.
Given the current variability of economic factors affecting revenue, earnings and cash flow, management has taken proactive steps to prepare for a prolonged and deeper downturn. This will ensure that the company is positioned for success regardless of when a recovery may occur. These actions, the majority of which will be initiated this month, include the elimination of approximately 2,000 positions (10 percent of the current employee base), the closure of three manufacturing facilities and the elimination of certain layers of management.