NEW BRITAIN, Conn. – The newly merged Stanley Black & Decker has announced first quarter 2010 financial results. On March 12, Stanley completed its merger with the Black & Decker Corp. The company’s 2010 first quarter financials are inclusive of Black & Decker’s operations for the period from March 13 through April 3, 2010 (the “stub period”).

Excluding one-time charges related primarily to the merger, the company reported first quarter diluted EPS of 70 cents, which includes a negative 4 cent impact due to the acquisition of ADT France.

Net sales for the period were $1.3 billion, up 38 percent versus prior year due to the inclusion of Black & Decker’s results for the stub period (+36 percent), currency (+4 percent), acquisitions (+1 percent) and unit volume (-3 percent).

Stanley Black & Decker President and CEO John Lundgren, commented, “Since the close of our merger with Black & Decker, the execution of our integration plans has progressed smoothly and we are pleased with our initial success in realizing the operating and financial benefits that made this combination so compelling. We continue to further develop our cost synergy plans and remain confident in meeting or exceeding our original estimate of $350 million in cost synergies. Given our track record of successful integrations, the detailed planning that went into our combination with Black & Decker will ensure that our businesses and employees fit together seamlessly, while we remain focused on customer service, productivity and top line growth throughout the company.”

Executive Vice President and Chief Operating Officer James Loree, commented, “The operating margin increases achieved during the first quarter – specifically within our hand tool, power tool and industrial businesses – illustrate the strong operating leverage potential of both legacy companies as a result of actions taken over the past two years. As expected, we have not yet begun to fully see the benefits of a recovery in our Security segment, due to its less volatile and longer-cycle nature. Looking forward, we have plans to continue to further strengthen brand support while releasing some exciting new hand and power tool products in 2010 and 2011 that should help increase our market share in these core franchises. We have also begun to lay the groundwork for implementing SFS across the Black & Decker businesses which we expect will continue to improve supply chain performance and result in working capital efficiencies in the coming years. This will enhance the combined company’s cash flow generation potential and increase the opportunity for reinvestment in growth and diversification as we enjoy the benefits of the eventual cyclical recovery.”

The company is updating its 2010 guidance to reflect the merger with Black & Decker and expects 2010 EPS, excluding one-time charges, to be in the range of $3.10 to $3.30.

Donald Allan Jr., senior vice president and CFO, commented, “Stanley Black & Decker is well-positioned to continue to benefit from the improving macro environment and we were encouraged to see restocking activity accelerate throughout the quarter, particularly in the industrial channels. While we still do not expect a dramatic turnaround in the housing sector in 2010, we are confident our hand and power tool businesses will grow mid-single digits this year. We expect operating margin expansion for the entire company in 2010 compared to 2009 combined pro forma levels as we continue to see the benefits of the integration and our operating leverage.”