Oct. 22--The Stanley Works' third-quarter sales and profits fell by double-digit percentages, with the worst results for the New Britain toolmaker's industrial division.

Citing volume declines amid weak demand in the construction downturn, Stanley reported Wednesday that operating profits fell 14 percent from a year ago, to $135 million, on a sales drop of 16 percent, to $936 million.

Earnings per share from continuing operations fell 21 percent, to 77 cents.

Despite a 20 percent decline in net income from continuing operations, the company's stock price rose 2 percent, closing Wednesday at $47.25, its highest price in more than a year.

The company's security division, which provides equipment and services, was by far its best performer, with an operating profit increase of 12 percent, to $84 million, on a 3 percent sales increase, to $403 million. That division, the company's largest, benefited from acquisitions.

Stanley reported steep sales and profit declines for its industrial division, which makes heavy tools and related products. Profits there fell 53 percent, to 19 million, on a 31 percent sales decline, to $205 million. At the hand tools division, profits fell 11 percent, to $48 million, on a sales decline of 23 percent, to $328 million.

Stanley increased its full-year earnings guidance to a range of $2.84 to $2.94, up from $2.50 to $2.60, based on a gain from a second-quarter debt reduction.

-----

To see more of The Hartford Courant, or to subscribe to the newspaper, go to http://www.courant.com/.

Copyright (c) 2009, The Hartford Courant, Conn.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:SWK,

A service of YellowBrix, Inc.