Nov. 5, 2009 (PR Newswire) --

NEW BRITAIN, Conn., Nov. 5 /PRNewswire-FirstCall/ -- The Stanley Works (NYSE: SWK) today updated its full year 2009 guidance to reflect one time costs associated with its proposed merger with The Black & Decker Corporation (NYSE: BDK), which was announced November 2, 2009.

The Company expects to record a one time charge in the fourth quarter of 2009 of $18.0 million, reflecting fees and expenses related to the Black & Decker transaction, the majority of which are non tax-deductible.

As a result, the Company is revising its previous full year 2009 earnings per share guidance of $2.84-$2.94 per share to $2.61-$2.71 per share. Management continues to expect gross margins of 40% and free cash flow to be in excess of $300 million for the full year.

The revision in the Company's guidance does not reflect any change in its operational outlook.

The Stanley Works, an S&P 500 company, is a diversified worldwide supplier of tools and engineered solutions for professional, industrial, construction and do-it-yourself use, and security solutions for commercial applications. More information about The Stanley Works can be found at http://www.stanleyworks.com and www.stanleyblackanddecker.com.

Free cash flow is defined as cash flow from operations less capital and software expenditures. Free cash flow does not reflect, among other things, deductions for mandatory debt service, other borrowing activity, discretionary dividends on the company's common stock and acquisitions. The company believes this an important measure of its liquidity, of its ability to fund future growth and to provide a return to the shareowners.

CAUTIONARY STATEMENTS

Under the Private Securities Litigation Reform Act of 1995

Statements in this press release that are not historical, including but not limited to those regarding the Company's ability to: (i) generate full year 2009 EPS in the range of $2.61 - 2.71 per fully diluted share; (ii) generate free cash flow to exceed $300 million for 2009; and (iii) achieve gross margins of 40% (collectively, the "Results"); are "forward looking statements" and subject to risk and uncertainty.

The Company's ability to deliver the results as described above is based on current expectations and involves inherent risks and uncertainties, including factors listed below and other factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations.