Stanley releases 4Q results: Not too shabby
Here are the highlights from Stanley's 4Q numbers, released yesterday: Their "Security" segment did $410m, with $75m of that profit. Nice margin of 18.4 percent. When you consider Stanley paid $545m to acquire HSM, and, conservatively, half of that profit is directly attributable to the HSM platform, it seems more and more like a good buy. In 2007 and 2008, since the buy, the security business has delivered $239.9m and $268.7m in profit, respectively, on sales of $1.4b and $1.49b (note the "b"s). In fact, security is the company's shining star. John F. Lundgren, Chairman and Chief Executive Officer, commented: "While the fourth quarter was characterized by steep revenue and margin declines in CDIY and Industrial, the Security segment continued on its growth trajectory, providing welcome stability to overall company operations. We feel that we are taking appropriate actions to protect our cash flow and earnings base while positioning the company for future growth. We are operating from a position of strength in the most difficult environment in memory." You've got to hand it to Stanley leadership. They made an aggressive play into security and are being handsomely rewarded for it.