The ratings reflect The Stanley Works' above-average business position as a leading producer of a wide array of tools and hardware products for the do-it-yourself, construction, and industrial markets, and its moderate financial policies. The New Britain, Conn.- based company's business profile is supported by high brand-name recognition, significant global market presence, and end-user diversity, including substantial sales to the repair-and-remodel markets. These factors should mitigate earnings cyclicality. Greater focus on new products, brand development, product line extensions, and strategic alliances with home centers and mass merchants, should promote long-term sales growth. Nonetheless, the increasing share of tools distributed through home centers and mass merchants is heightening customer concentration risks and subjecting the company to mounting servicing and price demands.
