The ratings on Stanley Works Co. reflect strong market positions in a wide array of tools and hardware products for the do-it-yourself, industrial, professional, and construction markets; good geographic diversity; competitive cost structure; and strong cash flows. These factors more than offset cyclical demand, price erosion in the global tools industry, and moderate acquisition risks. The New Britain, Conn.-based company's major business portfolio transformation has resulted in a more balanced mix of end markets, with each of its three segments now representing about one-third of sales. Stanley has good product diversity with tools, storage units, and fastening products used in construction and do-it-yourself projects; industrial and automotive repair tools; and mechanical and electronic security access products, systems integration, and monitoring.
