April 20, 2020

Stanley Black & Decker is committed to keeping you informed regarding our approach to navigating the global impact of the COVID-19 pandemic. Throughout this challenging period, we remain focused on our number one priority of ensuring the safety and health of our employees, while at the same time continuing to serve our customers and maintaining our financial strength and doing our part to help communities and governments mitigate the effects of the virus.

Employee Health & Safety

As it relates to employee health and safety, our top priority, we have implemented a number of critical safety measures that have allowed us to continue to sustain business operations. In the early days of the crisis, many extreme safety actions were taken in our China-based factories, distribution centers and officers. Those actions proved to be highly effective at protecting our employees. That experience, as well as advice from global, national and local health organizations and governments across the globe, guided our actions as we quickly applied this learning across our global operations. Our safety measures meet and often significantly exceed those required.

Examples of our safety measures include:

  • Daily temperature screening of employees and visitors at all facilities, including manufacturing plants, distribution centers and monitoring centers, as well as at our traditional office locations. In addition, visitors are asked a series of health and travel-related questions before being allowed in our facilities;
  • Sending home any employees showing symptomatic signs of illness. In addition, employees are sent home for a 14-day period in cases where there is suspected exposure to a person with COVID-19, and ill employees are not allowed to return until well;
  • Requiring employees and visitors to wear face masks at all of our facilities, or while our employees are out serving customers and/or working on job sites;
  • Mandating virtual work for all employees who are able to work remotely and only returning those employees to office environments as the virus is mitigated in various countries and regions, at a minimum in alignment with local laws and regulations, and often exceeding those standards;
  • Ensuring social distancing within facilities, and in appropriate cases, building physical barriers between workstations, spacing out shifts and break times, and making other changes to typical work environments and processes (such as clocking in) to limit person-to-person interaction and other potential exposures;
  • Restricting all non-essential travel both internationally and within countries, where almost no employees are traveling outside of their local areas, and requiring those employees who do travel for either work or personal reasons to self-quarantine on return;
  • Enhancing all cleaning and sanitization processes, as well as making hand sanitizer, handwashing and other hygiene practices standard and required across our facilities; and
  • Providing our employees with personal protective equipment such as face masks and hand sanitizers for the protection of themselves and their families while in public in their local communities.

To date, our thorough safety measures are proving highly effective, although we recognize that we must continue our vigilance to keep our people safe. These safety measures, along with many others, effectively position the company as different countries and states prepare to lift various forms of stay-at-home and shutdown orders over the coming weeks and months.

Serving Our Customer and Supply Chain Partners

Stanley Black & Decker is qualified as providing essential services around the globe, including by the U.S. government’s Department of Homeland Security and Cybersecurity and Infrastructure Services Agency. We continue to work with governments and municipalities around the globe to ensure that our essential products and services continue to be available to our customers, and we are working with our supply chain partners to ensure the same.

Our manufacturing environment and supply chain have largely maintained operations with very few facility closures, and typically they have been temporary or short-term and government-mandated. As an example, our manufacturing facilities in China were among the first to reopen following the Chinese New Year holiday that ended in early February, and our 30+ manufacturing facilities in the U.S. and greater than 90% of our 100+ across the globe have been in continual operation.

Our teams are supporting those who make the world, especially the frontline caregivers and first responders, manufacturers of medical and healthcare equipment, maintenance personnel at hospitals and other healthcare facilities, and construction workers who are maintaining critical infrastructure and/or in some cases building temporary hospitals and other emergency building needs. They are each giving it their all to help keep us safe, healthy and functioning well, contributing to society in such a significant way. We recognize that the continued operations of our supply chain are a critical component and work with our partners on a day-to-day basis to help enable their ongoing business operations.

Stanley Black & Decker products and services help the people who make the world do their jobs every day, and we appreciate the individual and collective effort of our employees who are on the front lines. Our production and distribution center workers, call center personnel, security technicians and others are coming to work every day to provide the essential tools, equipment, services and solutions that help keep the world moving, and we are working hard to keep their work environment safe.

The company's products and services are being used in existing and new applications that are directly responding to COVID-19 challenges, including portable, rechargeable batteries for respirators; fasteners for hospital beds, ventilators and other healthcare equipment; nurse call management systems for surge hospitals; and tools and storage solutions for a variety of needs.

  • Patient security solutions
  • Staff/office security solutions
  • ICU doors for hospitals
  • Senior living security solutions
  • Protection for large and small businesses
  • Equipment for first responders, such as utility bars, corded and cordless reciprocating saws and blades, and many other tools to use in case of emergency
  • LISTA, DEWALT and VIDMAR storage solutions for military, hospitals and other medical staff
  • Portable power
  • Fire and rescue solutions
  • Fasteners for first responder vehicles, medical and rescue equipment and infrastructure tools and systems
  • Materials for respirators
  • Components for emergency vehicles
  • Pipelines, which are the energy lifelines of almost every activity of everyday life
  • Safe, efficient and economical ways to move natural resources, like crude oil and natural gases, which are the raw material for energy that the world consumes
  • Equipment for first responders, such as grapple buckets and industrial brooms, to help deal with natural disasters
  • Equipment to help solve power outages to neighborhoods and hospitals
  • Equipment to help mine for critical minerals that are needed for electronic components used in equipment like ventilators

We must stay operational to ensure the tools, solutions and services are available to our customers who are providing essential services to keep our world moving.

Maintaining Financial Strength

It’s also important that we ensure the financial strength and stability of our organization during these challenging times. We entered the pandemic in a strong financial position, and we remain strong today. We anticipate that COVID-19-driven demand disruptions will negatively impact our revenue outlook and therefore overall financial results in 2020. As a result, we recently withdrew our previously announced guidance for the year and are taking the necessary actions to protect the business while positioning the company to thrive in the future.

We shared a number of details related to these actions in April, including a comprehensive cost reduction and efficiency program designed to:

  • Adjust our supply chain and manufacturing labor base to match the current demand environment;
  • Substantially reduce indirect spending (currently ~$1.7B annualized);
  • Reduce non-essential staffing levels in a manner that ensures we are prepared for a demand recovery at the appropriate time; and
  • Capture the significant raw material deflation opportunity that has emerged as the economy has weakened.

We recognize that this is a difficult time to make reduced work decisions that impact our employees, but these actions are necessary given the decline in demand we are seeing. Our leadership team is also participating, volunteering a 20% salary reduction, and our Board of Directors has similarly volunteered a 20% reduction in their cash compensation for the remainder of the year which will be donated to the company’s employee relief fund. We are being thoughtful and implementing these actions with compassion and consideration to position the company to capitalize on the recovery as the crisis subsides.

We believe we have sufficient financial flexibility to navigate this volatile period and emerge stronger on the other side. We have stress-tested our business for a wide variety of demand scenarios and have initiated the necessary actions and contingency plans to maintain a solid financial and operational foundation during this unpredictable period. For 177 years, Stanley Black & Decker has thrived through World Wars, Industrial Revolutions, recessions and the Great Depression by focusing on its core strengths of resiliency, agility and excellence.

Supporting Our Employees, Communities and Governments

Also important in this crisis is our mission to assist our governments and communities in mitigating the spread and impact of the virus around the globe. In the face of today’s challenges, we are seeing the best of humankind. People, businesses, governments and NGOs are coming together. As an organization, we are taking steps around the globe to do our part. We know that it is going to take everyone’s efforts to successfully combat the effects of COVID-19. Now is the time for corporations like ours to demonstrate how we can align our resources to help deliver the innovative solutions the world needs right now.

We have established a comprehensive COVID-19 response program in alignment with our program – For Those Who Make The World – using our expertise and innovation, and our financial and operational resources, to be a force for good and make a difference in our communities.

  • To start, we are contributing to COVID-19 relief funds globally, nationally and locally in support of those who have been catastrophically impacted by the virus. As part of this program, we are matching all employee donations 2-for-1 to help our colleagues take action in their local communities around the world;
  • We are also establishing an emergency relief program for our employees, which will provide financial assistance to Stanley Black & Decker employees and their families to help those who have been severely impacted by the virus and need immediate help;
  • Personal protective equipment (PPE) is in high demand and short supply, and we are using our supply chain skills to help acquire critical PPE for distribution to frontline healthcare workers and first responders; and
  • We have formed a global, companywide COVID-19 Community Response Task Force to allocate the company’s time, talents, innovation capabilities and other expertise to help mitigate societal COVID-19 related challenges.

We continue to be inspired by the passion and societal commitment of our employees around the globe. Even when faced with their own personal challenges related to COVID-19, as well as new operational challenges, they continue to find impactful ways to live our purpose and be a force for good.

Our hearts go out to all those enduring the pain and suffering caused by this indiscriminating virus. We are taking all steps reasonably possible to keep our employees safe, ensure the continuity of our business by serving our customers and ensuring our financial strength, and doing our part to help communities and governments combat the impact of the virus. Stanley Black & Decker is for those who make the world, and we continue to support those who are keeping our critical infrastructure running.

Stay safe and stay healthy.

Our Key Priorities

Our response to COVID-19