"We are a company that believe in maintaining a conservativefinancial posture," says James M. Loree, EVP and CFO of StanleyWorks, in a statement. "In light of the extremely poor economicbackdrop, it is prudent to continue to take actions to align ourcost structure with both the current and potentially worseningbusiness environment in 2009."

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Initially, Stanley had predicted earnings per share forcontinuing operations before Q4 charges to be $0.35 to $0.45 higherthan where the company now sees its earnings, somewhere between$3.30 to $3.40 per share. The release from Stanley points to the"rapidly deteriorating business conditions" to its Construction/DIYand Industrial segments over the fourth quarter. The fourth quarterunit volumes are currently projected to be from 12% to 14%, whichStanley notes in their release, is roughly 6% to 8% lower thanexpected.

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Loree in a statement says, "The decline in unit volume that[Stanley has] observed in the first two months of the fourthquarter, following a 7% decline in the third quarter, has beendramatic. Across nearly all of our businesses, with the exceptionof our Security segment, [Stanley has] seen a sizable negativetrend that continues to track the downward movement of the overalleconomy." He continues to say that the lay-offs and facilityclosings will "position the company for growth" as the economyimproves in the future.

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With a caveat that the market is still too volatile for exactpredictions, Stanley estimates that the 2009 operating marginbenefit of the lay-offs and closings--along with cost actionsimplemented in mid-year 2008--will result in $195 million. Thecompany predicts that the downturn, however will cause lowerrevenues for 2009.

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Stanley is still finalizing which facilities will be closed, andis not at liberty to discuss the process of evaluating, nor fromwhere the 2,000 employees will be terminated.

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