EX-99.1

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THE STANLEY WORKS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)


	FIRST QUARTER
	2005			2004
*NET SALES*	$	806.3		$	734.8
*COSTS AND EXPENSES*
Cost of sales		517.4			466.9
Selling, general and administrative		185.2			166.7
Interest-net		7.6			7.9
Other-net		9.5			13.9

		719.7			655.4
*EARNINGS FROM CONTINUING OPERATIONS*
*BEFORE INCOME TAXES*		86.6			79.4
Income taxes		19.9			24.4

*NET EARNINGS FROM CONTINUING OPERATIONS*		66.7			55.0

Earnings from discontinued operations (including gain
on disposal of $142.7 million in 2004) before income taxes		(0.1	)		147.9
Income taxes on discontinued operations		—			49.4

*NET EARNINGS FROM DISCONTINUED OPERATIONS*		(0.1	)		98.5
*NET EARNINGS*	$	66.6		$	153.5

*BASIC EARNINGS PER SHARE OF COMMON STOCK*
Continuing operations	$	0.81		$	0.67
Discontinued operations		—			1.21

Total basic earnings per share of common stock	$	0.80		$	1.88
*DILUTED EARNINGS PER SHARE OF COMMON STOCK*
Continuing operations	$	0.78		$	0.66
Discontinued operations		—			1.18

Total diluted earnings per share of common stock	$	0.78		$	1.84
*DIVIDENDS PER SHARE*	$	0.28		$	0.26

*AVERAGE SHARES OUTSTANDING (in thousands)*
Basic		82,822			81,628

Diluted		85,156			83,392

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THE STANLEY WORKS AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)


	APRIL 2, 2005		JANUARY 1, 2005
*ASSETS*
Cash and cash equivalents	$	310.5	$	250.0
Accounts receivable		619.6		582.0
Inventories		432.3		413.4
Other current assets		71.4		82.2
Assets held for sale		0.8		44.3

Total current assets		1,434.6		1,371.9

Property, plant and equipment		396.9		398.9
Goodwill and other intangibles		967.0		928.2
Other assets		154.3		151.6

Total assets	$	2,952.8	$	2,850.6

*LIABILITIES AND SHAREOWNERS’ EQUITY*
Short-term borrowings	$	212.7	$	102.5
Accounts payable		289.1		300.4
Accrued expenses		384.9		415.9

Total current liabilities		886.7		818.8

Long-term debt		474.5		481.8
Other long-term liabilities		324.1		328.7
Shareowners’ equity		1,267.5		1,221.3

Total liabilities and equity	$	2,952.8	$	2,850.6

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THE STANLEY WORKS AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)


	FIRST QUARTER
	2005			2004
*OPERATING ACTIVITIES*
Net earnings	$	66.6		$	153.5
Depreciation and amortization		23.4			24.4
Reclassify taxes paid (proceeds) from sale of businesses to investing activities		10.6			(161.9	)
Changes in working capital and other		(40.0	)		36.1

Net cash provided by operating activities		60.6			52.1
*INVESTING AND FINANCING ACTIVITIES*
Capital and software expenditures		(10.5	)		(8.2	)
Proceeds (taxes paid) from sale of businesses		(10.6	)		161.9
Business acquisitions and asset disposals		(59.7	)		(250.1	)
Cash dividends on common stock		(23.2	)		(21.2	)
Other		103.9			53.6

Net cash used in investing and financing activities		(0.1	)		(64.0	)
Increase(Decrease) in Cash and Cash Equivalents		60.5			(11.9	)
Cash and Cash Equivalents, Beginning of Period		250.0			204.4

Cash and Cash Equivalents, End of Period	$	310.5		$	192.5

Free Cash Flow Computation
Operating Cash Flow	$	60.6		$	52.1
Less: Capital and software expenditures		(10.5	)		(8.2	)

Free Cash Flow from Operations (before dividends)	$	50.1		$	43.9

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THE STANLEY WORKS AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)