Stanley Works (NYSE:SWK) continued its recent growth through acquisitions and increased sales, posting another quarter of solid results. For the second quarter, it generated net income of $66 million, or $0.78 per share, which fell at the upper end of its previous guidance and 11.9% higher than the $59 million it earned a year ago.

Sales climbed 9% higher to $824 million, with organic sales growth (excluding acquisitions) of 5%. Sales were up for each of the company's business units. Industrial tools sales increased 8%, with double-digit organic growth for many of its tools. Revenues for its Security Solutions business jumped 20%, attributed mostly to acquisitions -- organic growth was a meager 1%. Its Consumer Products sales recovered from last quarter's flat sales, increasing 4% as large home centers like Home Depot (NYSE:HD), Lowe's (NYSE:LOW), and Wal-Mart (NYSE:WMT) greatly increased purchases of hand tools.

Stanley Works' gross profits from continuing operations powered ahead 10.6% to $302 million compared with the same period last year. That represents 36.7% of sales, creeping up 50 basis points compared to last year. The company credited the gain to increased volume and higher margins in its Security Solutions business.

The company is doing a nice job of integrating the lower-margin businesses it recently acquired for its Security Solutions unit. After falling to 13% last quarter because of the acquisition of lower-margin businesses, its operating margins bounced back to 15.6% in the most recent quarter. That quick turnaround bodes well for the company as it continues to expand.

Stanley Works also maintains a healthy supply of cash despite its plethora of acquisitions. At the end of the quarter, it had free cash flow (you gotta love a company that calculates this figure separately) of $61 million, a 22% decline over the same period last year. It expects approximately $300 million in free cash flow for the year.

The company projects full-year earnings of $3.20 to $3.30 per diluted share, which would represent an increase of 12% to 16% over last year's earnings.

What I like about Stanley Works is its knack for successfully acquiring companies and integrating them into its core business. The company realizes that it must continue to expand in order to remain on top, but it can't simply acquire businesses and expect results. Continued flexibility will ensure that the new business will achieve the same standard of results that investors have come to expect. Additionally, Stanley Works continues to maintain decent organic growth. Combine those factors with the seemingly never-ending growth in the housing market, and the company should continue to drive its performance hammer.

Fool contributor Mike Cianciolo owns some tools from Stanley Works, but he's usually happy just to walk away from a project uninjured and doesn't own shares of any company in this article.