Shares of power tool maker Black & Decker Corp. increased after Bear Stearns raised the company's earnings estimates, citing a more favorable near-term outlook. The firm raised its fourth-quarter profit estimate to U.S. $1.35 from $1.28. It now expects 2003 earnings of $4.03, up from $3.96. The company's stock was up $1.77, or 3.65 percent, to $50.26, above its year high of $49.90 hit on Dec. 19, 2003.
Bear Stearns raised its fourth-quarter and 2003 earnings estimates, saying Black & Decker could benefit from weakness in the U.S. dollar and a stronger euro, cost savings from restructuring, and solid power-tool demand at retailers Home Depot Inc. and Lowe's Co., which accounted for 30 percent of Black & Decker's sales.
The firm also said it believed Black & Decker's DeWalt power tool line has not lost significant shelf space to the Ridgid line introduced last year at Home Depot, which is the exclusive retailer of the line. (Reuters)
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