Power tool maker The Black & Decker Corporation announced net earnings from continuing operations for the first quarter of 2006 increased 11 percent to U.S. $113.1 million, or $1.45 per diluted share, compared to $1.74 in the first quarter of 2005.
Sales from continuing operations increased 1 percent for the quarter to a record $1.5 billion, following a 15-percent organic-sales increase in the first quarter of 2005.
The company reported sales in the Power Tools and Accessories segment increased 2 percent for the quarter, with sales in Europe and Latin America enabling the segment to post an increase on top of 17 percent organic sales growth in the same period of 2005.
European sales grew solidly, despite the divestiture of Flex, due to the strength of Dewalt(R) tools and lawn and garden products such as the new Alligator(TM) lopper. The U.S. Industrial Products Group, which drove the segment's performance in 2005, increased sales slightly this quarter. Sales in the U.S. Consumer Products Group decreased modestly, as lower sales in the pressure washer and lawn and garden lines were nearly offset by gains in Black & Decker(R) consumer tools and the acquisition of Vector.
"Looking ahead, we continue to expect solid growth in 2006," Nolan D. Archibald, chairman and CEO, said. "We remain confident that Dewalt's 36-V line of lithium-ion tools, which arrives in stores later this quarter, will reinforce our cordless leadership position. Combined with the Vector acquisition, this launch and other new products should help us grow sales at a mid single-digit rate for the second quarter and full year."
Black & Decker said it expects diluted earnings per share (EPS) from continuing operations in the range of $7.30 to $7.45. For the second quarter, it expects diluted EPS from continuing operations in the range of $1.95 to $2.00. The company said this represents EPS growth of 8 percent to 11 percent for the full year and 6 percent to 9 percent for the second quarter.
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