Black & Decker Corp. reported an 18% drop in third-quarter earnings amid a slowdown in sales, and gave a weak outlook for the fourth quarter. The company earned US$85.8 million for the quarter, compared with $104.6 million a year earlier. The quarter included a $15.6 million pre-tax restructuring charge.
Revenue fell by 4% to $1.57 billion. Sales were boosted 3% by foreign currency translation.
Nolan Archibald, the company's chief executive, said the third quarter was "very difficult," but sales met expectations despite weaker demand in the U.S. and Western Europe. Sales of power tools and accessories fell by 6%. U.S. and European sales for the segment weakened, but Latin American sales rose in double-digits. Canada and Asia also increased sales. Sales in hardware and home improvement were down 13% in the quarter ,while fastening and assembly systems fell by 2%.
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