The Black & Decker Corp. said second-quarter earnings rose about 15 percent as a restructuring cut costs despite weaker sales. The maker of tools and other home improvement products had net income of U.S. $75.7 million, or $0.97 a share, compared with $66.1 million, or $0.81 a share, a year ago. Sales fell to $1.12 billion from $1.13 billion. Analysts were expecting sales of $1.15 billion.
Earlier this month, Parker/Hunter research director Lawrence Horan attributed the second-quarter sales slump at Black & Decker to the weakness in its industrial-fastener business and the loss of shelf space for faucets at Home Depot Inc. Black & Decker's U.S. sales of consumer and professional products each decreased at a high-single-digit percentage rate, as customers lowered their order levels to reduce inventory.
Black & Decker said it doesn't anticipate a sales improvement anytime soon, anticipating low-single-digit percentage sales declines for the third quarter and all of 2003.
In April, the company said it expected full-year 2003 sales to be flat with the $4.39 billion recorded in all of 2002. Under its restructuring plan, Black & Decker ceased production at both the Georgia Kwikset plant and the Maryland power tools plant. It said it expects savings of $35 million in 2003 and $40 million in 2004, which, combined with $25 million in 2002, will yield $100 million of total annualized savings. (Reuters)
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