Power tool maker Black & Decker Corp. said that restructuring savings and higher sales volume drove second-quarter earnings. Quarterly earnings rose to U.S. $121.6 million, or $1.50 per share, from $75.7 million, or $0.97 cents per share, a year ago. Sales rose to $1.3 billion from $1.09 billion a year ago.
Second-quarter sales in the power tools and accessories segment rose 11 percent, as U.S. sales of Dewalt professional products increased at a double-digit rate. Sales of Black & Decker consumer products also increased at a double-digit rate, led by lasers, cordless drills, and lawn and garden products. Sales in the hardware and home improvement segment climbed 10 percent, excluding the acquisition of Baldwin Hardware Corp. and Weiser Lock Corp.
The company is forecasting double-digit sales growth, including currency and acquisitions, for the third quarter and full year. Third-quarter and full-year earnings from continuing operations are expected to range between $1.25 and $1.30 per share and $5.05 to $5.15 per share, respectively.
In addition, the company also announced that it agreed to buy Pentair Inc.'s tools group for an estimated $775 million in cash. The tools group, with 2003 sales of $1.08 billion, includes the Porter-Cable, Delta, DeVilbiss Air Power, Oldham Saw, and Flex businesses. Black & Decker said it expects to close the transaction later this year. The company said the acquisition will save $65 million a year by the end of 2007.
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