Power tool manufacturer The Black & Decker Corporation announced that, due to continuing strong sales, especially in its North American Power Tools and Accessories business, it expects to report a 15-percent sales growth for the first quarter of 2005, excluding currency translation and acquisitions.
Including currency translation and acquisitions, it expects to report sales growth of 39 percent.
As a result, the company said it expects that first-quarter diluted earnings per share from continuing operations will be in the range of U.S. $1.33 to $1.35, excluding the favorable impact of an insurance settlement.
This represents an increase from previous guidance of $1.05 to $1.10 and versus $0.93 in the first quarter of 2004. Black & Decker expects that the increase in earnings guidance for the first quarter will increase full-year results by a similar amount and is comfortable with securities analysts' mean EPS estimate of $1.67 for the second quarter.
The company received a cash payment of approximately $55 million in March 2005 resulting from settlement of environmental and product liability coverage litigation with an insurer.
The positive impact of this settlement on first-quarter diluted earnings per share will be approximately $0.43. Including the insurance settlement, Black & Decker expects first-quarter diluted earnings per share from continuing operations to be in the range of $1.76 to $1.78.
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