Black & Decker second-quarter profit falls 18 pct

Tag : Power Tools
Black & Decker Corp reported Friday thatquarterly profit fell less than expected as a favorable tax ratehelped offset effects of the severe U.S. housing slump, which hassliced demand for its power tools, locks and plumbing products.
The U.S. manufacturer cut its full-year profit forecast, warning itis starting to see a slowdown in demand from Western Europe andnoting that materials costs are rising faster than expected.
Net income in the second quarter fell 18.1 percent to $96.7million, or $1.58 a diluted share, from $118 million, or $1.75 pershare, a year earlier. The Towson, Maryland-based company noted thelatest profit included 12 cents a share resulted from a lower taxrate.
Analysts, on average, expected profit of $1.41 per share, accordingto Reuters Estimates.
Sales were down 3.4 percent to $1.64 billion.
"Weak demand in the U.S. and slowing conditions in parts of WesternEurope ... resulted in lower sales and earnings," said NolanArchibald, chairman and chief executive, in a statement.
It now looks for full-year profit of $5.25 to $5.45 per shareversus its April forecast of $5.25 to $5.65. Analysts, on average,expect $5.34 per share, according to Reuters Estimates.
Black & Decker shares are down about 14 percent so far this year,in line with the slide in the Dow Jones U.S. durable householdproducts index.