Black & Decker 2Q profit drops 18 percent

Tag : Power Tools

Power tools maker Black & Decker Corp. said Friday itssecond-quarter earnings declined amid a softening U.S. economy, butstill beat analyst expectations.
Profit declined about 18 percent to $96.7 million, or $1.58 pershare, from $118 million, or $1.75 per share, in the same quarter ayear earlier. A favorable tax rate contributed 12 cents to the mostrecent quarter, the company said.
Sales declined 3 percent to $1.64 billion from $1.7 billion.
Analysts polled by Thomson Financial expected earnings of $1.42 pershare and sales of $1.6 billion.
Sales in the company's power tools and accessories segment declined10 percent, and revenue declined more than 25 percent in its U.S.consumer products group.
Black & Decker said weak demand in the U.S. and slowingconditions in parts of Western Europe caused sales and earnings todecline.
"Black & Decker's operating performance this quarter metour expectations, despite ongoing challenges in key markets andrising commodity costs," Chief Executive Nolan D. Archibaldsaid in a statement.