Black & Decker reports 6% sales decline
The Black & Decker Corporation announced fourth-quarter sales decreased 6% for the quarter to $1.3 billion. For the full year, sales decreased 22% to $4.8 billion.
Net earnings for the quarter were $33.9 million or 55 cents per diluted share, versus $43.7 million or 72 cents per diluted share for the fourth quarter of 2008. Fourth-quarter net earnings reflect $58.8 million of pre-tax expenses related to the proposed merger with The Stanley Works in 2009 and a $20.8 million pre-tax restructuring charge in 2008.
For the full year 2009, net earnings were $132.5 million or $2.17 per diluted share, versus $293.6 million or $4.77 per diluted share for 2008.
"Sales in the quarter exceeded our expectations in all three of our business segments. While our end markets generally remain difficult, we benefited from improved economic activity in selected regions and businesses, as well as inventory restocking in some channels," said Nolan D. Archibald, chairman and CEO. "While 2009 was a very challenging year, we delivered profits well above our initial forecast and very strong net cash generation. As we prepare to merge with The Stanley Works, Black & Decker is well-positioned to take advantage of the economic recovery and to achieve profitable growth.
Sales in the Power Tools and Accessories segment decreased 11% for the quarter. In the U.S. Industrial Products Group, sales declined approximately 20%, reflecting continued weakness in both residential and commercial construction. Sales decreased 2% for the quarter in the Fastening and Assembly Systems segment, which showed progress from earlier in the year due to improved auto production. While demand remained weak in Japan, other key regions posted roughly flat sales this quarter.
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