February 3, 2005

DeWalt tool sales power Black & Decker’s profit

TOWSON, Md.

The Black & Decker Corp., the biggest maker of power tools and accessories in the United States, has posted a 36 per cent jump in fourth-quarter profit, led by strong sales of its DeWalt and Black & Decker brands.

Towson-based Black & Decker said it earned $135.3 million (all funds U.S.), or $1.62 a share, for the latest quarter, compared with $99.5 million, or $1.27 a share, a year earlier.

Earnings from continuing operations jumped 39 per cent to $133.7 million, or $1.60 a share. The results beat the average estimate of analysts polled by Thomson First Call for fourth-quarter earnings, excluding items, of $1.57 a share.

Sales rose 29 per cent in the latest quarter to $1.73 billion from $1.34 billion, helped by the acquisitions of Baldwin Hardware and Weiser Lock from Masco Corp. in late 2003 and Pentair Inc.’s tools group in late 2004.

Sales rose 33 per cent in the power tools and accessories group for the quarter, or seven per cent excluding acquisitions.

The DeWalt and Black & Decker divisions saw sales grow at a percentage rate that was in the high single digits, the company said.

Sales in the hardware and home improvement operation rose 10 per cent.

Sales rose 11 per cent in the fastening and assembly systems group, including a three per cent bump from the purchase of MasterFix in the first quarter.

For the full year, net income came to $456 million, or $5.59 a share, compared with $293 million, or $3.75 a share, for 2003. Full-year sales rose to $5.4 billion from $4.48 billion. The company expects the acquisition of Pentair’s tools group will add 40 cents a share to earnings for 2005.

The Associated Press

Print | Email | Comment