dewalt tools : Black & Decker Reports

The Black & Decker Corporation (NYSE: BDK) today announced that net earnings from continuing operations for the first quarter of 2006 were $113.1 million or $1.45 per diluted share. This represents an 11% increase over $1.31 per diluted share in the first quarter of 2005, excluding a favorable insurance settlement. Reported net earnings from continuing operations were $1.74 per diluted share for the first quarter of 2005.

Sales from continuing operations increased 1% for the quarter to a record $1.5 billion, following a 15% organic sales increase in the first quarter of 2005. The March acquisition of Vector Products, Inc. contributed 1% to sales in the quarter, effectively offsetting the impact of the FLEX business divestiture in late 2005. Foreign currency translation had a negative 2% impact on sales.

Nolan D. Archibald, Chairman and Chief Executive Officer, commented, "Black & Decker increased sales and operating income in all three business segments, despite commodity cost inflation and a particularly challenging comparison to prior-year results. We continue to benefit from cost reduction efforts and effective use of our strong free cash flow. By beating our sales target and increasing operating margin 60 basis points, we had solid growth in operating profits and exceeded our EPS guidance.

"Sales in the Power Tools and Accessories segment rose 2% for the quarter. Outstanding sales in Europe and Latin America enabled the segment to post an increase on top of 17% organic sales growth in the same period of 2005. European sales grew solidly, despite the divestiture of FLEX, due to the strength of DEWALT(R) tools and lawn and garden products such as the new Alligator(TM) lopper. The U.S. Industrial Products Group, which drove the segment's exceptional performance in 2005, increased sales slightly this quarter. This group benefited from DEWALT's continued success, particularly in the independent channel, and additional listings of Porter-Cable and Delta woodworking tools. Sales in the U.S. Consumer Products Group decreased modestly, as lower sales in the pressure washer and lawn and garden lines were nearly offset by gains in Black & Decker(R) consumer tools and the acquisition of Vector. Operating margin for the Power Tools and Accessories segment increased 30 basis points to 12.3% due to international margin improvements.


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