UPDATE 3-Black & Decker Q2 profit beats Street, raises FY view

viernes 24 de julio de 2009 18:25 CEST

* Q2 EPS $0.63, Street view of $0.37

* Raises FY shr view to $1.65-$2, ex items

* Sees no significant improvement in end markets

* Shares rise as much as 12 pct (Recasts; adds details from conference call, analyst comment; updates share movement)

BANGALORE, July 24 (Reuters) - Tool maker Black & Decker Corp BDK.N raised its 2009 earnings outlook on strong second-quarter results that were helped by cost cuts and better margins, sending its shares up 12 percent.

However, the company, which also makes home improvement products, does not anticipate a significant improvement in end markets during the rest of the year, even as it said some metrics, such as U.S. housing starts and global automotive production, seemed to be bottoming.

Black & Decker, which said its end markets remained extremely weak in the second quarter, forecast a weak third quarter and also slightly widened its 2009 sales decline outlook.

Wall Street Strategies analyst Brian Sozzi said Black & Decker's end markets were still in trouble and that sales trends will continue to be challenging.

Longbow Research analyst David MacGregor does not expect to see any signs of stabilization in the company's end markets during the second half of the year.   Continuación...