23 de abril de 2009 / 12:10 / hace 8 años

UPDATE 2-Black & Decker profit slides, cuts '09 view

* Q1 EPS $0.22 ex items

* Q1 revenue $1.07 bln

* Sees 2009 shr $1.50-$1.90 ex items

* Sees Q2 shr $0.35-$0.45

* Shares fall in pre-market trade

(Adds details, share movement)

April 23 (Reuters) - Tool maker Black & Decker Corp BDK.N posted a 93 percent drop in quarterly profit and cut its 2009 outlook as demand weakened across its businesses.

“End-market conditions, particularly in Europe and the automotive industry, continued to deteriorate sharply in the first quarter,” Chief Executive Nolan Archibald said in a statement.

He said the company has intensified efforts to reduce costs.

In January, the company warned of a double-digit drop in organic sales in the first three quarters of 2009 and said it would cut 1,200 jobs.

Black & Decker said its dividend will be reviewed next week by its board at its regular scheduled meeting.

Previously, it had said it might change its dividend policy if the situation worsens. It currently pays a quarterly dividend of 42 cents a share.

The U.S. manufacturer has been hit by the housing slump, which has weakened demand for its power tools, locks and plumbing products.

During the quarter, Black & Decker saw sales at its biggest segments fall rather sharply.

Sales at its power tools and accessories segment fell 23 percent to $803.4 million, while those at its U.S. industrial products group dropped 30 percent. Europe sales fell 30 percent.

For the first quarter ended March 29, net income fell to $4.9 million, or 8 cents a share, from $67.4 million, or $1.08 a share, a year ago.

Excluding items, it earned 22 cents a share. Analysts were expecting 8 cents a share.

Revenue fell 28 percent to $1.07 billion, below Street estimates of $1.16 billion.

WEAK OUTLOOK

Black & Decker expects weak demand trends to continue into the second quarter.

It forecast earnings of 35 cents to 45 cents a share, against Street view of 42 cents a share.

It sees second-quarter sales declining at a rate similar to its first quarter.

For 2009, the company now sees earnings of $1.50 to $1.90 a share, before items, down from its previous forecast of $1.75 to $2.25 a share. It cited higher interest and lower sales volume for the cut.

It expects revenue to drop 20 percent from its fiscal year 2008 sales of $6.09 billion.

Analysts were looking for earnings of $1.82 a share, before special items, on revenue of $5.05 billion, according to Reuters Estimates.

Shares of the company closed at $33.02 Wednesday on the New York Stock Exchange. They were down about 3 percent at $32 before the bell on Thursday. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Anil D‘Silva) ((ananthalakshmi.as@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: ananthalakshmi.as.reuters.com@reuters.net))

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