Black & Decker doubles profits in 2nd quarter

July 28, 1993|By Kim Clark | Kim Clark,Staff Writer

Lower tax rates and interest costs helped Black & Decker Corp. double quarterly profits over last year, the Towson-based power tool maker said yesterday.

The company said it earned $19.5 million in its second fiscal quarter, or 20 cents a share, up from $10 million, or 9 cents a share, a year ago.

That drastic improvement in profitability came despite a slow, 2 percent sales increase, which the company attributed to sluggish overseas economies. In Europe, for example, Black & ++ Decker's sales of consumer goods were flat, though the company gained market share. And Chairman Nolan D. Archibald said he did not expect overseas economies to improve in 1993.

In a statement accompanying the earnings, he said power tool, lock and household product sales in the U.S. jumped by more than 10 percent.

But the True Temper Sports division, which makes golf club shafts, has seen a dip in sales and profit margins, Mr. Archibald added.

Contributing to the improved bottom line: a debt restructuring, reached last fall, that reduced interest rates by a quarter of a percentage point on Black & Decker's approximately $2.3 billion in debt. At the time, the company said it would save about $10 million a year.

Black and Decker said its overall tax rate fell this year because more of its profits came from the United States.

The company attributed a $1.7 million drop in operating income -- to $75.6 million -- to costs associated with launching or expanding product lines such as its DeWalt and Quantam power tools.

Black & Decker Corp.

.. .. .. .. .. .. .. .. ..Ticker .. .. .. .. .. ..Yesterday's

.. .. .. .. .. .. .. .. ..Symbol .. .. .. .. .. ..Cls. ..Chg.

.. .. .. .. .. .. .. .. .. BDK .. .. .. .. .. .. .21 7/8 .. + 1/4

Period ended

July 4 .. .. .. .. .. 2nd qtr... .. .Year ago .. .. ..Chg.

Revenue .. .. .. .. $1,155,900 .. ..$1,132,800 .. .. +2.0%

Net Income .. .. .. ...$19,500 .. .. ..$10,000 .. ..+95.0%

Primary EPS .. .. .. .. .$0.20 .. .. .. .$0.09 .. .+122.2%

.. .. .. .. .. .. .. ...6 mos. .. .. .Year ago .. .. .Chg.

Revenue .. .. .. .. ..$2,255,700 .. .$2,199,300 .. ..+2.6%

Net Income .. .. .. .. ..$33,300 .. ..$(220,700).. .. ..--

Primary EPS .. .. .. .. ..$0.33 .. .. ..$(3.27) .. .. ..--

Figures in thousands (except per share data.)

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