Earnings rise 31% for B&D

February 23, 1994|By Ross Hetrick | Ross Hetrick,Sun Staff Writer

Helped by cost-cutting and an improved domestic market, Black & Decker Corp. said yesterday that its fourth-quarter earnings rose 31 percent, excluding the effect of certain one-time events.

While the Towson-based power tool and appliance maker suffered a decline in sales in Europe and Japan, the impact was more than offset by increases in the United States and Canada, the company said. Revenues increased 7 percent during the quarter, compared with a year earlier.

Sales of power tools, household products and Kwikset locks in the United States and Canada "achieved double-digit sales gains for the year and grew substantially faster than their respective markets," Nolan D. Archibald, the company's chairman and chief executive, said in a statement.

The company reported income of $42.3 million in the fourth quarter, or 47 cents a share, in contrast to a loss of $122.8 million, or $1.51 a share, in the same period a year earlier. The 1992 quarter included a charge to earnings of $20.6 million, or 25 cents a share, for the early extinguishment of debt.

For the full year, Black & Decker earned $66 million, or 65 cents a share, in contrast to a loss of $333.6 million, or $4.52 a share in 1992. Last year's earnings were reduced by $29.2 million to reflect the impact of a change in accounting rules. The 1992 results included a $260 million reduction in earnings stemming from a number of one-time events.

Black & Decker also declared its regular quarterly dividend of 10 cents a share, payable April 1 to stockholders of record on March 18.

Yesterday's earnings announcement had little effect on the stock, which closed unchanged at $20.375 a share.

"The story on Black & Decker has been that they are gradually getting there, but it's taking time," said John J. Rezai, an analyst for the Chapman Co., a Baltimore investment banking firm.

Because of interest expenses associated with the $2.1 billion debt remaining from the 1989 purchase of the Emhart Corp., which amounted to $172 million last year, Black & Decker is limited in the amount it can spend on new facilities, Mr. Rezai said.

Additionally, Black & Decker would be paying higher interest costs in future months if interest rates start to climb again as many analysts expect, he said.

Black & Decker Corp.

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

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

.. .. .. .. .. .. .. .. .. .. .BDK .. .. ...20 3/8 .. .. ...unch.

Period ended

12/31/93 .. .. ... .. .. ..4th qtr. .. ...Year ago .. ..Chg.

Revenue .. .. .. .. .. ..$1,436,800 .. ..$1,394,500 ...+3.0%

Net Income .. .. .. .. .. ..$42,300 .. ..$(122,800)*... ----

Primary EPS .. .. .. .. .. ...$0.47 .. .. .$(1.51) * ...----

.. .. .. .. .. .. .. .. .. .12 mos. .. ...Year ago .. ..Chg.

Revenue .. .. .. .. .. ..$4,882,200 .. ..$4,779,600 ...+2.1%

Net Income .. .. .. .. ..$66,000 ** .. .$(333,600) ***. ----

Primary EPS .. .. .. .. ...$0.65 ** .. ....$(4.52) ***. ----

* Includes a cumulative charge of $154.8 million, or $1.86 per share, for nonrecurring items.

** Includes charge of $29.2 million, or 35 cents per share, for accounting rule changes.

*** Includes cumulative charge of $395 million, or $5.17 per share, for extraordinary items, accounting changes and restructuring.

Figures in thousands (except per share data.)

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