Black & Decker profits rise despite slower sales

April 26, 1994|By a Sun Staff Writer

Despite weaker-than-expected sales of household products and a lingering recession in Europe, Black & Decker Corp. reported stronger profits yesterday on slightly weaker revenue.

Revenue for the Towson manufacturer of home products and information services declined 1.4 percent, to $1.08 billion, from $1.10 billion during the first three months of the year, while profits rose 5 percent, to $14.6 million, or 14 cents a share, from $13.9 million, or 13 cents a share.

The news helped Black & Decker's stock rise 37.5 cents yesterday, to close at $18.75.

The figures for profits exclude the effects of an accounting rule imposed last year by the Financial Accounting Standards Board. That caused the company to report a loss for the first three months of 1993 of $15.3 million.

Sales of consumer products fell 3 percent, to $406 million, but Chief Executive Officer Nolan D. Archibald said the company plans to introduce "a broad range of new products" this year that should send revenues upward.

Another weak area was True Temper Sports, which was hurt by a shift toward production of composite golf club shafts rather than steel shafts, Mr. Archibald said. The company confirmed yesterday that it would close a club factory in Seneca, S.C., and consolidate production of steel shafts in Amory, Miss.

A robust U.S. auto industry boosted sales of Black & Decker's fastening systems, Mr. Archibald said.

Total operating income for the three-month period increased 1 per cent, but excluding losses from foreign exchange, it increased 4 percent.

Black & Decker Corp. ... ... Ticker ... ... Yesterday's

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

... ... ... ... ... .. .. .. BDK.. .. ... $18 3/4 .. ... . + 3/8

Period ended 4/03/94.. ... 1st qtr... ... Year ago .. Chg.

Revenue.. .. .. .. .. . $1,084,600.. .. $1,099,900.. -1.4%

Net Income.. .. .. .. .. . $14,600.. .. .. $13,900 * +5.0%

Primary EPS.. .. .. .. .. .. $0.14.. .. .. . $0.13 * +7.7%

Figures in thousands (except per share data.)

* Excludes charge of $29.2 million, or 35 cents per share, for accounting change.

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