Black & Decker Corp. said yesterday that it would pull the plug on its struggling U.S. household products unit and eliminate 3,000 jobs companywide in a cost-cutting plan intended to boost profits.
The Towson-based company plans to sell the business that brought the Dustbuster and SnakeLight into millions of American homes.
Black & Decker said the other job cuts -- 10 percent of its work force -- would come mostly from international operations.
Black & Decker's 2,700 Maryland employees are not expected to be significantly affected.
The moves are part of a two-year restructuring that will cost $250 million and ultimately eliminate more than a fifth of Black & Decker's jobs worldwide.
The company said the plan will result in annual savings of $100 million.
"This comprehensive plan represents a fundamental 'retooling' of Black & Decker," said Nolan D. Archibald, chairman and chief executive officer.
Within six months, Black & Decker plans to sell its household product businesses in North America, Latin America and Australia, as well as its profitable glass-making machinery and True Temper golf club shaft businesses.
The company said the divestitures should net about $500 million.
The three businesses on the block account for about $800 million in sales -- about 16 percent of the company's $4.94 billion annual sales. Black & Decker does not plan to sell its European household products operation, which has strong Dustbuster sales.
The restructuring plan will leave Black & Decker focused on its main hardware business with power tools, Price Pfister plumbing products, a range of lock-set brands and fastening and assembly systems.
"When the divestitures are completed, we will be in a position to focus exclusively on core businesses to better leverage our competitive advantages in new product development, brand management and global distribution," Archibald said.
"We believe a repositioned Black & Decker can grow sales at an average annual rate approaching double digits."
4 plants to close
Black & Decker said it will close four power tool plants, including one in Brockville, Ontario, that employs about 350.
That work will be shifted to plants in Easton, Md.; Fayetteville, N.C.; and elsewhere.
Company officials would not name the other three plants because workers had not been notified.
