Toolmaker earnings slip erases bonuses

Black & Decker felt '06 housing slump

March 13, 2007|By Allison Connolly | Allison Connolly,Sun reporter

The slowdown in the housing market that cast a pall over power tools sales last year was reflected in the paychecks for executives at Towson-based Black & Decker Corp.

According to a Black & Decker filing with the Securities and Exchange Commission yesterday, Chairman, President and Chief Executive Officer Nolan D. Archibald and several other top executives did not receive bonuses in 2006.

The company filing put Archibald's total compensation, including his base salary of $1.5 million, at $10.3 million last year, compared with $11.8 million in 2005.

A company spokesman said bonuses were withheld because the company failed to meet performance goals. For 2006, earnings fell nearly 9 percent, to $486.1 million from $532.1 million in 2005. Per share earnings were essentially flat, at $6.55 versus $6.54 in 2005.

"Despite the fact that this year was the second best in our history in terms of earnings and earnings per share, we did not hit our targets," spokesman Roger A. Young said.

For 2007 bonuses, Black & Decker's compensation committee has set as the minimum payout threshold earnings of $7.20 per share and as its maximum, earnings of $8.14 per share, the filing said.

It is unlikely the minimum target will be met, however, based on the company's 2007 forecast calling for earnings of $6.25 to $6.55 per share.

Black & Decker shares fell 36 cents to close at $85.13 on the New York Stock Exchange.

Allison.connolly@baltsun.com

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