Power toolmaker Black & Decker Corp. is restoring pay cuts and the company match in its 401(k) retirement accounts as its financial outlook starts to improve, the company revealed in a regulatory filing Thursday.
The Towson company made the salary reductions in April, one of several cost-cutting moves it has made throughout the year to help weather an economic downturn that has hurt sales of its tools.
Base salaries of top executives were cut by 10 percent, salaried employees by 5 percent and salaried workers who qualify for overtime by 2.5 percent.
Black & Decker also has cut 1,200 jobs.
Thursday's disclosure comes a week after Black & Decker announced it was merging with Connecticut-based Stanley Works in a $4.5 billion all-stock deal. Stanley becomes the majority owner in the buyout, which will cost nearly 250 corporate Black & Decker employees their jobs once it's completed next year.
A spokesman for Black & Decker said the salary reinstatements were planned and weren't connected to the merger.
"It was always intended to be temporary," said the spokesman, Roger Young.
The company said last month, when it announced third-quarter earnings, that it expected demand for its products to stabilize through the end of the year.
It expects diluted earnings per share in the range of 68 cents to 78 cents in the fourth quarter and a range of $2.45 to $2.55 for the full year. The figures exclude restructuring costs.
Black & Decker also said Thursday that no decision has been made on whether to award merit increases next year. Employees will get bonuses that were already in place as well as pension benefits they have already earned, the company said.