Black & Decker's Q3 declines

A day after Stanley reported sales and earnings declines, Black & Decker Corp. followed suit, with third-quarter sales of $1.21 billion, down from $1.57 billion in the year ago quarter.

Black & Decker posted third-quarter sales and earnings declines, with sales in the power tools and accessories segment slipping 21% compared with the prior-year period, the Towson, Md.-based manufacturer reported.

BD's sales were $1.209 billion, down 23.0% from $1.571 billion. Net earnings for the quarter ended Sept. 27 were 55.4 million, down 35.4% from $85.8 million in the prior-year quarter.

The results followed a day after rival Stanley Works posted sales and earnings declines of 16.1% and 19.8%, respectively. And also like Stanley, Black & Decker executives pointed to improved margins as a bright spot.

"Black & Decker reported modestly better sales than our initial guidance, primarily due to the timing of certain promotional sales and favorable currency translation, despite persistent economic challenges," said Nolan Archibald, chairman and CEO. "We also continued to control costs effectively, resulting in an improved operating margin versus the second quarter of 2009 and our July guidance."

In the U.S. Consumer Products Group, the company said sales were down about 20%, and shipments of lawn and garden products were lower than expected.

Hardware and Home Improvement sales decreased 17% compared to third quarter of 2008, but the company pointed to the success of Kwikset SmartKey technology and added that sell-through of locksets remained relatively strong. The company also pointed to the Ready Wrench, which has 16 socket sizes built into one tool, as a key to the lineup of new products.

 "Looking ahead, we are anticipating continued stabilization of demand, but not a near-term rebound," said Archibald.