The Black & Decker Corp., Towson, MD, reported sales fell 27% in the second quarter 2009 to $1.2 billion. Profit was $38.3 million, down from $96.7 million in the prior-year period. The company reported extremely weak" demand in its end-markets for the quarter.
Sales in the company’s Power Tools and Accessories segment fell 21% in the second quarter. U.S. Industrial Products Group sales fell 30% due to declines in both the residential and non-residential areas.
Sales increased at a high single-digit rate in the U.S. Consumer Products Group, with strong shipments of lawn and garden products and the new Porter-Cable line outweighed decreases in other categories.
European sales decreased 30%, similar to the first-quarter trend, with a particularly sharp decline in Eastern Europe. Sales also declined in other parts of the world.Sales in the Hardware and Home Improvement segment decreased 21% for the quarter. The U.S. lockset business experienced a double-digit rate of decrease, as weakness in the residential construction channel and at higher price points overshadowed solid results for Kwikset products at retail.
Sales in the U.S. Price Pfister business decreased more than 30% against a relatively strong quarter in 2008, with declines across all channels.
Sales decreased 32% for the quarter in the Fastening and Assembly Systems segment, with similar declines in the automotive and industrial divisions. According to Black & Decker, industrial distributors continued to de-stock during the quarter, exacerbating a weak demand environment, particularly outside North America.The segment’s operating margin decreased to 5.8% due to the sales decline.
Outlook
The manufacturer expects a sales decline in the third quarter, due to continued weak demand in end-markets, but a "narrower sales decline" in the fourth quarter, due to some stabilization in the automotive industry and more favorable comparison.
