Black & Decker to lay off 1,200 after profits fall

[Pale Blue Dot]

Source: Atlanta Business Chronicle

Power tool giant Black & Decker Corp.’s fourth-quarter earnings fell by 77 percent as the firm cut 1,200 jobs and added to the gloomy parade of major multinational companies saying they don’t see improvement coming anytime soon.

Towson, Md.-based Black & Decker (NYSE: BDK) earned $44 million, or 73 cents per share, for the fourth quarter. On average, analysts surveyed by Thomson Financial had expected earnings of 69 cents per share. The quarter’s earnings included a $21 million restructuring charge.

In the same period a year ago, Black & Decker earned $187 million, or $2.94 per share. Revenue slumped by 17 percent to $1.4 billion.

For 2008, Black & Decker earned $294 million, or $4.82 per share. The bottom line dropped by 43 percent from 2007, when Black & Decker earned $518 million, or $7.85 per share. Full-year revenue fell by 7 percent to $6 billion.

Every division at Black & Decker saw double-digit sales declines in the fourth quarter. Power tool sales dropped by 13 percent, as weak construction spending hit the industrial side of the business and slow personal spending nailed the consumer side. Hardware and home improvement sales also took a beating from the construction slowdown, and sales in Black & Decker’s fastening and assembly systems business slumped on global cutbacks in automotive production.

Read more: http://www.bizjournals.com/atlanta/stories/2009/01/26/daily104.html

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Lots of layoff announcements today.

[The_Casual_Observer]

1. I've been noticing that these companies are doing big layoffs even though

they are still showing fairly sizable profits. It's as if they need to maintain $2.94 per share no matter what. My guess is that by reducing the workforce that much, they won't even be able to maintain the .73 per share profit.

[OhioChick]

3. I've noticed that, as well. n/t

[eilen]

2. Does Black & Decker even make tools here anymore?

I think every tool I've looked at is made in China.