TOWSON, Md. – Black & Decker Corp. (BDK), the power tools and home improvement products maker, said Tuesday second-quarter profit rose 27 percent on increased sales, exceeding Wall Street estimates.
The company said its quarterly income grew to $154 million, or $1.88 per share, for the April-June period from $121.6 million, or $1.50 per share, a year ago.
Revenue rose 31 percent to $1.7 billion from $1.3 billion last year. Sales from existing businesses accounted for 11 points of the increase, including 3 points from foreign currency rates, and sales from the Porter-Cable (search) and Delta Tools Group (search) acquisitions accounted for the other 20 points of the increase.
Analysts surveyed by Thomson Financial expected earnings per share of $1.77 on revenue of $1.66 billion.
"Sales were also very strong in the Price Pfister (search) and Kwikset divisions, helping Black & Decker post 8 percent organic sales growth after outstanding growth in the second quarter of 2004," Nolan D. Archibald, chairman and chief executive, said in a statement. "This growth, combined with higher operating margin in existing businesses and a solid contribution from the acquired tools business, enabled us to exceed expectations and extend our track record of operating improvement."
The company forecast third-quarter earnings of $1.62 to $1.67, and earnings of $6.70 to $6.80 per share for the year, excluding the favorable impact of an insurance settlement in the first quarter.
Analysts estimate earnings per share of $1.66 for the third quarter and $6.66 for the full year.
In April, the company said it would cut about 675 jobs with the close of its Fayetteville plant by December 2006.
Shares of the company rose 15 cents to $91.95 on the New York Stock Exchange (search).