Slumping sales forcing Black and Decker to lay off 700

[OhioChick]

Thursday, April 24, 2008 - 1:47 PM EDT

Black & Decker Corp. is planning to lay off around 700 employees after getting nailed in the first quarter by the housing market slump.

The Towson-based power tool maker earned $67 million, or $1.09 per share, in the first quarter. On average, analysts surveyed by Thomson Financial expected Black & Decker (NYSE: BDK) to earn $1.14 per share. In the same period a year ago, Black & Decker earned $108 million, or $1.61 per share.

The quarter included a $12 million after-tax restructuring charge. Without that move, Black & Decker would have earned $1.29 per share.

Sales fell by 5 percent from a year ago to $1.5 billion, even after factoring in the positive effects of foreign exchange rates.

Black & Decker attributed the weak quarter to the continued housing market downturn and rising commodity costs. During the 2007 quarter, many retailers were stocking up on inventory, but this year they have curtailed buying, CFO Michael Mangan said on a conference call with analysts Thursday morning.

http://www.bizjournals.com/baltimore/stories/2008/04/21/daily37.html