The Black & Decker Corp., Towson, MD, reported sales of $1.6 billion in the third quarter 2006, up from $1.5 billion in the same period last year. Profit grew 3% to $125.1 million.
Power Tools and Accessories increased sales 1%. Sales in the U.S. Industrial Products Group decreased at a low single-digit rate due to a decline in generator orders. Other key industrial product lines, including cordless tools and accessories, posted sales increases.
Sales in the U.S. Consumer Products Group increased at a mid single-digit rate, reflecting sales of the acquired Vector business. Lower orders for pressure washers and consumer tools such as lasers resulted in an organic sales decrease in this group.
International results remained strong, as the European business posted organic sales growth and Latin American sales grew at a double-digit rate. Operating margin for the Power Tools and Accessories segment decreased to 12.1% due to commodity costs and lower productivity.
Sales in Hardware and Home Improvement decreased 1% for the quarter. Lockset business grew sales at a mid single-digit rate. The Price Pfister faucet business had a double-digit sales decline, following double-digit growth last year in the same period. Due to raw material inflation, the segment’s operating margin decreased from a strong level in 2005 to 14% this quarter.
Sales in Fastening and Assembly Systems decreased 1% for the quarter. Sales growth in Asia and in the industrial divisions was outweighed by weakness in the North American automotive industry.
