Black & Decker Reports $.40 Earnings Per Share for First Quarter of 2001

Apr 23, 2001, 01:00 ET from Black & Decker Corporation

    TOWSON, Md., April 24 /PRNewswire Interactive News Release/ -- The Black &
 Decker Corporation (NYSE:   BDK) today announced that net earnings for the first
 quarter of 2001 were $33.1 million, or $.40 per diluted share, compared to
 recurring net earnings of $47.1 million, or $.54 per diluted share, for the
 first quarter last year.  Reported net earnings of $60.2 million or $.69 per
 diluted share for the first quarter of 2000 included a pre-tax gain of
 $20.1 million related to the recapitalization of True Temper Sports, which was
 sold in 1998.
     Sales for the first quarter of 2001 were $979.0 million, compared to
 $1.04 billion for the same period last year.  Excluding the effects of foreign
 currency translation, sales declined 3%, reflecting the continued economic
 slowdown in the United States and Europe.
     Commenting on the results, Nolan D. Archibald, Chairman and Chief
 Executive Officer, said, "Unfavorable economic conditions and reduction of
 inventories by retailers continued into the first quarter of 2001 and
 negatively affected sales and operating profit versus last year's first
 quarter.
     "Sales in the Power Tools and Accessories segment were down 3% for the
 quarter.  This decline primarily reflected sluggish retail sales and customer
 inventory reductions, especially in our North American business, where sales
 declined at a mid-single-digit rate.  Despite adverse weather conditions in
 the northeastern United States, sales of lawn and garden products were up
 modestly, led by a new line of electric lawn mowers and the recently released
 14.4-volt cordless Hedge Hog(R) hedge trimmer.
     "In Europe, sales were down slightly, also as a result of weak retail
 activity and inventory reduction actions by some customers, but DEWALT sales
 continued to grow at a double-digit rate as we near completion of the
 professional power tool brand transition from Elu to DEWALT.
     "In the rest of the world, Power Tools and Accessories sales were up
 significantly, with improvement in substantially all product categories.
     "Operating profit for Power Tools and Accessories was down significantly
 in the first quarter due to lower sales volume.  Gross margin declined
 slightly, and selling, general, and administrative expense was modestly
 higher.  Notwithstanding the weak economy, we continued to outpace our power
 tool competition in North America, as our sales growth rate in the quarter
 remained higher than the growth rate of the power tool departments at the key
 home center chains.
     "Sales in the Hardware and Home Improvement segment were flat for the
 quarter.  Sales of security hardware increased at a mid-single-digit rate on
 the strength of the market-leading Kwikset brand name as well as the popular
 Society Brass Collection(R) of upscale locksets and handlesets.  Society Brass
 is now available in a majority of home center stores in North America.  Sales
 of Price Pfister plumbing products declined at a mid-single-digit rate due to
 the economic slowdown and inventory reduction actions by some retailers.
 Operating profit for Hardware and Home Improvement declined during the
 quarter, reflecting lower gross margin offset in part by lower SG&A spending.
     "Sales in the Fastening and Assembly Systems segment were down 7% for the
 quarter.  Unfavorable economic conditions in the U.S. resulted in decreased
 sales in our North American automotive and industrial businesses.  This
 decline was partially offset by growth in other regions of the world,
 particularly Asia.  Operating profit declined for the quarter due to lower
 revenue; however, our gross margin percentage and SG&A spending each improved
 slightly.
     "A $34 million increase in inventory from the 2000 year-end level
 reflected the unfavorable economic environment, with the increase concentrated
 in our European Power Tools and Kwikset businesses.  We remain focused on
 supply chain and inventory management, and, to address the higher inventory
 level, we are continuing to slow plant production during the second quarter.
 While we are disappointed with the overall level of inventory, our investment
 is paying off in terms of service levels, which continued to improve during
 the quarter.  This improvement served us well in recent line reviews with
 several key retailers.
     "Free cash flow, which is typically negative during the first quarter
 because of the seasonal nature of our business, was a use of $112 million
 versus a use of $84 million in the first quarter of 2000, primarily reflecting
 lower net earnings offset by lower capital expenditures, and higher cash
 taxes.  Our objective is to convert 70% to 80% of net earnings to cash for the
 full year, and we will continue to make adjustments in our operations to
 achieve this.
     "Looking ahead, it appears that the U.S. and European economies will
 remain slow, with the potential for only modest improvement late in the year.
 Based on this more conservative view of the economy and the more aggressive
 actions that we are taking to reduce inventory, we anticipate that our second
 quarter sales before foreign exchange will be approximately flat compared to
 the same quarter last year and that diluted earnings per share will be in the
 $.50 to $.60 range.  For the full year, we expect sales before foreign
 exchange to be up slightly and diluted earnings per share to be $3.10 to
 $3.25.
     "Although our second-half outlook is based on modest economic improvement,
 we also anticipate a significant benefit from new products scheduled to be
 introduced by each of our businesses during that period.  The introductions
 are on track and will feature an especially significant new product offering
 from DEWALT that we expect to be the largest in its history.  This initiative
 will include entering the pneumatic fastener market with a range of nailing
 products.  Although the majority of new products for 2001 will be launched
 later this year, many have already been introduced, including two innovative
 miter saws and several rotary hammers by DEWALT, a range of Black & Decker(R)
 electric lawn mowers, and the entirely new Professional Series faucet line by
 Price Pfister.
     "Due to the robust new product launch schedule, we expect inventory in the
 second and third quarters to be up somewhat versus the first quarter of 2001.
 By the end of the year, however, we anticipate inventory to be roughly flat to
 the 2000 year-end level.
     "With our market-leading brands, strong customer relationships, continuous
 new product innovation, and an intense focus on improving operations using Six
 Sigma practices, we believe we are in an excellent position to withstand
 current economic challenges and emerge stronger than ever."
     The Corporation will hold a conference call today at 10:00 a.m. EDT to
 discuss first-quarter results.  Investors can listen to the call by visiting
 www.bdk.com, the Corporation's home page, and clicking on the icon labeled
 "Live Webcast."  It is recommended that listeners log-in at least ten minutes
 prior to the beginning of the call to assure timely access.  A replay of the
 conference call will be available on the Corporation's home page through the
 close of business on May 8, 2001.
 
     This release includes forward-looking statements within the meaning of
 Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934.  By their nature, all forward-looking statements involve
 risks and uncertainties.  For a more detailed discussion of the risks and
 uncertainties that may affect Black & Decker's operating and financial results
 and its ability to achieve the financial objectives discussed in this press
 release, interested parties should review Black & Decker's reports filed with
 the Securities and Exchange Commission, including the Current Report on Form
 8-K, filed April 24, 2001.
     Black & Decker is a leading global manufacturer and marketer of power
 tools and accessories, hardware and home improvement products, and technology-
 based fastening systems.
 
 
                 THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF EARNINGS (Unaudited)
                 (Dollars in Millions Except Per Share Amounts)
 
 
 
                                                  Three Months Ended
                                            ------------------------------
                                           April 1, 2001     April 2, 2000
                                           -------------     -------------
 
      SALES                                $       979.0     $     1,037.6
         Cost of goods sold                        636.4             674.6
         Selling, general, and
           administrative expenses                 270.2             271.5
         Gain on sale of business                      -              20.1
                                           -------------     -------------
      OPERATING INCOME                              72.4             111.6
         Interest expense
           (net of interest income)                 22.4              23.8
         Other expense                               2.7                .4
                                           -------------     -------------
      EARNINGS BEFORE INCOME TAXES                  47.3              87.4
         Income taxes                               14.2              27.2
                                           -------------     -------------
      NET EARNINGS                         $        33.1     $        60.2
                                           =============     =============
 
 
      NET EARNINGS PER COMMON SHARE
         -  BASIC                          $         .41     $         .70
                                           =============     =============
 
      Shares Used in Computing Basic
         Earnings Per Share (in Millions)           81.1              86.0
                                           =============     =============
 
 
 
      NET EARNINGS PER COMMON SHARE
         -  ASSUMING DILUTION              $         .40     $         .69
                                           =============     =============
 
      Shares Used in Computing Diluted
         Earnings Per Share (in Millions)           81.7              86.9
                                           =============     =============
 
 
 
                 THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                              (Millions of Dollars)
 
 
                                             April 1, 2001    December 31,
                                               (Unaudited)           2000
                                            --------------   ------------
 
      ASSETS
      Cash and cash equivalents              $       149.3    $     135.0
      Trade receivables                              754.7          783.1
      Inventories                                    877.8          844.0
      Other current assets                           194.7          199.9
                                             --------------   ------------
             TOTAL CURRENT ASSETS                  1,976.5        1,962.0
                                             --------------   ------------
 
      PROPERTY, PLANT, AND EQUIPMENT                 745.0          748.1
      GOODWILL                                       711.1          717.2
      OTHER ASSETS                                   693.2          662.4
                                             --------------   ------------
                                             $     4,125.8    $   4,089.7
                                             ==============   ============
 
      LIABILITIES AND STOCKHOLDERS' EQUITY
      Short-term borrowings                  $       556.9    $     402.9
      Current maturities of long-term debt            38.8           47.7
      Trade accounts payable                         340.7          367.6
      Other accrued liabilities                      691.7          814.1
                                             --------------   ------------
             TOTAL CURRENT LIABILITIES             1,628.1        1,632.3
                                             --------------   ------------
 
      LONG-TERM DEBT                                 772.9          798.5
      DEFERRED INCOME TAXES                          219.7          221.0
      POSTRETIREMENT BENEFITS                        250.4          240.6
      OTHER LONG-TERM LIABILITIES                    487.7          479.8
      COMMON STOCK UNDER EQUITY FORWARDS              25.5           25.1
      STOCKHOLDERS' EQUITY                           741.5          692.4
                                             --------------   ------------
                                             $     4,125.8    $   4,089.7
                                             ==============   ============
 
 
                 THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
          SUPPLEMENTAL INFORMATION ABOUT BUSINESS SEGMENTS (Unaudited)
                              (Millions of Dollars)
 
 
                                     Reportable Business Segments
                        -------------------------------------------------
                               Power        Hardware      Fastening
    Three Months Ended        Tools &      & Home       & Assembly
    April 1, 2001           Accessories   Improvement    Systems     Total
    -----------------------------------------------------------------------
    Sales to unaffiliated
      customers               $656.4       $ 200.9       $ 123.5    $ 980.8
    Segment profit (loss)
      (for Consolidated,
      operating income)         35.0          17.4          19.5       71.9
    Depreciation and
      amortization              23.2           9.9           3.8       36.9
    Capital expenditures        25.9           9.4           3.3       38.6
 
 
    Three Months Ended
    April 2, 2000
    -----------------------------------------------------------------------
    Sales to unaffiliated
      customers               $679.9       $ 200.5       $ 132.3   $1,012.7
    Segment profit (loss)
      (for Consolidated,
      operating income
      before gain on sale
      of business)              53.2          19.1          22.3       94.6
    Depreciation and
      amortization              21.0           9.8           3.9       34.7
    Capital expenditures        51.0           7.1           6.9       65.0
 
 
                              Currency       Corporate,
     Three Months Ended      Translation     Adjustments,
     April 1, 2001           Adjustments   & Eliminations   Consolidated
     --------------------------------------------------------------------
     Sales to unaffiliated
       customers              $ (1.8)              $ -        $ 979.0
     Segment profit (loss)
       (for Consolidated,
       operating income)         (.2)               .7           72.4
     Depreciation and
       amortization              (.1)              6.5           43.3
     Capital expenditures        (.3)               .5           38.8
 
 
     Three Months Ended
     April 2, 2000
     --------------------------------------------------------------------
     Sales to unaffiliated
       customers              $ 24.9               $ -       $1,037.6
     Segment profit (loss)
       (for Consolidated,
       operating income
       before gain on sale
       of business)              2.3              (5.4)          91.5
     Depreciation and
       amortization               .9               6.7           42.3
     Capital expenditures        1.4                .2           66.6
 
 
     The reconciliation of segment profit to the Corporation's earnings before
 income taxes, in millions of dollars, is as follows:
 
                                                          Three Months Ended
      -----------------------------------------------------------------------
                                                           April 1,  April 2,
                                                              2001      2000
      -----------------------------------------------------------------------
 
     Segment profit for total reportable
       business segments                                     $71.9    $94.6
     Items excluded from segment profit:
       Adjustment of budgeted foreign
         exchange rates to actual rates                        (.2)     2.3
       Depreciation of Corporate property
         and amortization of goodwill                         (6.5)    (6.7)
       Adjustment to businesses' post-
         retirement benefit expenses booked
         in consolidation                                     11.0      9.5
       Adjustment to eliminate net interest
         and non-operating expenses from
         results of certain operations in
         Brazil, Mexico, Venezuela, and Turkey                  .2       .1
       Other adjustments booked in
         consolidation directly related to
         reportable business segments                          4.4     (7.0)
     Amounts allocated to businesses in
       arriving at segment profit in excess
       of (less than) Corporate center
       operating expenses, eliminations,
       and other amounts identified above                     (8.4)    (1.3)
     -----------------------------------------------------------------------
     Operating income before gain on
       sale of business                                       72.4     91.5
     Gain on sale of business                                    -     20.1
     -----------------------------------------------------------------------
       Operating income                                       72.4    111.6
     Interest expense, net of interest
       income                                                 22.4     23.8
     Other expense                                             2.7       .4
     -----------------------------------------------------------------------
       Earnings before income taxes                          $47.3    $87.4
     =======================================================================
 
     Basis of Presentation:
     The Corporation operates in three reportable business segments: Power
 Tools and Accessories, Hardware and Home Improvement, and Fastening and
 Assembly Systems. The Power Tools and Accessories segment has worldwide
 responsibility for the manufacture and sale of consumer and professional power
 tools and accessories, electric cleaning and lighting products, and electric
 lawn and garden tools, as well as for product service. In addition, the Power
 Tools and Accessories segment has responsibility for the sale of security
 hardware to customers in Mexico, Central America, the Caribbean, and South
 America; for the sale of plumbing products to customers outside the United
 States and Canada; and for sales of the retained portion of the household
 products business. The Hardware and Home Improvement segment has worldwide
 responsibility for the manufacture and sale of security hardware (except for
 the sale of security hardware in Mexico, Central America, the Caribbean, and
 South America). It also has responsibility for the manufacture of plumbing
 products and for the sale of plumbing products to customers in the United
 States and Canada. The Fastening and Assembly Systems segment has worldwide
 responsibility for the manufacture and sale of fastening and assembly systems.
     The Corporation assesses the performance of its reportable business
 segments based upon a number of factors, including segment profit. In general,
 segments follow the same accounting policies as those described in Note 1 of
 the Corporation's Annual Report on Form 10-K for the year ended December 31,
 2000, except with respect to foreign currency translation and except as
 further indicated below. The financial statements of a segment's operating
 units located outside of the United States, except those units operating in
 highly inflationary economies, are generally measured using the local currency
 as the functional currency. For these units located outside of the United
 States, segment assets and elements of segment profit are translated using
 budgeted rates of exchange. Budgeted rates of exchange are established
 annually and, once established, all prior period segment data is restated to
 reflect the current year's budgeted rates of exchange. The amounts included in
 the preceding table under the captions "Reportable Business Segments," and
 "Corporate, Adjustments, & Eliminations" are reflected at the Corporation's
 budgeted rates of exchange for 2001. The amounts included in the preceding
 table under the caption "Currency Translation Adjustments" represent the
 difference between consolidated amounts determined using those budgeted rates
 of exchange and those determined based upon the rates of exchange applicable
 under accounting principles generally accepted in the United States.
     Segment profit excludes interest income and expense, non-operating income
 and expense, goodwill amortization, adjustments to eliminate intercompany
 profit in inventory, and income tax expense. In addition, segment profit
 excludes restructuring and exit costs and the gain on sale of business. For
 certain operations located in Brazil, Mexico, Venezuela, and Turkey, segment
 profit is reduced by net interest expense and non-operating expenses. In
 determining segment profit, expenses relating to pension and other
 postretirement benefits are based solely upon estimated service costs.
 Corporate expenses are allocated to each reportable segment based upon
 budgeted amounts. While sales and transfers between segments are accounted for
 at cost plus a reasonable profit, the effects of intersegment sales are
 excluded from the computation of segment profit. Intercompany profit in
 inventory is excluded from segment assets and is recognized as a reduction of
 cost of sales by the selling segment when the related inventory is sold to an
 unaffiliated customer. Because the Corporation compensates the management of
 its various businesses on, among other factors, segment profit, the
 Corporation may elect to record certain segment-related expense items of an
 unusual or non-recurring nature in consolidation rather than reflect such
 items in segment profit. In addition, certain segment-related items of income
 or expense may be recorded in consolidation in one period and transferred to
 the various segments in a later period.
 
                     MAKE YOUR OPINION COUNT -  Click Here
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SOURCE Black & Decker Corporation
    TOWSON, Md., April 24 /PRNewswire Interactive News Release/ -- The Black &
 Decker Corporation (NYSE:   BDK) today announced that net earnings for the first
 quarter of 2001 were $33.1 million, or $.40 per diluted share, compared to
 recurring net earnings of $47.1 million, or $.54 per diluted share, for the
 first quarter last year.  Reported net earnings of $60.2 million or $.69 per
 diluted share for the first quarter of 2000 included a pre-tax gain of
 $20.1 million related to the recapitalization of True Temper Sports, which was
 sold in 1998.
     Sales for the first quarter of 2001 were $979.0 million, compared to
 $1.04 billion for the same period last year.  Excluding the effects of foreign
 currency translation, sales declined 3%, reflecting the continued economic
 slowdown in the United States and Europe.
     Commenting on the results, Nolan D. Archibald, Chairman and Chief
 Executive Officer, said, "Unfavorable economic conditions and reduction of
 inventories by retailers continued into the first quarter of 2001 and
 negatively affected sales and operating profit versus last year's first
 quarter.
     "Sales in the Power Tools and Accessories segment were down 3% for the
 quarter.  This decline primarily reflected sluggish retail sales and customer
 inventory reductions, especially in our North American business, where sales
 declined at a mid-single-digit rate.  Despite adverse weather conditions in
 the northeastern United States, sales of lawn and garden products were up
 modestly, led by a new line of electric lawn mowers and the recently released
 14.4-volt cordless Hedge Hog(R) hedge trimmer.
     "In Europe, sales were down slightly, also as a result of weak retail
 activity and inventory reduction actions by some customers, but DEWALT sales
 continued to grow at a double-digit rate as we near completion of the
 professional power tool brand transition from Elu to DEWALT.
     "In the rest of the world, Power Tools and Accessories sales were up
 significantly, with improvement in substantially all product categories.
     "Operating profit for Power Tools and Accessories was down significantly
 in the first quarter due to lower sales volume.  Gross margin declined
 slightly, and selling, general, and administrative expense was modestly
 higher.  Notwithstanding the weak economy, we continued to outpace our power
 tool competition in North America, as our sales growth rate in the quarter
 remained higher than the growth rate of the power tool departments at the key
 home center chains.
     "Sales in the Hardware and Home Improvement segment were flat for the
 quarter.  Sales of security hardware increased at a mid-single-digit rate on
 the strength of the market-leading Kwikset brand name as well as the popular
 Society Brass Collection(R) of upscale locksets and handlesets.  Society Brass
 is now available in a majority of home center stores in North America.  Sales
 of Price Pfister plumbing products declined at a mid-single-digit rate due to
 the economic slowdown and inventory reduction actions by some retailers.
 Operating profit for Hardware and Home Improvement declined during the
 quarter, reflecting lower gross margin offset in part by lower SG&A spending.
     "Sales in the Fastening and Assembly Systems segment were down 7% for the
 quarter.  Unfavorable economic conditions in the U.S. resulted in decreased
 sales in our North American automotive and industrial businesses.  This
 decline was partially offset by growth in other regions of the world,
 particularly Asia.  Operating profit declined for the quarter due to lower
 revenue; however, our gross margin percentage and SG&A spending each improved
 slightly.
     "A $34 million increase in inventory from the 2000 year-end level
 reflected the unfavorable economic environment, with the increase concentrated
 in our European Power Tools and Kwikset businesses.  We remain focused on
 supply chain and inventory management, and, to address the higher inventory
 level, we are continuing to slow plant production during the second quarter.
 While we are disappointed with the overall level of inventory, our investment
 is paying off in terms of service levels, which continued to improve during
 the quarter.  This improvement served us well in recent line reviews with
 several key retailers.
     "Free cash flow, which is typically negative during the first quarter
 because of the seasonal nature of our business, was a use of $112 million
 versus a use of $84 million in the first quarter of 2000, primarily reflecting
 lower net earnings offset by lower capital expenditures, and higher cash
 taxes.  Our objective is to convert 70% to 80% of net earnings to cash for the
 full year, and we will continue to make adjustments in our operations to
 achieve this.
     "Looking ahead, it appears that the U.S. and European economies will
 remain slow, with the potential for only modest improvement late in the year.
 Based on this more conservative view of the economy and the more aggressive
 actions that we are taking to reduce inventory, we anticipate that our second
 quarter sales before foreign exchange will be approximately flat compared to
 the same quarter last year and that diluted earnings per share will be in the
 $.50 to $.60 range.  For the full year, we expect sales before foreign
 exchange to be up slightly and diluted earnings per share to be $3.10 to
 $3.25.
     "Although our second-half outlook is based on modest economic improvement,
 we also anticipate a significant benefit from new products scheduled to be
 introduced by each of our businesses during that period.  The introductions
 are on track and will feature an especially significant new product offering
 from DEWALT that we expect to be the largest in its history.  This initiative
 will include entering the pneumatic fastener market with a range of nailing
 products.  Although the majority of new products for 2001 will be launched
 later this year, many have already been introduced, including two innovative
 miter saws and several rotary hammers by DEWALT, a range of Black & Decker(R)
 electric lawn mowers, and the entirely new Professional Series faucet line by
 Price Pfister.
     "Due to the robust new product launch schedule, we expect inventory in the
 second and third quarters to be up somewhat versus the first quarter of 2001.
 By the end of the year, however, we anticipate inventory to be roughly flat to
 the 2000 year-end level.
     "With our market-leading brands, strong customer relationships, continuous
 new product innovation, and an intense focus on improving operations using Six
 Sigma practices, we believe we are in an excellent position to withstand
 current economic challenges and emerge stronger than ever."
     The Corporation will hold a conference call today at 10:00 a.m. EDT to
 discuss first-quarter results.  Investors can listen to the call by visiting
 www.bdk.com, the Corporation's home page, and clicking on the icon labeled
 "Live Webcast."  It is recommended that listeners log-in at least ten minutes
 prior to the beginning of the call to assure timely access.  A replay of the
 conference call will be available on the Corporation's home page through the
 close of business on May 8, 2001.
 
     This release includes forward-looking statements within the meaning of
 Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934.  By their nature, all forward-looking statements involve
 risks and uncertainties.  For a more detailed discussion of the risks and
 uncertainties that may affect Black & Decker's operating and financial results
 and its ability to achieve the financial objectives discussed in this press
 release, interested parties should review Black & Decker's reports filed with
 the Securities and Exchange Commission, including the Current Report on Form
 8-K, filed April 24, 2001.
     Black & Decker is a leading global manufacturer and marketer of power
 tools and accessories, hardware and home improvement products, and technology-
 based fastening systems.
 
 
                 THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF EARNINGS (Unaudited)
                 (Dollars in Millions Except Per Share Amounts)
 
 
 
                                                  Three Months Ended
                                            ------------------------------
                                           April 1, 2001     April 2, 2000
                                           -------------     -------------
 
      SALES                                $       979.0     $     1,037.6
         Cost of goods sold                        636.4             674.6
         Selling, general, and
           administrative expenses                 270.2             271.5
         Gain on sale of business                      -              20.1
                                           -------------     -------------
      OPERATING INCOME                              72.4             111.6
         Interest expense
           (net of interest income)                 22.4              23.8
         Other expense                               2.7                .4
                                           -------------     -------------
      EARNINGS BEFORE INCOME TAXES                  47.3              87.4
         Income taxes                               14.2              27.2
                                           -------------     -------------
      NET EARNINGS                         $        33.1     $        60.2
                                           =============     =============
 
 
      NET EARNINGS PER COMMON SHARE
         -  BASIC                          $         .41     $         .70
                                           =============     =============
 
      Shares Used in Computing Basic
         Earnings Per Share (in Millions)           81.1              86.0
                                           =============     =============
 
 
 
      NET EARNINGS PER COMMON SHARE
         -  ASSUMING DILUTION              $         .40     $         .69
                                           =============     =============
 
      Shares Used in Computing Diluted
         Earnings Per Share (in Millions)           81.7              86.9
                                           =============     =============
 
 
 
                 THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                              (Millions of Dollars)
 
 
                                             April 1, 2001    December 31,
                                               (Unaudited)           2000
                                            --------------   ------------
 
      ASSETS
      Cash and cash equivalents              $       149.3    $     135.0
      Trade receivables                              754.7          783.1
      Inventories                                    877.8          844.0
      Other current assets                           194.7          199.9
                                             --------------   ------------
             TOTAL CURRENT ASSETS                  1,976.5        1,962.0
                                             --------------   ------------
 
      PROPERTY, PLANT, AND EQUIPMENT                 745.0          748.1
      GOODWILL                                       711.1          717.2
      OTHER ASSETS                                   693.2          662.4
                                             --------------   ------------
                                             $     4,125.8    $   4,089.7
                                             ==============   ============
 
      LIABILITIES AND STOCKHOLDERS' EQUITY
      Short-term borrowings                  $       556.9    $     402.9
      Current maturities of long-term debt            38.8           47.7
      Trade accounts payable                         340.7          367.6
      Other accrued liabilities                      691.7          814.1
                                             --------------   ------------
             TOTAL CURRENT LIABILITIES             1,628.1        1,632.3
                                             --------------   ------------
 
      LONG-TERM DEBT                                 772.9          798.5
      DEFERRED INCOME TAXES                          219.7          221.0
      POSTRETIREMENT BENEFITS                        250.4          240.6
      OTHER LONG-TERM LIABILITIES                    487.7          479.8
      COMMON STOCK UNDER EQUITY FORWARDS              25.5           25.1
      STOCKHOLDERS' EQUITY                           741.5          692.4
                                             --------------   ------------
                                             $     4,125.8    $   4,089.7
                                             ==============   ============
 
 
                 THE BLACK & DECKER CORPORATION AND SUBSIDIARIES
          SUPPLEMENTAL INFORMATION ABOUT BUSINESS SEGMENTS (Unaudited)
                              (Millions of Dollars)
 
 
                                     Reportable Business Segments
                        -------------------------------------------------
                               Power        Hardware      Fastening
    Three Months Ended        Tools &      & Home       & Assembly
    April 1, 2001           Accessories   Improvement    Systems     Total
    -----------------------------------------------------------------------
    Sales to unaffiliated
      customers               $656.4       $ 200.9       $ 123.5    $ 980.8
    Segment profit (loss)
      (for Consolidated,
      operating income)         35.0          17.4          19.5       71.9
    Depreciation and
      amortization              23.2           9.9           3.8       36.9
    Capital expenditures        25.9           9.4           3.3       38.6
 
 
    Three Months Ended
    April 2, 2000
    -----------------------------------------------------------------------
    Sales to unaffiliated
      customers               $679.9       $ 200.5       $ 132.3   $1,012.7
    Segment profit (loss)
      (for Consolidated,
      operating income
      before gain on sale
      of business)              53.2          19.1          22.3       94.6
    Depreciation and
      amortization              21.0           9.8           3.9       34.7
    Capital expenditures        51.0           7.1           6.9       65.0
 
 
                              Currency       Corporate,
     Three Months Ended      Translation     Adjustments,
     April 1, 2001           Adjustments   & Eliminations   Consolidated
     --------------------------------------------------------------------
     Sales to unaffiliated
       customers              $ (1.8)              $ -        $ 979.0
     Segment profit (loss)
       (for Consolidated,
       operating income)         (.2)               .7           72.4
     Depreciation and
       amortization              (.1)              6.5           43.3
     Capital expenditures        (.3)               .5           38.8
 
 
     Three Months Ended
     April 2, 2000
     --------------------------------------------------------------------
     Sales to unaffiliated
       customers              $ 24.9               $ -       $1,037.6
     Segment profit (loss)
       (for Consolidated,
       operating income
       before gain on sale
       of business)              2.3              (5.4)          91.5
     Depreciation and
       amortization               .9               6.7           42.3
     Capital expenditures        1.4                .2           66.6
 
 
     The reconciliation of segment profit to the Corporation's earnings before
 income taxes, in millions of dollars, is as follows:
 
                                                          Three Months Ended
      -----------------------------------------------------------------------
                                                           April 1,  April 2,
                                                              2001      2000
      -----------------------------------------------------------------------
 
     Segment profit for total reportable
       business segments                                     $71.9    $94.6
     Items excluded from segment profit:
       Adjustment of budgeted foreign
         exchange rates to actual rates                        (.2)     2.3
       Depreciation of Corporate property
         and amortization of goodwill                         (6.5)    (6.7)
       Adjustment to businesses' post-
         retirement benefit expenses booked
         in consolidation                                     11.0      9.5
       Adjustment to eliminate net interest
         and non-operating expenses from
         results of certain operations in
         Brazil, Mexico, Venezuela, and Turkey                  .2       .1
       Other adjustments booked in
         consolidation directly related to
         reportable business segments                          4.4     (7.0)
     Amounts allocated to businesses in
       arriving at segment profit in excess
       of (less than) Corporate center
       operating expenses, eliminations,
       and other amounts identified above                     (8.4)    (1.3)
     -----------------------------------------------------------------------
     Operating income before gain on
       sale of business                                       72.4     91.5
     Gain on sale of business                                    -     20.1
     -----------------------------------------------------------------------
       Operating income                                       72.4    111.6
     Interest expense, net of interest
       income                                                 22.4     23.8
     Other expense                                             2.7       .4
     -----------------------------------------------------------------------
       Earnings before income taxes                          $47.3    $87.4
     =======================================================================
 
     Basis of Presentation:
     The Corporation operates in three reportable business segments: Power
 Tools and Accessories, Hardware and Home Improvement, and Fastening and
 Assembly Systems. The Power Tools and Accessories segment has worldwide
 responsibility for the manufacture and sale of consumer and professional power
 tools and accessories, electric cleaning and lighting products, and electric
 lawn and garden tools, as well as for product service. In addition, the Power
 Tools and Accessories segment has responsibility for the sale of security
 hardware to customers in Mexico, Central America, the Caribbean, and South
 America; for the sale of plumbing products to customers outside the United
 States and Canada; and for sales of the retained portion of the household
 products business. The Hardware and Home Improvement segment has worldwide
 responsibility for the manufacture and sale of security hardware (except for
 the sale of security hardware in Mexico, Central America, the Caribbean, and
 South America). It also has responsibility for the manufacture of plumbing
 products and for the sale of plumbing products to customers in the United
 States and Canada. The Fastening and Assembly Systems segment has worldwide
 responsibility for the manufacture and sale of fastening and assembly systems.
     The Corporation assesses the performance of its reportable business
 segments based upon a number of factors, including segment profit. In general,
 segments follow the same accounting policies as those described in Note 1 of
 the Corporation's Annual Report on Form 10-K for the year ended December 31,
 2000, except with respect to foreign currency translation and except as
 further indicated below. The financial statements of a segment's operating
 units located outside of the United States, except those units operating in
 highly inflationary economies, are generally measured using the local currency
 as the functional currency. For these units located outside of the United
 States, segment assets and elements of segment profit are translated using
 budgeted rates of exchange. Budgeted rates of exchange are established
 annually and, once established, all prior period segment data is restated to
 reflect the current year's budgeted rates of exchange. The amounts included in
 the preceding table under the captions "Reportable Business Segments," and
 "Corporate, Adjustments, & Eliminations" are reflected at the Corporation's
 budgeted rates of exchange for 2001. The amounts included in the preceding
 table under the caption "Currency Translation Adjustments" represent the
 difference between consolidated amounts determined using those budgeted rates
 of exchange and those determined based upon the rates of exchange applicable
 under accounting principles generally accepted in the United States.
     Segment profit excludes interest income and expense, non-operating income
 and expense, goodwill amortization, adjustments to eliminate intercompany
 profit in inventory, and income tax expense. In addition, segment profit
 excludes restructuring and exit costs and the gain on sale of business. For
 certain operations located in Brazil, Mexico, Venezuela, and Turkey, segment
 profit is reduced by net interest expense and non-operating expenses. In
 determining segment profit, expenses relating to pension and other
 postretirement benefits are based solely upon estimated service costs.
 Corporate expenses are allocated to each reportable segment based upon
 budgeted amounts. While sales and transfers between segments are accounted for
 at cost plus a reasonable profit, the effects of intersegment sales are
 excluded from the computation of segment profit. Intercompany profit in
 inventory is excluded from segment assets and is recognized as a reduction of
 cost of sales by the selling segment when the related inventory is sold to an
 unaffiliated customer. Because the Corporation compensates the management of
 its various businesses on, among other factors, segment profit, the
 Corporation may elect to record certain segment-related expense items of an
 unusual or non-recurring nature in consolidation rather than reflect such
 items in segment profit. In addition, certain segment-related items of income
 or expense may be recorded in consolidation in one period and transferred to
 the various segments in a later period.
 
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 SOURCE  Black & Decker Corporation